Buru Energy to Repair Damaged Valve at WA's Yulleroo Gas Project

Buru Energy Ltd. reported Thursday that it noted public statements made by the Western Australian Department of Mines and Petroleum (DMP) in response to false allegations concerning a gas leak at the Company's Yulleroo gas project in Western Australia.

DMP officials inspected the site yesterday following claims by protestors that one of the Yulleroo wells was leaking a significant amount of gas.

DMP Petroleum Division Executive Director Jeff Haworth is quoted as saying:

"No gas readings were detected on the site initially. The inspection revealed there is some physical damage to a valve stem, which has been bent, and is the cause of a minor gas leak."

"Low level gas readings were detected around the well when the damaged valve was manipulated. The minor gas leak poses minimal risk and the valve will be repaired as quickly as possible."

"It appears at this stage that there has been no equipment or process failure by the company (Buru Energy)."

"The damage presents a serious concern if a third party has been involved. In light of the serious nature of the damage involved, the Department will be investigating further."

Buru Energy Executive Chairman Eric Streitberg said the DMP statements clearly contradicted claims by anti-gas protestors that there was a significant gas leak at the well for which Buru was responsible.

Streitnerg said Buru was also concerned by the fact that the video provided to the media was recorded by people who broke the law by accessing the fence compound at the well site.

"We would like to think that those who recorded the video are not responsible for the damage to the valve," he said.

The Yulleroo 2 well flowed at potentially commercial rates of gas and condensate after it was fracced in 2010 in a trial exploration program. The well is currently suspended and is inspected regularly.At Buru's last inspection of the site, the well head valve was not damaged.

Buru will be accessing the site regularly to undertake the repairs to the damaged valve and for continued essential maintenance and environmental monitoring, and to ensure the security of its existing infrastructure.


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