How Will Buru Energy’s 2026 Rafael Drilling Shape Its Gas Future?
Buru Energy has secured environmental approval for its 2026 Rafael resource appraisal drilling campaign, a crucial step toward final investment and first cashflows by 2028.
- Environmental Plan approved by Western Australia Department of Mines
- 2026 drilling includes Rafael 2H well and recompletion of Rafael 1 well
- Final Investment Decision for Rafael Gas Project expected in second half of 2026
- Strategic Development Agreement with Clean Energy Fuels Australia supports LNG plant plans
- First cashflows projected from 2028 pending successful appraisal and funding partner
Environmental Approval Unlocks Next Phase
Buru Energy has received a significant regulatory green light from the Western Australia Government’s Department of Mines, Petroleum and Exploration for its Well Drilling Environment Plan. This approval clears the path for the company’s planned 2026 appraisal drilling campaign at the Rafael Gas Project, located in the EP 428 permit area. The endorsement is a critical milestone that de-risks the upcoming drilling activities and signals progress toward commercial development.
Drilling Plans and Strategic Importance
The approved program includes drilling the high-impact Rafael 2H well from the existing Rafael 1 well pad, alongside recompleting the Rafael 1 well with a sidetrack. Both wells are expected to feature horizontal sections designed to maximize reservoir contact and optimize gas flow. Additionally, there is potential to deepen the Rafael 2H well to explore the Flying Fox prospect, adding an exploratory dimension to the campaign.
These activities are not just technical exercises; they are foundational to Buru’s strategy to advance the Rafael Gas Project toward a Final Investment Decision (FID) planned for the second half of 2026. The company anticipates first cashflows from the project by 2028, contingent on successful appraisal results and securing an upstream funding partner.
Partnerships and Future Infrastructure
Integral to the project’s commercial viability is the Strategic Development Agreement signed in April 2025 with Clean Energy Fuels Australia (CEFA). This agreement sets the stage for CEFA to finance, build, own, and operate a small-scale liquefied natural gas (LNG) plant at the Rafael 1 wellsite, with a capacity of up to 300 tonnes per day. The plant will also include condensate infrastructure, enabling Buru to monetize its gas resources efficiently.
Buru’s CEO, Thomas Nador, emphasized the importance of the environmental approval in maintaining project momentum and attracting a funding partner interested in a low-risk entry into a promising gas business with growth potential.
Looking Ahead
While the environmental approval marks a key regulatory hurdle cleared, the success of the Rafael appraisal campaign and the ability to secure a funding partner remain pivotal. The outcomes will shape the trajectory of the Rafael Gas Project and its contribution to Western Australia’s energy landscape.
Bottom Line?
With environmental approval secured, Buru Energy’s next challenge is to convert appraisal success into investment and production.
Questions in the middle?
- Who will be the upstream funding partner for the 2026 drilling campaign?
- What will the appraisal results reveal about the size and quality of the Rafael resource?
- How quickly can the LNG plant with CEFA be constructed following a positive FID?
