Buru Energy Limited (ASX: BRU) Provides Activities Update
Buru Energy Limited (ASX: BRU) has released an update detailing significant advancements related to its re-focused strategy aimed at establishing enduring cashflows through the Rafael Project. The company is on track to execute key commercial agreements in early 2025 as it aims to deliver sustainable energy solutions in the Kimberley region.
Rafael Project Development
Buru Energy is prioritising the advancement of the Rafael Project, which includes establishing a gas and liquids business expected to generate substantial annual cashflows by late 2027. This initiative is aimed at replacing imported fuel with locally sourced Liquefied Natural Gas (LNG) and liquids. The company anticipates the Final Investment Decision (FID) by late 2025, aligning with Western Australian government plans to revamp the Kimberley energy system.
CEO Thomas Nador expressed confidence, stating, “Buru Energy is finishing the year with a very clear focus… to establish long-term foundation cash flow.” Discussions to secure commercial and offtake agreements are currently under negotiation, with support from the Northern Australian Infrastructure Facility.
Subsurface and Oilfield Updates
Recent geological and geophysical studies bolstered confidence in the in-place resources at Rafael, which will support further development in 2025. Exploration at the Ungani Oilfield is in progress to explore domestic offtake pathways and alternative export routes aimed at reinstating production effectively. The optimised production strategy is set to accommodate production rates of 200-250 barrels of oil per day.
Canning Basin Acreage Rationalisation
Buru Energy is actively rationalising non-core acreage in the Canning Basin, with the goal of reducing exploration permit areas and internal costs. The expected outcome is a decrease in permit areas from 13,200 km² to 5,440 km² by the end of the second quarter of 2025.
Subsidiary Monetisation Plans
The company has initiated processes for the divestment of 2H Resources and Battmin, focusing on advancements in natural hydrogen and helium exploration as well as battery mineral resources. Both subsidiaries are expected to conclude corporate divestment processes in early 2025, allowing Buru to concentrate on its core operations.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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