Buru Gets New Funding Commitment for Rafael Gas Project

Buru Energy Ltd said Friday it has received commitment for a two-tranche institutional share offering that would raise around AUD 5.3 million ($3.8 million) for the Rafael Gas Project in Western Australia.

Expected to start production by 2029, the onshore development in the Canning Basin is estimated to have a high-confidence resource volume of about 85 billion cubic feet of natural gas and 1.8
million stock tank barrels of liquids, according to West Perth-based Buru. Rafael could produce liquefied natural gas, condensate and liquefied petroleum gas (LPG) for about 20 years, it says.

In the latest round of capital raise for Rafael, Buru said in a stock filing Friday "existing shareholders and a selection of domestic and global institutional investors" were to subscribe to a total of around 355 million shares. The two-part placement would generate AUD 2.3 million in tranche 1 and AUD 3 million in tranche 2.

"In the last several months, in parallel with our engagement with the global market participants to secure funding for drilling and reserves certification, we have been conducting engineering studies to optimize the Rafael Gas Project development. It is pleasing to report that these studies have yielded positive insights and significantly enhanced the project’s economics", said outgoing chief executive Thomas Nador.

"We are seeing a clear path to higher value than previously modelled through the identification of additional liquids and LPG product streams".

"Energy security is a national priority, and these recent insights have wide-ranging implications that provide additional development optionality for the Rafael project.

"In the current circumstances it is appropriate that Buru now takes the time to secure the optimum available funding arrangements for project development for the benefit of Buru shareholders".

Buru has pushed back the drilling timeline, saying the adjustment would "ensure this increased value opportunity is captured in the final funding or partnering structures".

"Buru and Carlingford (UK) continue to facilitate the funding process with potential counterparties. The new economic insights create more optionality. Buru is prioritizing long-term shareholder value over shorter-term funding concessions", Buru said.

On September 8, 2025, Buru said it had obtained environmental approval from Western Australia's Department of Mines, Petroleum and Exploration for Rafael's appraisal drilling.

"The approval also allows for the potential deepening of the Rafael 2H well to test the Flying Fox exploration target", Buru added at the time.

On April 2, 2025 Buru announced a deal with CEFA to co-develop Rafael. CEFA would own the downstream components of the project including a liquefaction plant with a capacity of 300 metric tons a day.

On July 7, 2025 Buru said it had received government approval for a two-year extension for Rafael to apply for a production license. Authorities gave the project until July 2027.

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