Buru (ASX:BRU) set the path to production at Rafael
August 3, 2023Buru Energy have unveiled a plan for early cash to fund its fully owned and operated Rafael gas discovery in Western Australia’s Canning Basin.
Rafael is the first conventional gas and condensate field to be proven in the vast Canning Basin, long considered to have huge dormant hydrocarbon resources as the area with the eighth most potential for shale gas worldwide.
Recent concept studies in with Petrofac, Transborders Energy and Technip Energies have uncovered resources exceeding one trillion tonnes of recoverable gas and 20.5 million barrels of condensate — Rafael is on rails to development.
Buru Chief Executive Thomas Nador said that with full ownership of its discovery, the company had continued to de-risk Rafael through a project realisation approach designed to balance certainty of development outcome and value with the ongoing maturity of understanding of the Rafael accumulation.
“The work done to date confirms that Rafael gas and condensate can be technically, commercially, and economically developed across the full range of independently assessed contingent resources, with a sequenced development based on appraisal outcomes providing strategic advantages to resource development,” Mr Nador said.
“This strategy will support the potential transformation of the Kimberley power system by providing a mix of low carbon intensity, secure and affordable energy to regional industrial consumers and communities in the near term, and also help optimise a full-scale, CCS supported, and export focussed development in the medium to longer term,” he added.
“With Buru’s high appraisal value 3D seismic program due to commence within days, planning for appraisal drilling next year well advanced, and for the first time, a clear line of sight to the Rafael development via a staged, risk balanced commercialisation plan – Buru has the ingredients to generate significant value and benefits to stakeholders, and prospective development partners.”
Phased development
Phase 1 is now set for a small footprint, but scalable hybrid gas to power and renewables project based on the low volume estimate of Rafael with production targeted for 2027, with Phase 2 to follow rapidly.
The second stage of operations will be informed by next year’s appraisal drilling, with concept selection estimated for mid-2025 and beginning front end engineering design shortly after, with a floating LNG facility demonstrated as a feasible option if appraisals confirm the required resource.
Discussions have begun with stakeholders to back in its plan, and Buru will begin looking at a partner selection process to bring the first conventional gas and condensate project to the Canning Basin.
Development timeline
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