Key Petroleum Ltd. : Buru Energy Operations Update (Including Cyrene-1)

ABN 71 130 651 437

Level 2, 97 William Street

Perth, Western Australia 6000

PO Box 7794, Perth

Cloisters Square WA 6850

Ph: 61-8 9215 1800

Fax: 61-8 9215 1899 www.buruenergy.com

Buru Energy Limited provides the following update on the Company's forward drilling and seismic
program and continuing operations at the Ungani EPT.

Drilling Program

Ungani North 1

The well has not yet reached the prognosed casing depth above the predicted Ungani Dolomite reservoir due to slow drilling rates, and delays due to minor mechanical issues. As at 18.00 hours on
6 November the well was at a measured depth of 2,492 metres, and the current operation was performing a bit trip prior to drilling ahead in the sealing shale above the predicted reservoir section. To date the well has penetrated a similar geological section to the Ungani wells, and it is expected to take up to another three days to reach the prognosed casing setting depth after the bit trip is completed.

Cyrene 1

This well is being drilled in the EP 438 permit and is targeting a conventional oil target in the Willara Formation carbonates, with an overlying section of Goldwyer Shale having unconventional prospectivity.
The conventional target in this well has the capacity to hold in the order of 5 million barrels of recoverable oil, if hydrocarbons are present. Importantly, the conventional play type being targeted in this well is interpreted as being extensive throughout the area based on seismic and historical wells data. A success at Cyrene 1 provides a strong likelihood that a regional conventional oil play may be able to be developed.
The unconventional target in this well is a 135 metre thick section of the Goldwyer Shale. The Goldwyer is present, regionally extensive, and has been penetrated by a number of wells on Buru's permits. The Goldwyer is interpreted to be in the oil window at the Cyrene location, with nearby wells having good oil shows in the section. The Goldwyer is also in the wet gas window in other areas of Buru's permits where it is buried deeper than at the Cyrene location. The EP 438 joint venture will be undertaking an extensive coring program to provide a full suite of modern data for analysis and evaluation of the Goldwyer at this location.
The EP 438 permit is held in joint venture by Buru, Mitsubishi, Key Petroleum Limited (Key) and
Indigo Oil Pty Ltd. Buru has delegated the role of operator to a subsidiary of Key for the sole purpose of executing and completing the drilling and testing program for the Cyrene 1 well.
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Following the satisfaction of obligations under a previously agreed farmin agreement, the interests in the EP 438 Exploration Permit will be as follows: