Buru Energy (ASX:BRU) Provides Rafael Gas Project Update
Project Progress
Buru Energy has advanced the Rafael Gas Project with a high confidence 1C contingent resource of 85 Bcf confirmed through recent 3D seismic survey interpretation. The successful drilling of Rafael 1, despite a 21% chance of discovery, marks a significant milestone in the project’s development.
Strategic Partnerships
The company has entered a Strategic Development Agreement with Clean Energy Fuels Australia (CEFA), enabling CEFA to finance, build, own, and operate the LNG plant and condensate infrastructure. This partnership allows Buru to focus its expenditures on wells and processing tariffs, while CEFA handles the downstream operations.
Future Outlook
Buru Energy plans to make the Final Investment Decision by late 2025 or early 2026, aiming for first production in the second half of 2027. The project is projected to generate annual pre-tax operating cashflow of approximately A$70 million over a 20-year production life.
Economic Impact
The Rafael Gas Project is estimated to have a gross unhedged NPV of A$400 million and an IRR of 44%, based on a 1C contingent resource. These figures highlight the project’s potential to transform Buru from an explorer to a foundation gas business in the Kimberley region.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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