29th Mar 2005 15:10
Burren Energy PLC29 March 2005 29 March 2005 Burren Energy plc ("Burren") Drilling & Operations Update : Congo (Brazzaville) SUCCESSFUL M'BOUNDI STEP-OUT WELL MOU SIGNED BY OPERATOR MAUREL & PROM WITH TOTAL RE. HANDLING OF CONGO CRUDE Drilling Well 1001, a step-out well recently drilled at the north-north-east end of theM'Boundi field, has been tested at an initial flow rate of 4,000 bopd from theshallowest section of the Vandji reservoir, indicating a further extension ofthe reservoir in this direction. Preliminary interpretation of well log dataindicates a thickening of this reservoir section in this area, with excellentpermeability and porosity. Well 1303, recently drilled at the north-east end of the M'Boundi field, hasencountered tight unproductive reservoir, and will therefore not be commerciallydeveloped. Memorandum of Understanding signed by Operator with Total Maurel & Prom, the Operator of Burren's Congo interests, has announced thesigning of a Memorandum of Understanding ("MOU") with TEP Congo, a subsidiary ofTotal and operator of the Djeno terminal, regarding the handling and export ofcrude oil from the M'Boundi and Kouakouala fields. Crude from these fields ispresently incorporated into the Djeno Blend (28 degrees API, as compared with 39degrees API for the M'Boundi and Kouakouala crudes), which in 2004 realised anaverage discount to dated Brent of approximately US$3.70 per barrel. The MOUprovides, subject to certain modifications to the facilities at the Djenoterminal which are expected to be completed by the end of Q3 2005, for theM'Boundi and Kouakouala crudes to be incorporated into the lighter Nkossa blendthat sells a discount to dated Brent of approximately US$1.00 per barrel. The terms of this MOU are non-binding, and the contracts are subject to approvalby all partners in the Kouilou and Kouakouala PSCs and by those parties withexisting offtake rights to Nkossa blend. 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 more recentlythrough a strategic investment stake in the Hindustan Oil Exploration Company,India. The company is listed on the London Stock Exchange ("BUR"). Burren's total proven & probable oil reserves as announced on 5 April 2004 were133 Mmbbls, (net to the Group on an entitlement basis). In the Caspian region ofTurkmenistan, 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 oilreserves at 5 April 2004 of 95 Mmbbls. In the Republic of Congo (Brazzaville),Burren has working interests in the M'Boundi, Kouakouala and Pointe Indiennefields with aggregate net proven and probable oil reserves at 5 April 2004 of 38Mmbbls, of which 36 million barrels were in M'Boundi. Significant explorationand development programmes are underway in Turkmenistan and the Congo. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Burford Capital