Buru Updates on Drilling Ops at Ungani Far West 1 Well in Western Australia

Buru Energy Ltd. provided Thursday the following weekly update on drilling operations at the Ungani Far West 1 well in Western Australia as at 06:00 hrs, Dec. 24.

Since the last progress report, the well has been drilled ahead from intermediate casing depth of 4,196 feet (1,279 meters) in 6.125 inch (156 millimeter) hole to the current depth at 06:00 hrs today of 5,807 feet (1,770 meters). The well will continue to drill ahead to the top of the Ungani Dolomite reservoir below 6,890 feet (2,100 meters) where 5 inch (27 millimeter) casing will be run and Atlas 2 Rig will then be released. Specialist coring rig DDH1 Rig 31 will then be rigged up and conduct coring operations through the Ungani Dolomite reservoir section.

The well is located on an all weather drilling pad approximately 0.62 mile (one kilometer) off the Ungani access road within Production License L21, 60 miles (97 kilometers) east of Broome and miles (3.3 kilometers) 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.

• Buru Energy: Equity Interest - 50 percent; Contributing Interest - 0 percent
• Diamond Resources (Fitzroy): Equity Interest - 50 percent; Contributing Interest - 100 percent