Well Operations Update - Ungani Far West 1 Buru Energy Limited...

Well Operations Update

- Ungani Far West 1 Buru Energy Limited (Buru Energy) provides the following update on the Ungani Far West 1 well. Since the last report of 4 February the wireline logging and pressure testing program has been completed. The quality of the wireline logs is excellent, but definitive pressures were not able to be obtained principally due to the vugular nature of the dolomite reservoir. The uppermost 15 metres of the reservoir zone is interpreted from logs to be oil saturated, has significant vugular development, and had oil bleeding from cores.

The wireline log interpretation suggests, however, that the potential oil column extends a further 26 metres to a total of approximately 41 metres. There is further potential pay in a lower zone that also has significant vugular and fracture development. During the course of the logging program further oil influx occurred with four barrels of 41 degree API oil being recovered at surface. The current operation is running a completion string which will be configured to determine the height of the oil column and the productivity of the well. Results of the tests will become available over the next two weeks.

The well is located on an all weather drilling pad approximately one kilometer off the Ungani access road within Production License L21, 97 kms east of Broome and 3.3 kms southwest of Buru Energy’s Ungani Oilfield in the Canning Basin of northwestern Australia. The well is being drilled under the terms of the Ungani Development Funding agreement with Diamond Resources (Fitzroy) Pty Ltd. Equity and contributing interest for the well are as follows: Company Equity Interest Contributing Interest

Buru Energy 50% 0% Diamond Resources (Fitzroy) 50% 100% Buru Energy’s Executive Chairman, Eric Streitberg said: “We are delighted with what we have seen from the well to date. There are obvious zones of well developed vugular porosity and high gravity oil is coming into the well bore during routine operations. It took a production test to establish just how big Ungani was when it was discovered and the same applies to Ungani Far West.

The important thing about this well is that it confirms that the Ungani Dolomite reservoir system is extensive and that the petroleum system is working well – we are particularly pleased with the quality of the oil we have seen from this well to date and also from the recent test at Ungani North. Ungani crude is highly valued in SE Asian markets and this oil is also likely to sell at a premium. We look forward to getting the test results over the next couple of weeks.”