Buru Energy Nets Up to AUD 2 Million Selling 2H Resources to Koloma

Strategic Divestment to Refocus Capital

Buru Energy Limited has taken a decisive step to streamline its portfolio by executing agreements to sell its wholly owned hydrogen and helium exploration subsidiary, 2H Resources Pty Ltd (2HR), along with certain non-core exploration assets in Western Australia's Canning Basin. The buyer, Koloma Australia Pty Ltd, a subsidiary of the global geologic hydrogen leader Koloma Inc., will assume operational control from 1 July 2025.

This move follows a comprehensive business review conducted in late 2024, which identified the need to monetise and exit 2HR to better allocate capital towards the Rafael Gas Project. Buru’s CEO, Thomas Nador, emphasised that this divestment aligns with the company’s disciplined strategy to commercialise its gas and condensate resources in the Kimberley region, aiming for stable and growing cash flows.

Transaction Details and Financial Terms

The total consideration for the transaction is up to AUD 2 million, structured as an initial cash payment of AUD 1 million and further staged payments of up to AUD 1 million contingent on the phased conversion of 2HR’s South Australian Petroleum Exploration Licence Applications into granted Exploration Licences, expected by the end of 2025. Additionally, Buru retains a tradable buy-back option to acquire up to 30% interest, capped at AUD 100 million, in any future hydrogen discovery made by 2HR.

The sale also includes certain graticular blocks in the Canning Basin deemed non-core to Buru’s operations, part of a rationalisation effort to sharpen the company’s focus. Koloma will take on the associated costs and work program commitments from the effective date, signalling a full operational handover.

Koloma’s Ambitious Hydrogen Exploration

Koloma Australia, established in early 2025 following a successful capital raise, is positioning itself as a key player in natural geologic hydrogen exploration in Australia. Dr Trey Meckel, Koloma Australia’s President and VP Exploration, highlighted the company’s commitment to building a scientifically robust and commercially viable portfolio of hydrogen assets. Their goal is to advance sustainable natural hydrogen production, contributing to cleaner energy solutions and carbon neutrality.

Koloma’s acquisition of 2HR represents a significant step in expanding its footprint in Australia’s emerging hydrogen sector, leveraging the quality of assets and groundwork laid by Buru’s 2HR team.

Implications for Buru and the Market

For Buru, this divestment is more than a simple asset sale; it is a strategic realignment that prioritises the Rafael Gas Project, which is expected to deliver long-term, stable cash flows. The transaction also reflects a broader industry trend where companies are honing their portfolios to focus on core, cash-generative assets amid evolving energy markets.

Investors will be watching closely how the staged payments unfold with licence conversions and whether Buru exercises its buy-back option should significant hydrogen discoveries emerge. Meanwhile, Koloma’s progress in exploration and drilling will be critical to validating the potential of the acquired assets.