Value Microcaps Motherboard

[10 bagger]

BUREF...

Regulatory News

REG-Burren Energy PLC Trading Statement
Released: 26/01/2005



RNS Number:7926H
Burren Energy PLC
26 January 2005


Burren Energy Plc
Pre-close Trading Update

Burren Energy Plc intends to announce its preliminary results for the year ended
31 December 2004 on 4 April 2005. Prior to entering the pre-results close period
Burren is providing the following guidance as to the Company's trading
performance in 2004 and prospects for 2005.

Group net production for 2004 averaged 14,200 bopd, an increase of 74% over 2003
(8,140 bopd). In Turkmenistan net production averaged 9,300 bopd compared with
6,770 in 2003, an increase of 37%, and net production from the Republic of Congo
(Brazzaville) ("Congo") averaged 4,900 bopd compared with 1,370 bopd in 2003, an
increase of 256%.

Group net production is currently just above 20,000 bopd, compared with 9,000
bopd in January 2004. Burren expects to have achieved net production of 24,000
bopd by the end of 2005 as a result of continued development drilling in both
Turkmenistan and Congo and without taking into account the impact of any
production arising from exploration drilling.

Cash flow before financing in 2004 was positive despite a doubling of capital
expenditure compared with 2003. Cash balances at the year end were £21 million
and debt (including finance leases) was £4.3 million. The debt is all
attributable to the shipping business and is not guaranteed by the parent
company.

In 2005 Burren intends to invest approximately £100 million on its existing
projects of which approximately a quarter will be exploration-related.
Geographically, 50-55% of this investment is expected to be spent in
Turkmenistan, 40-45% in Congo, and a maximum of 5% in Egypt. In all up to 60
wells could be drilled, of which up to 17 could be exploration wells (the
majority of which will be in Turkmenistan). This compares with 29 wells in 2004
of which only one was exploration.

During 2005 Burren will continue to advance negotiations with the Turkmen
authorities regarding a gas sales contract for its gas production.

The Company has engaged Ryder Scott, the Houston-based petroleum consultants, to
perform an independent audit of its oil reserves as at 31 December 2004, the
results of which are expected to be made public on or before the preliminary
results announcement date.

A review by individual operation follows:

Turkmenistan

Nebit Dag (100% working interest. Operator : Burren)

In Turkmenistan, current production is approximately 18,000 bopd gross, 11,000
bopd net to Burren. In 2004 10 development wells were drilled on the Burun field
of which 7 were shallow wells to depths less than 1500m. The 4 most recent
shallow wells, drilled since October, are currently producing an average of 450
bopd per well. The workover programme continued throughout the year. At year end
there were 115 producing wells in on the Burun field, with a further 40 wells
shut in.

In 2005 Burren intends to run a continuous programme of shallow drilling for up
to 15 wells, and to drill up to 6 deep development wells on the Burun field.

3D seismic over a 700 sq. km area of the license area outside the Burun field
has been acquired and processed, and interpretation is expected to be complete
by the end of April to enable the selection of locations for exploration
drilling. Up to 12 deep and shallow exploration wells are intended to be drilled
this year, and negotiations are advanced to contract a second deep drilling rig
for this purpose. An early drilling project will be to re-enter and test the B60
exploration well on the south flank of the Burun field.

Despite a significant increase in capital expenditure compared with 2004, Nebit
Dag is expected to continue to generate substantial free cash flow in 2005 for
use by the Group for other investment opportunities.

Republic of Congo (Brazzaville)

Kouilou / M'Boundi (35% working interest. Operator : Maurel & Prom)
Kouakouala (25% working interest. Operator : Maurel & Prom)

Current gross production from Congo is 38,000 bopd , 9,300 bopd net to Burren.
36,000 bopd is from M'Boundi (22 wells in production) and 2,000 bopd is from
Kouakouala (4 wells in production).

In 2004, 17 wells were completed on M'Boundi and 1 on Kouakouala, and there are
now 4 rigs in operation in these fields. The three most recently drilled wells
in the M'Boundi field are currently producing more than 4,000 bopd each. In 2005
3 rigs will drill continuously on M'Boundi, with up to 22 development wells
planned. Facilities upgrade will continue in order to ensure gross production
capacity of 60,000 bopd, and pilot water injection programmes will be initiated
in Kouakouala and, subsequently, on M'Boundi.

As well as a high-resolution aeromagnetic survey over the whole of the Kouilou
license area, a 230 sq. km. 3D seismic survey has nearly been completed over
possible extensions to the M'Boundi field to the north-west and south-east, the
results of which are expected to have been interpreted by mid year. Within the
rest of the Kouilou license area it is intended to shoot 2D seismic during the
first half of 2005 over several prospects, the results of which should be
available during the second half of the year.

Up to four exploration wells are expected to be drilled within the Kouilou area
during the year, of which two will be sited to test the northern and southern
extent of the M'Boundi field.

The PSA relating to the Noumbi permit to the north of Kouilou was signed on
behalf of the Congolese Ministry of Hydrocarbons in 2004 and is awaiting
parliamentary ratification. Burren expects to be in a position to commence
exploration activity during 2005.

Egypt

East Kanayis (100% working interest)

Following signature of the PSC for the East Kanayis block in Egypt's Western
Desert in September, an office has been established in Cairo and work is well
advanced to prepare for seismic acquisition and drilling, with spud of the first
exploration well intended around the middle of 2005.

Applications have been made for 3 other blocks in recent licensing rounds, the
results of which are still awaited.

Shipping

During 2004 Burren acquired 3 tugs and barges with a combined deadweight freight
capacity of 10,500 MT for operation in the Russian river system. Overall,
freight carried in 2004 was below expectations, primarily due to the unscheduled
closure of the Volga-Don canal for a month in the autumn.

The shipping business is no longer considered core to Burren and the Company is
working towards its disposal.

Finian O'Sullivan, Chief Executive of Burren, commented:

"Burren has had an excellent year with significant growth in production
delivered across the business, in particular from our assets in West Africa.

"The company expects that ongoing development and exploration drilling
programmes planned in Turkmenistan and the Congo over the new financial year
will further drive performance as well as supporting exploration operations in
our new geographical area of Egypt.

"The Group is on track to deliver a record performance for the year and the
Board remains confident of the prospects for growth going forward."

ENQUIRIES:

Burren Energy PLC Tel: [phone]
Finian O'Sullivan, Chief Executive Officer
Andrew Rose, Chief Financial Officer
www.burren.co.uk
------------------

Gavin Anderson & Company Tel: [phone]
Deborah Walter / Charlotte Stone

Notes to Editors

Burren Energy is an independent oil and gas exploration and production group,
headquartered in London. It is focused on two principal regions: the Caspian
region of the former Soviet Union and West Africa, with recently added
exploration acreage in Egypt. The company is listed on the London Stock Exchange
("BUR").

Burren's total proven & probable oil reserves as announced on 5 April 2004 were
133 Mmbbls, (net to the Group on an entitlement basis). In the Caspian region of
Turkmenistan, Burren has a 100 per cent. working interest in the Nebit Dag PSA,
which contains the Burun oil and gas field with net proven and probable oil
reserves at 5 April 2004 of 95 Mmbbls. In the Republic of Congo (Brazzaville),
Burren has working interests in the M'Boundi, Kouakouala and Pointe Indienne
fields with aggregate net proven and probable oil reserves at 5 April 2004 of 38
Mmbbls, of which 36 million barrels were in M'Boundi. Significant exploration
and development programmes are underway in Turkmenistan and the Congo.

This announcement contains certain operational and financial information in
relation to 2004 which subject to final review and has not been audited.
Furthermore it contains certain forward-looking statements which are subject to
the usual risk factors and uncertainties associated with the oil & gas
exploration and production business. Whilst the Company believes the
expectations reflected herein to be reasonable the actual outcome may be
materially different owing to factors either within or beyond the company's
control, and accordingly no reliance may be placed on the figures contained in
such forward looking statements.



This information is provided by RNS
The company news service from the London Stock Exchange