Buru Energy Limited has announced the identification of a significant new deep gas prospect, Flying Fox, located beneath its proven Rafael gas field in Western Australia’s onshore Canning Basin. The prospect, revealed via recently acquired 3D seismic data, lies roughly 4,015 meters below the surface and covers an area of about 26 square kilometers with up to 370 meters of vertical relief. This structure, directly imaged beneath the Rafael field, is characterized by dolomitised, vuggy carbonates from the Nullara or Pillara Formation capped by sealing shales from the May River Formation. The Flying Fox target can be explored by drilling an additional 500 meters below the existing gas accumulation. Technical assessments indicate prospective resource estimates ranging from 60 to 614 billion standard cubic feet of gas, with a best estimate of 247 billion cubic feet. In addition, there is potential for condensate recovery estimated between 1.2 and 12.6 million stock tank barrels, with a best estimate of 5.0 million barrels. These figures are considered comparable in size to the contingent resources of the Rafael reservoir, which currently underpins the Rafael Gas Project. The estimates derive from probabilistic methods using detailed geological and geophysical data and adhere to industry-recognized evaluation principles, as confirmed by a qualified reservoir engineer with extensive experience in petroleum resource assessment. Buru’s CEO, Thomas Nador, emphasized the significance of the discovery in reinforcing the investment case for the Rafael Gas Project, noting that its conservative resource assumptions leave ample room for upward revision. With domestic gas security and affordability high on the agenda for governments, resource developers, and consumers, the Flying Fox prospect is seen as having the potential to deliver additional resources and maintain robust gas flow rates over time. However, further exploration, appraisal, and evaluation will be essential to confirm the extent and moveability of the hydrocarbons present. In weighing the sentiments arising from this announcement, a bullish perspective is supported by the prospect’s sizeable estimated reserves, the strategic advantage of augmenting an existing development asset, and strong market interest in secure domestic gas supplies. On the bearish side, early-stage exploration risks remain inherent, with uncertainties tied to technical, economic, and regulatory factors that could impact the successful commercialisation of the Flying Fox prospect. This juxtaposition of significant potential with the typical risks of deep exploration underscores the balanced outlook for Buru Energy Limited as it advances towards further testing and development.