Buru Energy has shed another non-core strategic asset, inking a deal to offload its hydrogen and helium subsidiary 2H Resources (2HR) to Denver-based natural hydrogen hopeful Koloma Australia.
The transaction is valued at up to a tasty $2 million in cash and comes as Buru narrows its focus on its flagship Rafael gas and condensate project in Western Australia’s Kimberley region.
The company is hoping its consolidation of funds and focus can transform Buru into a cash flow-generating energy producer by mid-2027.
Following a comprehensive business review and leadership change late last year, Buru identified 2HR and certain Canning Basin assets as non-core to its ambition of building a Kimberley-based gas business at Rafael.
Under the terms of the share sale and purchase agreement, Buru will transfer 100 per cent of 2HR’s issued share capital to the Denver-based Koloma.
The portfolio includes exploration licences and applications across South Australia, Tasmania and WA, covering a mind-boggling 70,000-square-kilometres, an area roughly the size of Ireland.
The deal brings Buru an initial cash payment of $1 million - comprising $0.75 million for 2HR and $0.25 million for the Canning Basin blocks - with a further $1 million in staged payments tied to the conversion of 2HR’s South Australian exploration licence applications by the end of the year.
Buru has also secured a strategic tradable option to acquire up to a 30 per cent interest or $100 million in any future hydrogen discovery by 2HR across its ground, preserving potential upside in the emerging natural hydrogen sector.
Buru Energy chief executive officer Thomas Nador said: “Executing the transaction with Koloma is a testament to the quality of work done to date by the 2H Resources team in assembling a compelling portfolio of assets across Australia. It is now time to hand over the reins to a credible and experienced global player to progress the portfolio to its next phase of value creation.”
Koloma Australia president and vice president of exploration Trey Meckel said: “Following our successful Series A capital raise, Koloma Australia’s acquisition of 2HR is our next step in building a scientifically based, commercially robust and risk-balanced portfolio of natural hydrogen assets in Australia.”
The Rafael project holds an estimated recoverable resource of one trillion cubic feet of gas and more than 20 million barrels of condensate, with a 2024 upgrade confirming a maiden contingent resource of 85 billion cubic feet of gas and 1.8 million barrels of condensate.
Positioned 150km east of Broome, Rafael is the only proven conventional gas and liquids resource in the Kimberley, offering a unique opportunity to supply a region reliant on costly diesel and trucked LNG.
The company says its divestment aligns with Buru’s broader cost-cutting and rationalisation efforts, which have already slashed annual expenditure by $3 million.
Earlier this year Buru shed 97 exploration permits, reducing its Canning Basin landholding by nearly 60 per cent from 13,200 to 5440 square kilometres.
With more than $5 million in cash reserves, Buru is well-positioned to navigate the path to Rafael’s final investment decision, expected later this year. The company’s recent deal with energy supplier Clean Energy Fuels Australia to fund and build a 300-tonne-per-day LNG plant at Rafael further de-risks the project, positioning Buru to transition from explorer to producer.
With a clear strategy, a healthy balance sheet and a high-potential asset in Rafael, Buru is sending a strong signal that it’s all-in on building a cash flow-generating business that could redefine the Kimberley’s energy landscape.
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By Andrew Todd
