Buru Energy : Operations Update

ASX Announcement

21 October 2019

Operations Update

Miani 1

The Miani 1 well has been drilled ahead to a total depth of 2,689 metres as of 6:00 pm on 20 October.

The well encountered a thick section of tight limestones with intermittent dolomite and hydrothermally mineralised zones. The anticipated sections of vuggy porosity from hydrothermal alteration do not appear to be developed in the well.

Minor hydrocarbon shows have been encountered in several zones and these will be ASX:evaluatedBRU by the planned wireline logging program.

The current operation on the well is pulling out of the hole in preparation for running wireline logs.

A further update will be provided after the wireline logs have been obtained and interpreted.

Ungani 7H: Coil tubing operations

The equipment required for the planned underbalanced coil tubing drilling operations on Ungani 7H and Ungani 6H has been mobilised to the Ungani location.

The contractors on site include the coil tubing unit, directional drilling services, testing and well control, fluid (including crude oil) pumping services and camp and catering services.

Operations on Ungani 7H have commenced after successful rigging up and pressure testing of all equipment. The coil tubing string has been run in the hole and the current operation is drilling out the casing shoe using water as the drilling fluid. Crude oil from the Ungani facility will be introduced into the drilling system for the underbalanced drilling of the horizontal reservoir section once this initial operation is completed.

It is planned that the first horizontal section will be completed during the coming week and a second lateral is then planned to be drilled from the same wellbore.

At the completion of the Ungani 7H operations the coil tubing unit will be moved to the Ungani 6H well to run the expandable liner. The personnel and components that are not required for the liner operation will be demobilised while this operation is taking place and will be remobilised once the liner operation is completed, which is expected to take 7 to 10 days.

It is expected that all of these operations will be completed by the end of November and the Ungani 6H and 7H wells will then be immediately brought onto production.

Visit www.buruenergy.comfor information on Buru Energy's current and future activities.

For investor inquiries please contact Buru Energy:

Telephone: [phone]

Freecall: 1800 337 330

Email: [e-mail]

1

Level 2, 16 Ord St West Perth WA 6005

1800 337 330

[e-mail]

ABN 71 130 651 437

Qualified Petroleum Resources Evaluator Statement

Except where otherwise noted, information in this release related to exploration and production results and petroleum resources is based on information compiled by Eric Streitberg who is an employee of Buru Energy Limited. Mr Streitberg is a Fellow of the Australian Institute of Mining and Metallurgy and the Australian Institute of Company Directors, and a member and Certified Petroleum Geologist of the American Association of Petroleum Geologists. He has over 40 years of relevant experience. Mr Streitberg consents to the inclusion of the information in this document.

Subsurface location of Ungani 7H and Ungani 6H

Coil tubing operations at Ungani7H

2

Level 2, 16 Ord St West Perth WA 6005

1800 337 330

[e-mail]

ABN 71 130 651 437