Buru Energy Spuds Sunbeam 1 Well in Permit EP 129 in Canning Basin

Buru Energy Ltd., a Perth-based oil and gas exploration and production company, reported Tuesday that drilling operations on the Sunbeam 1 well in EP 129 in Western Australia commenced at 19:30 hours Jan. 25 (AWST) using DDH1 Rig 31.

The Sunbeam 1 well is located in exploration permit EP 129, and completion of the well will satisfy the Year 4 work commitment on that permit.

Buru Energy has a 100 percent equity interest in the well and in EP 129. The well is located some 53 miles (85 kilometers) south east of Derby and some 11 miles (18 kilometers) south of the Gibb River Road.

The well has a maximum programmed total depth of 3,937 feet (1,200 meters) and is expected to take some 16 days to drill.

The Sunbeam 1 well primary objective is conventional oil reservoirs in the early Permian aged Grant Formation which is anticipated to be comprised of channel sand reservoir intervals enclosed by argillaceous siltstones.

Buru Energy’s Executive Chairman, Eric Streitberg, commented on the commencement of drilling operations:

“Sunbeam 1 is the second well we will be drilling with the DDH31 rig. The previous well we drilled with the rig, Commodore 1, was completed on budget with no significant issues. We are very confident that the Sunbeam well will confirm that we have made a major step change to cost effective exploration drilling in the wider Canning Basin.

The Sunbeam well is located in an area of the basin that has seen little recent exploration, but it is where all the initial oil discoveries in the basin were made, including in the nearby Blina and Sundown conventional oilfields. The prospect has excellent upside and could be easily developed given the existing infrastructure in the area.”

Separately, Buru provided the following update on the Company's operations at the Yulleroo site in Western Australia.

Yulleroo 2 Valve Replacement

The work on the Yulleroo 2 wellhead was commenced on Tuesday Jan. 20 and successfully completed on Thursday Jan. 22. The damaged valve was removed and taken into the custody of the Department of Mines and Petroleum's (DMP) safety branch and will be inspected by a specialist valve service company.

The integrity of the well casing and tubing and down-hole components was confirmed during the operations. The opportunity was also taken to modify the well head configuration by removing components that could be susceptible to further deliberate damage.

DMP inspectors have confirmed that the operation was carried out fully in accordance with all regulations and no incidents or non-conformance of any kind were identified.

Yulleroo Site Environmental Work

The rehabilitation of the water retention ponds used in the drilling of the Yulleroo wells was also commenced, and the burying and capping of the inert drill cuttings from the exploration drilling process was completed on Sunday Jan. 25 by a local indigenous contractor. This work was completed in full accordance with the DMP approved environment plan. Senior Yawuru Traditional Owners inspected this work as it was being carried out.

Buru Executive Chairman Eric Streitberg said:

"This operation has been a complete success at every level. We are also pleased to report that the well was in excellent condition, apart from the damaged valve. The site rehabilitation work is also proceeding in accordance with our approvals, and the visit of the senior Yawuru Traditional Owners to inspect the work was most welcome."

"Buru Energy undertakes regular inspections and well integrity verification of all our suspended wells, including the other Yulleroo wells, and we will be reviewing security at all our sites to ensure such incidents are not repeated."


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