Buru Energy Operational Update

Buru Energy Limited (ASX: $BRU) has announced the identification of a high potential shallow prospect in EP 428, partly overlying the Rafael 1 gas and condensate accumulation. The company is planning the drilling of the Rafael Shallow prospect in the 2024 operating season. Buru's internal assessment indicates a range of between 3.2 MMstb and 79 MMstb of recoverable liquids with a Best Estimate of 19 million barrels recoverable.

CEO Thomas Nador's Commentary on Operational Update

The acquisition of the Rafael 3D seismic survey has provided valuable insights into both the Rafael gas and condensate accumulation and the prospectivity of the broader Rafael region. We are currently interpreting in-house the insights from the 3D seismic survey on the Rafael accumulation, and specialised consultants are also conducting additional work on reservoir quality, genesis, and the internal geometry and stratigraphy of the reservoir. Due to the additional technical work, the conclusion of the partner selection process will be delayed, resulting in the deferral of on-ground Rafael appraisal activity to the 2025 operating season. However, with the potential to drill the Rafael Shallow prospect later this year with a smaller rig, we are planning to keep our appraisal and exploration momentum going. We are also actively working to reduce capital costs and time frames for the initial Rafael development with additional options to the Phase 1 program being developed.

Operational Update Summary

Buru Energy's operational update highlights the identification of a high potential shallow prospect in EP 428, named Rafael Shallow, with planning underway for drilling in the 2024 operating season. The company's CEO, Thomas Nador, emphasized the valuable insights gained from the 3D seismic survey and the ongoing technical work to enhance the prospectivity of the Rafael region. The partner selection process for the Rafael gas and condensate discovery has been deferred, and the conclusion will be delayed until the technical work is completed. The company is focused on reducing capital costs and time frames for the initial Rafael development, with additional options to the Phase 1 program being developed. Buru Energy is also actively engaging with third parties on the forward plan for the Ungani oilfield, including the potential drilling of the Mars well. The identification of the high potential Rafael Shallow prospect has the potential to add significant value to Buru's portfolio, and the company is confident in the availability of a suitable rig to drill the prospect during the 2024 operating season.