Buru Energy (ASX:BRU) has received approval by Western Australia's Department of Mines, Industry Regulation and Safety of its Declaration of Location application for the Rafael 1 gas and condensate discovery in the Canning Basin.

The approval gives Buru Energy up to two years to apply for a Production Licence or Retention Lease.

The company said the discovery is considered valuable in the transformation of the Kimberley energy system and addition to WA's resource development.

It also said a 3D seismic survey of the resource is planned for the third quarter of 2023, and preparations are underway for appraisal drilling in 2024.