Ann: Operations Update - Rafael 1 exploration well, page-2

GOOD NEWS:

Buru Energy Limited (Buru Energy) is pleased to provide the following update on Buru Energy’s Canning Basin Rafael 1 well drilling operations.
Since the last report the well has been circulated with increasing mud weight to control the gas influx encountered during drilling of the 8½ inch (216mm) hole.

To ensure well bore stability is maintained in the forward section of the well below its current depth of 3,872 metres, the decision has been taken to run 7 inch (178mm) casing before drilling ahead in 6 inch (152mm) hole. The casing running operation is currently underway.
Prior to running casing, wireline logs were obtained over the 8½ inch open hole section of the well. These logs indicate the presence of vugular dolomite and zones where hydrocarbons are present, most likely wet gas, consistent with the gas measured at surface
from the circulated influx.

The logs and pressure data are subject to further interpretation but provide encouragement for the continued drilling program prior to flow testing the well.