Buru Energy Provides Updates on Drilling at Victory 1, Senagi 1 Wells in WA

Buru Energy Limited provided Thursday the following weekly update on drilling operations at the Victory 1 well in EP 457 in Western Australia as at 06:00hrs, Oct. 29 (AWST).

Since the last progress report, the well has been drilled ahead in 4.75 inch (121 millimeter) hole to a total depth of 8,530 feet (2,600 meters) with continued complete lost circulation. As no sample returns have been obtained no further information is available on hydrocarbon indications or lithologies penetrated since the last report.

As at 06:00 hours today, wireline logs were being acquired. A decision on whether the well will be tested will be made once the logs have been evaluated, noting that the amount of water lost to the well (in excess of 10,000 barrels) is likely to make log interpretation challenging.

Should a testing program be undertaken the well will be completed with 3.5 inch production casing and the program will be configured so as to maximize the chance of recovering oil at the lowest operational cost. The completion and testing operation is expected to take up to four weeks.

Victory 1 is located in exploration permit EP 457, 115 miles (185 kilometers) east of Broome and 53 miles (85 kilometers) southeast of Buru Energy’s producing Ungani Oilfield. Equity and contributing interests in the well are as follows:

• Buru Energy: Equity Interest - 37.5 percent; Contributing Interest - 41.67 percent
• Mitsubishi Corp. (Mitsubishi): Equity Interest - 37.5 percent; Contributing Interest - 41.67 percent
• Rey Resources: Equity Interest - 25.0 percent; Contributing Interest - 16.67 percent

Separately, Buru Energy gave a weekly update on drilling operations at the Senagi 1 well in EP 459 in Western Australia as at 06:00hrs, Oct. 29 (AWST).

Since the last progress report, the well was drilled ahead in 6.125 inch (156 millimeter) hole, and 5 inch (127 millimeter) casing was run and cemented to 2,490 (759 meters). The well has then been cored ahead in 3.98 inch (101 millimeter) hole to a depth of 2,966 feet (904 meters) as at 06:00 hours today.