Buru Energy Limited : Operations Update

ASX Announcement

Buru Energy Limited

ABN 71 130 651 437

Level 2, 88 William Street

Perth, Western Australia 6000

Ph: [phone]

Fax: [phone]

www.buruenergy.com

ASX: BRU

30 December 2013

BURU OPERATIONS UPDATE

Buru Energy Limited ("Buru") is pleased to provide the following update on operations which incorporates a number of significant milestones.

Highlights

• Ungani 2 well producing very strongly

• Ungani 1 clean-up operations commenced

• Contract concluded for first sale of 40,000 barrels of Ungani crude into the Asian market

• First oil lifting from Wyndham Port expected in early January

• Crusader 405 rig mobilised to site and Ungani 3 to be spudded shortly

Ungani production

The Ungani 2 well has been producing strongly with the rate constrained as planned to up to 1,000 bopd to align with current trucking capacity. The well has substantially cleaned up and is now producing dry oil with very small amounts (<0.3% by volume) of the completion fluid used during the recent workover operations.
With the strong performance of the Ungani 2 well, the clean-up and flow testing of the Ungani 1 well was postponed until after the Christmas holiday period, and operations have now recommenced to bring the well onto production.

Oil production and shipment

The oil trucking and offloading system has been operating efficiently with no problems or incidents, and there are currently some 10,000 barrels of oil in storage at the Wyndham Port facility.
Another milestone has also been achieved under the marketing agreement with Mitsubishi, with the first 40,000 barrels of Ungani oil being sold into the Asian market under a flexible delivery schedule. The first lifting from Wyndham Port is expected to occur in early January.
As Ungani 1 is cleaned up and brought on line, additional trucking capacity will be brought on line with the objective of increasing production to the planned rate for this phase of the project of 1,500 bopd.

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Ungani 3

The Crusader 405 rig move from the southwest of Western Australia to the Ungani 3 site is complete and rig up is expected to be completed shortly.
On current projections it is anticipated that the well will be spudded in the first week of January 2014.

For inquiries please contact:

Chris Bath Company Secretary

Telephone: [phone]

Freecall: 1800 337 330

Email: [e-mail]

About Buru

Buru Energy Limited (ASX Code BRU, ASX 200) is a Western Australian oil and gas exploration and production company headquartered in Perth with an operational office in Broome. The Company's petroleum assets and tenements are located onshore in the Canning Basin in the southwest Kimberley region of Western Australia. Its flagship high quality conventional Ungani Oilfield project is owned in 50/50 joint venture with Mitsubishi Corporation. As well as Ungani, the Company's portfolio includes potentially world class unconventional gas and oil resources.

The company's goal is to deliver material benefits to its shareholders, the State of Western Australia, the Traditional Owners of the areas in which it operates, and the Kimberley community, by successfully exploring for and developing the petroleum resources of the Canning Basin.

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