Buru Energy now plans Rafael gas wells for mid-2027, a year later than first targeted

Buru Energy plans to drill and test the Rafael 2H well and recomplete the Rafael 1 well in the June 2027 quarter. Both wells are part of the Rafael Gas Project in permit EP 428 in Western Australia, where Buru holds 100% and is operator. The timing was stated on 27 May 2026.

Why it matters

Buru's January 2026 quarterly report called this work essential to finalise field development planning and to support binding agreements with its midstream partner, Clean Energy Fuels Australia. It would also support independent reserves certification. The company said then it was aiming for first long-term cashflows from 2028. If the wells confirm the resource and flow rates, that would be the evidence the company says it needs for a development decision. If they do not, the project's basis would be in question.

What has slipped

The January report said drilling was expected in the June quarter of 2026. It said a funding process was targeted to finish in the first quarter of 2026, and it pointed to a final investment decision in the second half of 2026. The latest statement puts the wells a year later. The inputs do not say why, or whether a funding partner has been secured.

The January report estimated the 2026 validation program at A$40 million. That figure has not been updated in the inputs.

Funding position

Buru reported $4.5 million in cash at 30 June 2026, about 1.8 quarters of funding at its recent spending rate. In June it placed 47.5 million shares, plus 23.75 million free-attaching shares, at $0.02. Shares on issue were 1,358,660,440 in mid-July, up from 1,002.4 million at the end of December 2025. The A$40 million estimate is many times the cash on hand, so outside funding would be needed.

The rest of the portfolio

Buru holds 100% of most of its other assets, which are mainly prospective resources:

• Flying Fox (gas), Mars (oil, P50 10.6 mmbbl), Kilto and Miani (oil, 17 mmbbl each), Fairwell (oil) and Pictor (oil, contingent 10 mmbbl).
• Paradise and Paradise Deep carry 2011 gas and condensate estimates, and Buru's interest is not disclosed.
• Ungani oilfield has been under care and maintenance since August 2023. In August 2026 Buru raised its 2C Contingent Resource estimate to 660,000 bbls and began assessing lower-cost restart options.

A figure to check

The valuation inputs list Flying Fox at a P50 of 60 bcf. The January report gave 60 Bscf as the low case and 247 Bscf as the best estimate (P50). The inputs may reflect a later revision, but that is not confirmed.