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Testing operations update at Ungani Far West 1

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Oilfield Technology,

Buru Energy Limited (Buru Energy) has provided the following update on the testing operations on Ungani Far West 1 well:

The well has been configured to allow testing of three zones, the uppermost zone which is interpreted from logs to be oil saturated with significant vugular porosity development, a middle zone which has calculated oil saturations from wireline logs, and the lower zone which has well developed vugular porosity in cores but ambiguous calculated oil saturations.

The test over the upper zone has continued with the well flowing at rates of up to 1680 bbls of fluid per day with 50% to 70% high quality 41.6 degree API oil. The well is flowing strongly with increasing surface pressures.

Given the high flow rates and limited onsite oil and water storage it has been decided to shut the well in for a 24 hour pressure buildup and a static gradient pressure survey which should provide information about the size of the oil column and the source of the water influx.

The forward operation is to review the data from the shut in period and subject to this review, either continue with the test of the upper zone or move to test the middle zone.

The well is located on an all weather drilling pad approximately one km off the Ungani access road within Production License L21, 97 km east of Broome and 3.3 km southwest of Buru Energy’s Ungani Oilfield in the Canning Basin of northwestern Australia.

The well was drilled under the terms of the Ungani Development Funding agreement with Diamond Resources (Fitzroy) Pty Ltd.

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Adapted from a press release by Louise Mulhall

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