11th Aug 2005 07:00
Burren Energy PLC11 August 2005 11 August 2005 Burren Energy plc ("Burren") Launch of Open Offer for 20% of shares in Hindustan Oil Exploration Company ("HOEC") Burren today announces the launch, on behalf of its subsidiary Burren EnergyIndia Ltd., of an Open Offer for 20% of the outstanding share capital ofHindustan Oil Exploration Company ("HOEC") at an offer price of Rupees 92.41 pershare. The Open Offer will open on 16 August 2005 and close on 5 September 2005. The Open Offer arises from the purchase by Burren on 14 February 2005 of UnocalBharat Limited, which owns a 26% stake in HOEC, for a consideration of US$26million, equating to Rupees 74.4 per share. The rules of the Securities &Exchange Board of India ("SEBI") obligate Burren to make an offer for not lessthan 20% of the outstanding shares at or above a specified minimum price. TheOpen Offer price equates to this minimum price. The market price of HOEC sharesrecently has been in excess of Rupees 180 per share. The delay to the Open Offer, which was originally intended to open in April, isas a consequence of SEBI considering the impact of legal actions bought by HardyOil & Gas Ltd. in the Indian courts alleging certain rights under a shareholdersagreement. Alongside the original purchase of the 26% interest in HOEC Burren entered intoagreements with two major shareholders of HOEC to conditionally acquire, subjectinter alia to the completion of the Open Offer, shares amounting to a maximumadditional 15% of HOEC at prices per share similar to that paid for the 26%stake. One of these conditional agreements, for up to 10.7% of the outstandingshares, may lapse before the completion of the Open Offer.Burren's 26% stake is valued at US$62 million based on an HOEC share price ofRupees 180, more than double the price paid for it in February. Burren remains committed to its investment in HOEC and to contributing funds tothe company in due course to fund its development projects, primarily the PY-1gas field in the offshore Cauvery Basin in south-east India. Burren continues tohave two representatives on HOEC's Board. Finian O'Sullivan, Chief Executive of Burren, said: "Our investment in HOEC provides a good opportunity for Burren to participate inthe Indian oil & gas industry by working with a leading domestic oil and gascompany. HOEC already has solid production and there is additional explorationand development upside which we believe will help to meet the demands of thecountry's growing energy requirements." 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