12th Aug 2005 07:00
Burren Energy PLC12 August 2005 12 August 2005 Burren Energy Plc ("Burren") Interest in M'Boundi Field and Kouilou Exploration Permit to be acquired by Societe Nationale des Petroles du Congo ("SNPC") Burren has entered into a conditional agreement for SNPC, the state-ownednational oil company of the Republic of Congo, to acquire an interest in or'farm in' to the Kouilou production sharing agreement ("PSA"), which includesthe M'Boundi field and the exploration rights to the Kouilou permit area. Burren will farm out 10% of its current 35% interest (i.e. reducing Burren'sresidual interest to 31.5%) for a net consideration of US$35 million, payable50% in cash and 50% via a rebate of profit oil accruing to SNPC under the termsof the PSA. Maurel & Prom ("M&P"), the operator under the PSA is also farming out 10% of itsinterests on similar terms. Upon completion SNPC will have a 10% interest in theKouilou PSA as a whole, with a 8.9% interest in the M'Boundi field. Completion of the transaction, which is still awaiting signature by the Ministerof Hydrocarbons, is conditional upon several matters, being primarily : a) The granting of a new development license for the M'Boundi field with a term of 20 years from the date of grant and an optional 5 year extension, in place of the current development license which expires in 2017 but may be extended for a further 5 years; b) The extension of the Kouakouala production license, which currently expires in January 2008, for a further 10 years ; and c) Certain consequential amendments being made to the joint operating agreement relating to the Kouilou PSA. Ratification by the Congolese parliament is required for certain of theconditions precedent to be satisfied : completion is expected later this year.In addition it is expected that parliamentary approval for the PSA governing theLa Noumbi permit area, which has been awaited for some time, will be procured,allowing exploration activity to commence around the end of 2005 / beginning of2006. ENQUIRIES: Burren Energy PLC Tel: 0207 484 1900Finian O'Sullivan, Chief Executive OfficerAndrew Rose, Finance Directorwww.burren.co.uk Gavin Anderson & Company Tel: 0207 554 1400Deborah 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 four principal regions: the Caspianregion of the former Soviet Union, West Africa, North Africa and through astrategic investment stake in the Hindustan Oil Exploration Company, India. Thecompany is listed on the London Stock Exchange ("BUR"). Burren's total proven & probable oil reserves as at 31 December 2004 were 245.5Mmbbls, on a working interest basis. In the Caspian region of Turkmenistan,Burren has a 100 per cent. working interest in the Nebit Dag PSA, which containsthe Burun oil and gas field with proven and probable oil reserves on a workinginterest basis of 129.1 Mmbbls. In the Republic of Congo (Brazzaville), Burrenhas interests in the M'Boundi, Kouakouala and Pointe Indienne fields withaggregate proven and probable oil reserves of 116.4 Mmbbls, again on a workinginterest basis. Significant exploration and development programmes are underwayin Turkmenistan and the Congo, and exploration is expected to commence in Egyptin 2005. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Burford Capital