Buru Energy Limited has provided a weekly update on drilling operations at the Ungani-1 well as at 06:00hrs, 1 September 2011 (AWST).

The Ungani-1 well is the third well in the Buru - Mitsubishi Corporation (MC) 2011 Joint Exploration Program. Buru and MC each have a 50% interest in this well and in EP 391, with MC contributing 80% of the cost of the well under the terms of its farm-in agreement with Buru.

Since the last progress report, the Ungani-1 well has been drilled ahead in 12¼' hole to the section total depth of 1,997m in the top of the Laurel Formation carbonates and is currently being conditioned for logging and running of the 9?' intermediate casing.

In addition to the oil shows noted over the interval 945m to 970m in the Grant Sandstones, further oil shows and associated mud gas readings were noted in interpreted Anderson Formation sandstones over the interval from 1500m to 1530m.

The significance of mudlog shows of this nature in the Grant and Anderson Formations is difficult to determine in other areas of Canning Superbasin, and wireline logs and fluid samples and sidewall cores are necessary to evaluate if moveable hydrocarbons are present.

Increasing gas shows were also noted in the top of the Laurel Formation prior to the section total depth being reached. After completion of the evaluation and 95/8' casing program the well will be drilled ahead in 8½' hole through the Laurel Formation objective.

Ungani-1 is being drilled by Ensign Rig #32. It is expected to take 26 days to drill on a dry hole basis.

In accordance with its policy of releasing weekly drilling progress reports, the Company expects to issue a further drilling progress report on 8 September 2011, subject to any material events occurring in the meantime.

Tags: Buru Energy