Australia's Buru makes progress with Rafael 1 gas discovery
Sydney-listed Buru Energy has obtained approval from the Western Australian government for its declaration of location application concerning the Rafael 1 gas and condensate discovery, it said on July 4. The discovery is located within exploration permit EP 428 in the Canning basin.
The approval grants Buru a period of up to two years to apply for a production licence or retention lease, with the potential for an extension of up to four years at the discretion of the state government.
The Rafael 1 gas condensate discovery well in Western Australia’s Canning basin was drilled in late 2021 and flow tested in March 2022. The independent resource estimation was completed in late April by ERCE Australia. This review confirmed the company’s view that the Rafael structure has the potential to contain a "regionally significant" gas and condensate accumulation.
In preparation for further assessment and appraisal, Buru is finalising arrangements for a 3D seismic survey over the Rafael gas and condensate accumulation, scheduled for acquisition in the third quarter of 2023.
The upcoming survey aims to provide essential insights into the size and potential gas column extent within the Ungani Dolomite reservoir, enabling optimised well locations for planned appraisal drilling in 2024. The data collected during the resource appraisal will refine the current contingent resource volumes estimate.
Buru said it has made significant progress in well engineering, rig selection, and long lead item procurement planning. Furthermore, comprehensive third-party engineering studies have been completed, facilitating development concept selection and monetization options for the Rafael resource. These studies account for various Rafael resource volume scenarios and are expected to be finalized this month.
The completion of this work will expedite the progression to front end engineering and design (FEED) following resource appraisal, reducing the overall cycle time to reach a final investment decision for the Rafael development.
Earlier this year, Buru agreed to acquire Origin Energy’s joint venture interest in the Canning basin permits, which include the Rafael conventional gas and condensate discovery. Under the terms of the transaction, Buru will receive Origin’s 50% participating interest in exploration permits EP 428, which contains the Rafael-1 conventional gas and condensate discovery, EP 129, EP 391, EP 431 and EP 436 with Buru owning 100% of these permits.