Buru Energy says it is inching ever closer to production in Western Australia after the Environmental Protection Authority (EPA) approved exploration and well appraisal at the neighbouring Valhalla gas project in the Canning Basin.
Buru received its own EPA approval in September last year and says the move is a major endorsement of the onshore Canning Basin by the government, where Buru and its Rafael project are set for drilling in the June quarter of this year.
The company also says the approval is confirmation of the basin's potential as a major energy source for Western Australia, with the approval underscoring the onshore Canning Basin's capacity to help resolve Western Australia's approaching domestic gas deficit.
The EPA's recommendation arrives amid challenges in the state's gas market, with maturing offshore fields waning and the shift to renewables demanding fresh supplies for reliable power.
Projects such as Buru's Rafael Gas project and Black Mountain Energy's Valhalla offer essential contributions to sustained energy stability.
Developing the Canning Basin provides an onshore option to current supply networks. Harnessing these resources to deliver steady, cost-effective gas to WA homes, industries and mineral processors.
The company says Valhalla centres on unconventional resources, while Buru's Rafael Gas project marks the basin's first confirmed conventional gas find.
Buru Energy CEO Thomas Nador said: “The EPA’s recommendation for Black Mountain Energy’s Valhalla Project is a win for the entire Canning Basin and for Western Australia. It signals to investors and the community that the Canning Basin is open for responsible, regulated energy development. The large scale of Valhalla, combined with Buru’s significant unconventional discovery at Yulleroo and our conventional Rafael Gas Project, positions the Canning Basin as a critical contributor to Western Australia’s increasingly urgent domestic gas requirements whilst also providing the firming fuel required to support a renewable energy future.”
Rafael is closing in on a final investment decision, positioning the project to deliver a high-margin, low-complexity gas supply for the domestic market from as early as 2028.
Elsewhere, and while not a current priority, Buru’s Yulleroo discovery stands as a notable unconventional wet gas field in the basin, with substantial gas in tight sandstones of the Laurel Formation and could provide a lucrative upside option post a Rafael restart.
A positive Valhalla appraisal, paired with Rafael's planned rollout, may form a varied energy centre in WA's northwest, offering prompt conventional output and extended unconventional volumes to secure the region’s future.
With this regulatory nod, Buru can confidently advance its focus on its Canning Basin opportunities, aiming to bolster regional energy reliability for Western Australia’s future.
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