Australia's Buru Energy secures A$5mn backing for Rafael gas project

Australian energy company Buru Energy has completed a share placement, raising a total of A$5mn ($3.2mn) to fuel the appraisal and development of its Rafael conventional gas discovery in Western Australia, it said on November 14. The company has also launched a share purchase plan (SPP). 

The funds will specifically support long-lead items required for the planned 2024 appraisal drilling programme, ensuring a smooth and timely execution of the project.

“The development of the Rafael conventional gas accumulation can provide much needed reliable energy for Northern Australia with a materially reduced carbon footprint compared to current systems. There is also the potential for clean ammonia production using low CO2 Rafael gas and utilising the significant carbon storage capacity identified by Buru in the Canning Basin proximate to the Rafael discovery,” Buru’s CEO Thomas Nador said. 

The placement shares, totaling 43,308,700, are expected to be issued on November 20. The placement price of A$0.115/share represents a discount to the closing Buru trading price on November 9 and the 10-day VWAP.

Alongside the placement, Buru Energy has launched an SPP, providing eligible shareholders with the opportunity to apply for shares up to a maximum value of A$30,000 at the same price as the placement. The SPP will open on November 20.

Buru recently awarded GHD the pre-front end engineering design scope for the Rafael first phase development. The company has successfully completed the Rafael 3D seismic survey acquisition programme within exploration permits EP 428 and EP 457 in the Canning Basin. Buru holds 100% interest in EP 428 while it has 60% ownership in EP 457 with the rest owned by Rey Resources. It operates both permits.