19th Mar 2007 07:03
Burren Energy PLC19 March 2007 19 March 2007 Burren Energy Plc ("Burren" or the "Company") Proposed Acquisition of Further Interests in the M'Boundi Field and Kouilou Licence Burren Energy Plc announces it has signed an agreement with Eni Congo SA ("Eni"), a wholly owned subsidiary of Italian group Eni S.p.A, to acquire anadditional 5.5% interest in the M'Boundi oil field in the Republic of Congo ("Congo") and a 2% interest in the surrounding Kouilou exploration license. Theeffective date is 1 January 2007. The total transaction price, payable in cash,amounts to US$154 million and will be financed from Burren's existing cashresources. On a pro forma basis, assuming the transaction had occurred with effect from 1January 2006, these additional interests would have added US$17 million toBurren's 2006 net profits and US$36 million to gross assets at year end.Burren's 2006 working interest production would have increased by 9% and yearend reserves by 7%. This acquisition is contingent upon the successful completion of Eni'sacquisition from Maurel & Prom (M&P) of certain of M&P's interests in Congo,including the M'Boundi field and the Kouilou exploration licence, as announcedon 22 February 2007, which is subject to Congolese government approval. Pursuantthereto, ENI will become operator of the M'Boundi and Kouakouala fields and theKouilou licence, subject to completion of the necessary formalities. Post completion Burren will have a 37% interest in both the M'Boundi field andthe Kouilou exploration license. Burren also has a 37% interest in the La Noumbiexploration license and a 33% interest in the Kouakouala oil field. The Board of Burren believes that this acquisition gives Burren the opportunityto increase its stake in the M'Boundi field on attractive terms with theM'Boundi field offering significant potential which will be fully exploitedunder the operatorship of ENI. An intensive water injection programme iscurrently under way on the M'Boundi field in order to boost production and anumber of exploration wells are planned on the Kouilou license in 2007. Grossproduction on the M'Boundi field as at February 2007 was 55,400 bopd. Atul Gupta, Chief Executive Officer, commented: "The acquisition increases both reserves and production and gives Burren a moreequal partnership in these assets. West Africa continues to be a core region forBurren and offers material upside potential. With ENI as operator we believethere is the scope to generate further significant returns and we look forwardto working with them." Enquiries: Burren Energy Tel : 020 7484 1900 Atul Gupta, Chief Executive OfficerAndrew Rose, Chief Financial OfficerShona Harvey, Communications Managerwww.burren.co.uk Pelham PR Tel: 020 7743 6676James HendersonAlisdair Haythornthwaite Notes to Editors Burren Energy is an independent oil and gas exploration and production group,headquartered in London. It is focused on four regions: the Caspian region ofthe former Soviet Union, West Africa, Middle East and, through a strategicinvestment stake in the Hindustan Oil Exploration Company, India. The company islisted on the London Stock Exchange ("BUR.L"). This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Burford Capital