Ann: Testing Operations Update - Ungani Far West 1, page-302

Hi Spec,

Thanks for the 2012 Casimir Report.

You've got to love those Canadians, they can spin a story faster than the highest speed on your top loader.

Ungani conven’l oil

"The region, with 4 drillable targets
close to Ungani plus 20 identified prospects has pot’l for a
gross risked (10%) resource of 300 mmbbls of recoverable oil​

(50% Buru), worth an est. $3.27/sh risked ($9.47/sh un-risked)."

Unconv’l Valhalla & Yulleroo regional tight-gas gamechangers

"With an independent
assessment of 332 bcf & 13.4 mmbbls gross at Yulleroo, & a
recent McDaniel P50 assessment of Valhalla at 1.9 billion boe
recoverable (50% to 100% W.I.), BRU has room to grow, worth​

$6.53/sh risked ($27.88/sh un-risked)."

Goldwyer shale

"Our target is driven by the value of Ungani, Valhalla & Yulleroo
($9.80/sh risked, $37.36/sh un-risked) and current working
capital, less a value for pipeline build-out costs. Goldwyer shale
exploration is currently a ‘free call option’ of up to $76/sh in a​

full prove-up case ($7.62/sh risked)."

On a more serious note.

Can you shed any light on this paragraph from the report.

"Should Buru be unable to meet its delivery obligations, it would be required to repay Alcoa
the $40mm amount, with the first of three installments in December 2013. Currently Buru
has placed $23.6mm in escrow for this purpose. The first two payments are in cash, with the​

final in cash or Buru shares, at the option of Buru."

The first instalment was due in Dec 2013. Do you know if that was paid and when the other two instalments are due? and is there still money sitting in escrow? and if there is how much?

Also you say above that

"As for the free carry BRU has, it has 3 stages. $9m per stage x 3. Production hurdles must be met for the 2nd and 3rd stage (3k bopd and 5k bopd)."

Can you please point me to a source for this information whenever you get some spare time (no rush). The Casimir report only says this about the BRU/Mitsubishi tie up.

"Buru and Mitsubishi each have a 50% interest in exploration permit EP​

391, and Mitsubishi was responsible for 80% of the cost of the first well."

Interestingly the report talks of horizontal drilling to be conducted on Ungani-2 in the future to "further optimize recoveries". Do you know if this horizontal drilling ever happened?

Also did Ungani-2 produce at 1,026 bbls/d after its completion and can anyone tell me what the actual annual production of oil has been from this well for all the years since completion?


Eshmun