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Buru Energy (ASX:BRU) has caught flak from shareholders today after revising the development timeline for its wholly-owned Rafael Gas Project – and that disappointment has turned into a -8.3% drop by arvo trade.
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Buru has set Rafael B as the top priority at the Canning Basin Site, with plans to drill and test there before eventually returning to complete the Rafael 1 well.
Drilling at the site also has a new date: Buru will fire up drills in June 2026.
The delay saw some holders bail out, leading to a 0.2c dip for the energy stock. It’s not ideal for those who’ve been long in the smallcap company either considering performance across the year-to-date is closer to -45%.
The general sentiment in HotCopper threads after the announcement wasn’t overly positive either, with some calling it “hugely disappointing.” Other users suggested it made sense, though, and called for patience.
Buru is convinced this slower roll is the right idea, with risk reduction and an increase in the probability of the explorer hitting higher reserves key factors in the call.
“The Rafael technical assurance process has delivered valuable information to underpin decision making on the risks and opportunities of our Rafael appraisal and production flow test program,” Buru CEO Thomas Nador said.
“Drilling and testing the Rafael B appraisal well next is the optimum pathway to proving up the resource and underpinning a robust final investment decision.”
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While this revised testing plan means everything will be happening six months later than originally slated, Buru remains positive that first production at the wells – and with it material cashflow – will come in late 2027.
This does still come relatively close to the date estimates made by Buru when they partnered with Clean Energy Fuels Australia in April this year.
This afternoon, BRU shares are sitting at 2.2c each after Thursday’s slump.
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