Buru welcomes Origin’s new strategy, presses on with Rafael

Buru Energy’s new CEO Thomas Nador says Origin Energy’s announcement it will quit upstream exploration provides clarity for Buru to commercialise the Rafael gas and condensate discovery in WA’s Canning Basin.

Origin told the ASX today it intends to divest its interest in the Northern Territory Beetaloo Basin shale gas joint venture and “exit other upstream exploration permits over time”.

That is presumed to include the interest Origin shares in the Canning Basin in the northwest of WA with Buru.

Buru has a 50% share and is operator of the Rafael 1 condensate-rich gas discovery in the Basin, with Origin holding the remaining 50 per cent.

Origin’s management said its decision to exit exploration will enable greater flexibility to allocate capital towards growing cleaner energy and delivering reliable energy through the transition.

Nador welcomed Origin’s announcement.

“As of this morning, we also have clarity regarding the strategic ambitions of Origin Energy, our partner in the Canning Basin and our significant Rafael gas discovery, to move away from upstream exploration,” he said.

“Having an aligned and motivated joint venture is a key ingredient of success for any development and to this end I welcome the declaration of Origin’s intentions regarding their forward strategy.”

Nador noted that Origin’s support for Rafael had delivered a potentially transformative gas and condensate discovery for Buru.

“We can now concentrate on getting on with it, to work closely with a possible new partner to develop and commercialise this quality project and to deliver the value we know is there,” he said. 

Nador was announced as Buru’s CEO in May but it was not until three weeks ago that the former Beach Energy executive was able to join the West Perth-based oil and gas producer and explorer.

He was formerly Group Executive, Development at Beach Energy and had responsibility for the development of Beach’s oil and gas reserves, including Beach’s Perth Basin assets. 

Nador’s other positions have included Executive Vice President and Country Manager for InterOil Corporation and he also previously held senior project development roles at Woodside.

Such experience should be invaluable for Buru as the company drives the commercialisation of the Rafael wet gas discovery, drilled in late 2021.

Buru announced in April that an independent review of the Ungani Dolomite reservoir in the Rafael 1 well indicated it contains Gross 3C contingent resources of some 1.02 trillion cubic feet of recoverable gas and 20.5 million barrels of condensate.

Nador said he is as excited about the Buru CEO role as he was in May when he accepted it.

He said the company is in great shape, has great assets, committed and highly capable people, strong stakeholder relationships and no debt.

Besides oil and gas exploration, Buru Energy is also active in the new energy economy and has interest in natural hydrogen, carbon capture and storage and battery minerals.

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