Ann: Weekly Drilling Report - Ungani 4, page-30

Hi Spec
You are right the earlier announcement did say subject to farmout/funding .
That means to me that it is subject to either a farmout OR funding .He was saying at the time that BRU did not have the money to drill these prospects .

Things have changed since then .BRU got an additional $3.6 million in the Capital raising .
The increase in POO since the announcement of the cash margin of A$25 to 30 is about A$9 a bbl or A$9 million a year when producing at 3000 bopd .

Yes we should not get ahead of ourselves we are not putting 3000 bbls a day into the tank at WBH yet but if things keep running to plan we should be after U4 and U5 are on production .

The increase in the oil price alone pays for one exploration well a year .
Our gurus of TA say POO more likely to go up than down in the next year .

BRU would have negotiated very hard in the divorce from Mitsubishi .I think Eric did a brilliant deal for his shareholders .
You could tell the sense of relief ."Buru Unleashed" .

Eric knows very well that another Ungani trend discovery will do for BURU .
I don't think he will give half of that away easily .

I hear the pain and the caution of LT holders .
Eric as the biggest single holder and responsible for running the company would have felt more psychological pain than anyone .
I can hear his confidence returning in this last announcement .

For me drilling at least a couple of the Ungani trend targets 100% is an asymmetric risk .
If one is a discovery then BRU rerates and becomes self funding for oil exploration and the risk of CR largely disappears and the company is headed back to the S&P 200.
If a hole is dry we have spent about three months of cash flow .

So I respectfully disagree with you .

If Buru makes the decision to drill Ungani trend wells we need to back them up , even when the inevitable dusters are drilled .