Buru Energy Ltd. has adjusted the timeline for the development of the Rafael natural gas project in Western Australia’s Canning Basin but still aims for a startup late 2027.
The Rafael gas and condensate field is in Exploration Permit 428, about 150 kilometers (93.21 miles) east of Broome and around 85 kilometers south of Derby in the Shire of Derby-West Kimberley, according to Buru. Rafael is the only confirmed source of conventional gas and liquids onshore Western Australia north of the North West Shelf Project, according to Buru.
First drilled in 2021 and confirmed as a discovery the same year, Rafael has been assessed to hold contingent and unrisked gross recoverable volumes of 85-523 Bscf of gas and 1.8-10.6 MMstb of condensate, according to Buru.
Buru eyes a 20-year production life. It expects the project to supply trucked liquefied natural gas and liquids to Pilbara and the Northern Territory. Buru plans to drill two wells, including the 2021 discovery.
Under the new timeline, instead of recompleting the discovery well as a producer before drilling a second well called Rafael B, Buru will now drill and test Rafael B first. Drilling is planned to start June 2026.
The change aims “to reduce risk and increase the probability of higher reserves”, West Perth-based Buru said in a regulatory filing.
Chief executive Thomas Nador said, “The Rafael technical assurance process has delivered valuable information to underpin decision making on the risks and opportunities of our planned Rafael appraisal and production flow test program”.
“Drilling and testing the Rafael B appraisal well next is the optimum pathway to proving up the resource and underpinning a robust Final Investment Decision, whilst maintaining our first cashflow target of late 2027”, Nador added.
Earlier this month Buru said it had received government approval for a two-year extension of time for Rafael to apply for a production license. Western Australia’s Mines, Petroleum and Exploration Department gave the project until July 2027.
“This approval for an extension of time in which to apply for a Production License for Rafael will allow important work to be completed, including the maturation of technical and commercial work with our development partner, Clean Energy Fuels Australia (CEFA)”, Nador said in a filing July 7.
On April 2 it announced a deal with CEFA to co-develop Rafael. CEFA would own the downstream components of the project.
“The SDA [strategic development agreement] provides a clear pathway to building a valuable long-term gas and condensate business in the northwest of Western Australia, combining Buru’s upstream resource and expertise with CEFA’s strong downstream and midstream capabilities, strong financial backing and incumbency in the Western Australian domestic LNG market”, Buru said.
“Buru and CEFA have agreed a business model as the basis for future binding agreements, expected to be executed in late 2025”, it added. “CEFA will fully finance, build, own and operate an LNG plant with a capacity of up to 300 tonnes per day and associated condensate infrastructure on the Rafael 1 wellsite”.
“Buru is responsible for the financing, construction and operation of the upstream elements of the Project”, Buru said.
“Buru is pursuing several options to fund its 2025 Rafael 1 well recompletion and testing program to support independent certification of the Rafael reserves, and the drilling of a development well in 2026”, it said. “Reserves certification is a key condition precedent to binding agreements with CEFA”.
To contact the author, email jov.onsat@rigzone.com
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