24th May 2006 10:32
Burren Energy PLC24 May 2006 24 May 2006 Burren Energy PLC ("Burren" or "the Company") AGM Statement The following statement was made by Brian Lavers CBE, retiring Chairman ofBurren Energy PLC, at today's Annual General Meeting of the Company: "2005 was again a very successful year for Burren with working interestproduction increasing by over 70% to 31,280 bopd, net operating cash flow ofUS$277.8 million and record pre-tax profits of US$ 254.6 million, almosttripling from 2004. The Company maintained its status of being one of the lowestcost operators amongst its peers with a per barrel production cost of just$2.27. The focus remains the continued development of the Company's two large producingfields in Turkmenistan and Congo, where water-injection projects starting thisyear have the potential to significantly increase recoverable reserves. Inaddition approximately 20 appraisal and exploration wells are planned to bedrilled during the rest of the year in Turkmenistan, Congo, Egypt and India. Group production for the first four months of 2006 has averaged 34,700 bopd on aworking interest basis (Congo share 57%) with a net average realised price of$60.80 per barrel. The Group has no oil hedges in place. In Turkmenistan seven workover and drilling rigs are in operation engaged inboth development and exploration work. The pilot water-injection project on theBurun field has started with promising initial results achieving injectivityrates of 1000 bwpd and 4000 bwpd into the deep and shallow reservoirsrespectively. We have also received Government approval to start earlyproduction from the recent Nebit Dag East oil discovery. In Congo between four to five drilling rigs will remain drilling production,injection and exploration wells including five exploration wells in the Kouilouand the recently ratified La Noumbi (Burren interest 37%) licences. Theinstallation of water-injection facilities on M'Boundi is on track with initialstart-up scheduled for the fourth quarter of this year. In Egypt the acquisition of new 3-D seismic is underway on the East Kanayislicence (Burren interest 100%) to define deep Jurassic potential whilstexploration drilling continues with the imminent spudding of the thirdCretaceous exploration well. The first two Cretaceous exploration wells havebeen plugged and abandoned. In Yemen we have now received Parliamentary ratification for our 92% workinginterest in the onshore Block 6 and the next step will be to acquire 3D seismic.The Company's partner and Operator in the offshore Block 50 in Oman will also becarrying out 2D seismic in the third quarter and in India we continue to workclosely with HOEC as they plan to drill three high impact wells in the offshoreCauvery basin also in the third quarter of this year. With cash balances of over $175 million, robust cash generation from two coreproducing areas, no debt and a strong balance sheet, the Company is well placedto achieve its next phase of growth. This is my last Annual General Meeting as Chairman of Burren. In my seven yearsas Chairman I have seen the Company progress from a small oil and gas companyinto one of the largest listed UK independent oil companies. I look forward tocontinuing to be a part of the Group's development in my capacity as an on-goingnon-executive director. Keith Henry, my successor, has immense knowledge andexperience of our industry, and I commend him to you." Enquiries: Burren Energy Tel: 020 7484 1900 Finian O'Sullivan, Chief Executive Officer Andrew Rose, Chief Financial Officer www.burren.co.uk Pelham PR Tel: 020 7743 6676 James Henderson Alisdair Haythornthwaite This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Burford Capital