Buru Energy (ASX:BRU) Limited said independent consultants have assessed 2P reserves of 15.25 million barrels of oil equivalent at its 100 per cent owned Rafael gas project in Western Australia's Canning Basin, as it reported its September 2026 quarter. The company ended the period with $2.5m in cash, no debt and a stated funding runway of about 1.24 quarters, so securing investment is central to its plans. Buru's fully paid ordinary shares number 1,358,660,440.

Rafael reserves and approvals

Buru said Sproule ERCE, with an effective date of 31 August 2026, estimated 2P reserves at Rafael of 15.25 MMboe, comprising 65.7 billion cubic feet of sales gas, 98.5 kilotonnes of LPG and 2.9 million stock tank barrels of condensate. Proved (1P) reserves are 5.28 MMboe. The booked reserves cover two horizontal wells and a modular LNG and liquids facility, with further volumes classed as contingent resources rather than reserves.

On approvals, the project was referred to the Western Australian EPA on 5 October 2026, with a decision on whether to assess it expected by late 2026. A production licence application was submitted on 19 October 2026. The company said environmental approvals for drilling and flow testing are in place.

The company also highlighted the Flying Fox prospect beneath Rafael, which it estimates at a P50 of 247 billion cubic feet of gas and 5.0 million barrels of condensate, with a 45 per cent chance of success. That is a prospective estimate, not a reserve.

Timetable and funding

Buru's board has approved drilling and testing of two production wells at Rafael in 2027, subject to funding. The company is targeting a final investment decision in the second half of calendar 2027 and first gas in early calendar 2029. Negotiations with potential investors are continuing, with the aim of a fully funded solution through to first gas, but no terms have been disclosed. Talks with Traditional Owners are also continuing, and a community meeting was held in Derby on 9 and 10 September 2026.

Quarterly cash flow

Operating cash outflow for the quarter was $1.07m, investing outflow was $0.92m and financing outflow was $0.03m, a net decrease in cash of $2.0m. The company reported net equity proceeds of $5.0m for the year to date and related-party payments of $84k, all directors' fees.

Other Canning Basin assets

The Ungani oilfield remains in care and maintenance, with restart and offtake options under review. Buru lifted its 2C contingent resources at Ungani from 220,000 barrels to 660,000 barrels, and it is assessing a micro-refinery to produce diesel for the Kimberley region. About nine kilometres to the north, the Mars prospect carries a 40 per cent chance of success for a first well, and the company is considering a farmout.

At the Yulleroo gas field, an unconventional play in the Laurel Formation, the company cites 2C contingent resources of 714.0 petajoules of sales gas and 24.9 million barrels of associated liquids, plus best-estimate prospective resources of 302.8 petajoules of sales gas. The report notes that this assessment dates from 2017. Other Canning Basin acreage is being held in good standing with minimal spending following a portfolio rationalisation in 2025.

Risks and next steps

Buru identified several dependencies. Drilling and first gas rely on funding that is not yet in place, and the cash runway is short on the company's own estimate. The EPA decision and production licence are pending, Traditional Owner agreements are not finalised, and reserve and resource estimates are inherently uncertain. Restarting Ungani depends on commercial options that have not been confirmed.

The confirmed milestones are an EPA decision in late 2026, drilling and flow testing at Rafael in 2027 subject to funding, a final investment decision in the second half of 2027 and first gas in early 2029.