Ann: Update Drilling Report - Ungani 4, page-32

Hi Invest, as others have pointed in over the past few weeks (plus looking at the shortman website), the shorts have not really been a factor in the share price appreciation. It's all about Ungani, the market likes BRU now and how it has carefully succeeded in meeting every operational target this year (a very new style for BRU I might add). The OOIP for the field is currently estimated to be over 32m barrels. With a 3C of around 18m barrels recoverable.

Today's announcement will hopefully ensure that the 2C of 6.6m barrels is now upgraded to close to 8.5-9m barrels (and in turn, this result will hopefully/finally allow BRU to book 2P reserves). Which in turn should allow BRU to borrow the funds required to build their planned Broome export terminal, which will save around $10 AUD per barrel, or at 1m barrels a year, $10m in savings p.a. Plus (honestly not sure which is more important), the U4 well should be able to produce at approx 1000bopd which will see BRU able to produce at at least 2500bopd, compared to 1500bopd currently. Fields costs are basically static, so... more oil means more profit.

Until we get the results of the wire logs, nothing is 100% certain of course, but... on face value, Ungani 4 well has proven the field extends at least 500 metres, with up to 60 metres of pay! Plus, hopefully, it will also be able to access to un-drained oil in the attic.

Oh and another thing that might be luring buyers in, is that now that we are fairly certain Ungani is a big field, and BRU is going to make a fair amount of money producing from it for years to come, the ongoing farmout discussions will hopefully now see Eric with a stronger hand than before.

Also, the drilling crew clearly stepped it up after the Monday announcement, so they will hopefully be able to spud Ungani 5 before the end of Nov (they are really only a couple of days behind their original schedule, so think around 30th Dec might be doable). Which is fine, as BRU has in past years, drilled up until mid to late January giving them plenty of time to finish the well.

@JustSayin - I got the official ok from the wife, the kennel now just has the dog in it.