Ann: Operations Update - Praslin 1 Exploration Well, page-2

Dry bugger !

Operations Update
- Praslin 1 Exploration Well www.buruenergy.com Buru Energy Limited (Buru Energy) provides the following update on operations at the Praslin 1 well as at 06:00hrs, 1 October 2015 (AWST). Swabbing operations have now been completed after recovering some 500 barrels of lost drilling fluid followed by formation fluid similar to the formation fluid at Ungani, but with no indications of moveable hydrocarbons.

Fluid influx during swabbing suggests that the well has well developed porosity and permeability. The well will now be suspended for further evaluation including possible use as a water injection point. Praslin 1 is located 90kms east of Broome and 15kms west of Buru Energy’s producing Ungani oil field. Buru Energy and Mitsubishi Corporation each have a 50% equity and contributing interest in the Praslin 1 well and in EP391. Executive Chairman’s comments: “

This is obviously a disappointing result, but the extension of the Ungani Dolomite with well developed reservoir characteristics some 15kms along trend is encouraging. We will now have a close look at the data to try and determine why the well did not have any moveable oil in the reservoir. Our second well on the Ungani trend, Victory 1, is progressing well and we would hope to see some results from that well in the next week.”