Buru Energy Targets A$40 Million Funding and 2026 FID for Rafael Gas Project
Buru Energy is actively pursuing funding for its 2026 drilling campaign to validate resources at the Rafael Gas Project, aiming for a Final Investment Decision in the second half of 2026 and first cashflow by 2028.
- Global funding process underway for A$40 million 2026 drilling program
- Final Investment Decision targeted for second half of 2026
- Strategic partnership with Clean Energy Fuels Australia to develop LNG plant
- Regulatory approvals secured for drilling and environmental plans
- Operational restructuring reduces costs and streamlines focus on Rafael project
Buru Energy's Strategic Shift
Buru Energy Limited is making significant strides in transforming from an explorer to a producer with its Rafael Gas Project in Western Australia's Canning Basin. The company is currently engaged in a global process to secure funding partnerships to finance a critical drilling campaign planned for 2026. This campaign aims to validate the resource and flowrate of the Rafael gas field and achieve independent reserves certification, essential steps before moving to full-scale development.
Funding and Partnerships
The funding process, targeting completion in the first quarter of 2026, has attracted a diverse range of interested parties including exploration and production companies, utilities, commodity traders, and institutional investors. This broad interest underscores the perceived value and growth potential of the Rafael Gas Project. Buru’s strategic development partner, Clean Energy Fuels Australia (CEFA), is set to finance, build, own, and operate an LNG plant with a capacity of up to 300 tonnes per day, further solidifying the project's commercial viability.
Regulatory and Operational Progress
Regulatory approvals are firmly in place, with the Western Australia Government’s Department of Mines, Petroleum and Exploration having approved the Well Drilling Environment Plan in September 2025. The planned drilling program includes the Rafael 2H well and recompletion of the Rafael 1 well, potentially incorporating horizontal drilling techniques to enhance resource extraction. Drilling is scheduled to commence in the second quarter of 2026, contingent on securing upstream funding.
Cost Management and Corporate Restructuring
In parallel with project development, Buru has implemented a major business review resulting in a 40% reduction in headcount and annual general and administrative cost savings of approximately A$3 million. The company has also streamlined its asset portfolio by reducing exploration permit areas by 60% and divesting non-core subsidiaries, all while maintaining exposure to future value. These measures have helped maintain a debt-free balance sheet and raised A$4.4 million through a recent placement and share purchase plan to support ongoing development activities.
Looking Ahead
With a clear focus on delivering the Rafael Gas Project, Buru aims to finalize funding arrangements, complete drilling operations safely, secure necessary environmental and traditional owner approvals, and finalize commercial terms with CEFA. The company is targeting a Final Investment Decision in the second half of 2026, setting the stage for potential first cashflows from 2028. This timeline positions Buru to capitalize on growing demand for clean energy solutions in Australia and beyond.
Bottom Line?
Buru Energy’s next 12 months will be pivotal as funding and drilling outcomes set the tone for its transition to producer status.
Questions in the middle?
- Which funding partner will Buru select to finance the 2026 drilling program?
- How will drilling results impact the timing and scale of the Final Investment Decision?
- What are the commercial terms being negotiated with Clean Energy Fuels Australia?
