Buru Energy Ltd (ASX:BRU, OTC:BRNGF) continued to progress its Rafael Gas Project during the December 2025 quarter, advancing funding discussions, maturing drilling plans and securing key approvals ahead of a pivotal 2026 appraisal and flow-testing program.
The company also strengthened its balance sheet through a $2.35 million Share Purchase Plan, while maintaining a streamlined exploration footprint across the Canning Basin.
Global funding process underway to underpin Rafael appraisal program
During the quarter, Buru engaged a corporate adviser to manage a global funding process aimed at securing approximately $40 million to fully fund the planned 2026 Rafael resource and flowrate validation program.
The process has attracted interest from a broad range of international and domestic groups, including E&P companies, utilities, commodity traders, asset managers, investment banks, institutional investors, private equity, private credit and royalty companies, all of whom are undertaking due diligence.
Buru is tarreceiveing completion of the funding process in the March 2026 quarter to allow commitment to long-lead items for the upcoming drilling campaign.
Rafael gas project schedule.
Drilling plans mature as Rafael relocates toward development decision
Well planning for the 2026 Rafael program continued to advance, with the current designs for Rafael 2H and a recompletion of the Rafael 1 well incorporating horizontal sections to optimise deliverability and support ultimate reserves.
The program is expected to be carried out in the June 2026 quarter and is designed to underpin indepfinishent reserves certification, a key step toward finalising field development planning and progressing binding agreements with Clean Energy Fuels Australia (CEFA), Buru’s midstream funding and development partner.
Key environmental approvals for the upcoming drilling campaign have already been secured, with remaining environmental and Traditional Owner approvals tarreceiveed for completion in the first half of 2026, ahead of a Final Investment Decision in the second half of the year.
CEO outlines path to first long-term cashflows from Rafael
Chief executive officer Thomas Nador declared the company’s focus remains firmly on bringing Rafael into production and generating long-term cashflows from 2028.
“Buru’s primary focus continues to be the timely development of the Rafael Gas Project and the generation of first longterm cashflows starting in 2028.
“Our global search for a strategic funding partner has generated significant interest from multiple parties.
“This process aims to fully fund our critical 2026 Rafael resource validation program, which includes drilling the Rafael 2H well, recompleting the Rafael 1 well and conducting extfinished flow testing of the resource to support indepfinishent reserves certification.
“This is essential to finalise field development planning for the Rafael Gas Project and to support binding agreements with our midstream funding and development partner, Clean Energy Fuels Australia (CEFA) to co-develop the project.
“With key environmental approvals for the upcoming drilling campaign secured, we plan to obtain the remaining environmental approvals and Traditional Owner agreements for the Rafael Gas Project during the first half of 2026, in support of Final Investment Decision in the second half of 2026.
“I thank our shareholders for their continued support during our recent capital raising. The successful completion of our Share Purchase Plan and placement in late 2025 raised approximately A$4.4 million to maintain development momentum for the Rafael Gas Project.
“We are committed to delivering sustainable value for our shareholders and playing a vital role in Western Australia’s energy security.”
Flying Fox prospect adds upside beneath Rafael structure
Buru also continued evaluating the Flying Fox prospect, identified beneath the main Rafael gas and condensate field following interpretation of the Rafael 3D seismic acquired in 2023.
The prospect lies at a depth of approximately 4,015 metres TVDSS and has been assessed to contain gross prospective resources of between 60 Bscf and 614 Bscf of gas, with a best estimate of 247 Bscf, alongside condensate potential of up to 12.6 MMstb.
Flying Fox Prospective Resources.
The company is assessing the potential to test Flying Fox during the 2026 campaign through a cost-effective deepening of the planned Rafael 2H well.
Flying Fox Prospective location below main Rafael structure.
Ungani remains in care and maintenance as Mars farm-out discussions continue
The Ungani Oilfield remained under care and maintenance during the quarter, with any restart depfinishent on renereceivediation of commercial terms under existing Native Title agreements and regulatory approvals.
Buru continued engaging with third parties regarding a potential equity interest in the Mars Prospect, located approximately 9 kilometres north of the Ungani facilities. Mars is defined on high-quality 3D seismic and is interpreted to be oil-charged, with internal estimates assigning a 40% chance of success for a Mars-1 well.
Section A-A’ from Ungani Far West 1 (UFW1) to Mars Prospect.
Any success at Mars could provide strategic optionality and funding support for Rafael development.
Exploration footprint streamlined across the Canning Basin
As part of its ongoing portfolio rationalisation, Buru completed seven partial title surrfinisher applications across its Canning Basin acreage, reducing permit and licence areas by approximately 60%.
The relocate has lowered holding costs and work commitments, while the company continues to maintain its remaining permits in good standing with minimal expfinishiture.
Capital raise completed to support Rafael development activities
In October 2025, Buru completed its Share Purchase Plan, issuing 69.2 million new shares to raise approximately $1.4 million, with a further $0.95 million raised through an SPP shortfall placement.
The $2.35 million raised before costs will support activities under Buru’s Strategic Development Agreement with CEFA, as well as working capital requirements ahead of binding project agreements and Final Investment Decision.
At December 31, 2025, Buru held $4.1 million in cash and cash equivalents and carried no debt.
Exploration and appraisal expfinishiture during the quarter was primarily directed toward the Rafael Gas Project, while corporate and administration costs remained broadly in line with the previous quarter.
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