Buru Updates on WA Operations, Including Damaged Valve at Yulleroo Project

Buru Energy Ltd., a Perth-based oil and gas exploration and production firm, provided the following update Tuesday on the Company's operations in Western Australia.

Yulleroo 2 Valve Replacement

Work has commenced on the replacement of the damaged valve on the Yulleroo 2 well head with the mobilization of Buru staff, specialist contractors and Department of Mines and Petroleum (DMP) inspectors to site. It is expected that this work will be completed in the next two days. Once removed, the damaged valve will be taken into the custody of the DMP safety branch and will be inspected by a specialist valve service company.

Forward Drilling Program

The DDH1 drilling rig has been mobilized to the Sunbeam 1 drilling location and it is expected to spud the well later this week, dependent on weather. Further details of the well will be made available at the time of the spud.

It is currently anticipated that the rig will be stacked at the conclusion of the Sunbeam 1 well and the drilling program will resume in the next quarter once the dry season commences.

Ungani Test Program

The DMP has approved the continuation of the test program at Ungani for a maximum of three months subject to a number of conditions in regard to the format of the testing program. Wireline work to retrieve pressure gauges has been undertaken, and as part of the continuing test program further work will be undertaken to investigate the cause of an apparent tubing blockage in the Ungani 1 well which is currently producing up the annulus.

The field is currently shut-in due to heavy rains affecting the access road.

Environmental Program

Buru continues to implement its forward-looking environment program that includes monitoring and rehabilitation of active work sites and legacy issues.


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