16th Jul 2007 07:00
Burren Energy PLC16 July 2007 Burren Energy Plc ("Burren" or the "Company") Trading and Operational Update Prior to the announcement of its interim results on 17 September Burren isissuing a trading and operational update in respect of the Group's performancein 2007 to date. The information herein has not been audited and is subject tofurther review. Highlights * 14% increase in H1 production to 38,000 bopd, compared with H1 2006 * Purchase of an additional 5.5% Congo interest from Eni completed * Water injection continues to show progress in Turkmenistan and Congo * Four exploration wells planned in H2 : Dongou (Congo), East Kanayis (Egypt) and Assam (2 wells, HOEC). Trading Overview Group working interest production in H1 2007 was approximately 38,000 bopd, asagainst an average of 34,240 bopd in 2006 as a whole (33,200 bopd in H1 2006).Group under-lift position at 30 June was approximately 480,000 bbls compared to494,000 bbls at year end. Average realised price during H1 was approximately$57.80 per barrel (post average discount of $4.30 per barrel) with no oil hedgesin place. The purchase of the additional 5.5% interest in M'Boundi, 2% in Kouilou from Enihas been completed, subject only to agreement of the adjustments since theeffective date of 1 January 2007. Turkmenistan Gross production in H1 2007 was 21,800 bopd compared with an average of 19,940bopd in FY 2006. Three drilling rigs are currently in operation (two deep, oneshallow) alongside four workover rigs, all owned by Burren. An additionalworkover rig has been purchased. Water injection continued to show excellent results in the shallow horizonswhilst deep water-injection, temporarily suspended, is expected to resume inAugust after the completion of new water-supply wells. Congo Gross production in H1 in Congo was 53,300 bopd, compared with and average of56,000 bopd in 2006 as a whole. On the M'Boundi field, a total of seven water injection wells were completed inH1 with a restricted injection rate of 8,500 bwpd, awaiting the drilling ofadditional water-supply wells. Observed injectivities, especially in the VandjiC reservoir which contains approximately 40% of the oil, have been higher thananticipated. The upgrade of the water treatment and injection facilities to acapacity of 60,000 bwpd is due to be completed during the Q3 and the next stageof the capacity upgrade to 120,000 bwpd is on target for completion by themiddle of 2008. In order to produce the reservoir efficiently, some very highgas-oil ratio wells have been shut-in with minimal impact so far on oilproduction. This programme will continue however the timing remains uncertain.Production for H2 for the M'Boundi field is forecast at between 45,000 to 48,000bopd. On the northern La Noumbi concession, which is operated by Maurel & Prom, thefirst well on the Dongou prospect is expected to spud in August. The time-tablefor Kouilou exploration drilling will be determined following completion of atechnical review by Eni. Middle East In Egypt, subject to Government approval, we are in the process of mobilising arig from China to drill an exploration well in Q4 on the 100% owned East Kanayisblock, targeting a potentially material gas structure in the deep Jurassicsection. Seismic acquisition will start during H2 in Block 6 in Yemen (Burren88%). In Oman, after reviewing the newly acquired seismic, partners have decidednot to proceed into the drilling phase and notified the authorities torelinquish Block 50 as of 1 August 2007. India Following the successful drilling of the PY-1 appraisal well earlier in the yearand the subsequent signature of a gas sales agreement, Hindustan Oil ExplorationCompany ("HOEC") is proceeding with this offshore gas development. In additionHOEC successfully drilled two exploration wells both finding oil in the Cambaybasin. Further, two exploration wells in Assam are planned for Q4 2007. Atul Gupta, Chief Executive, commented: "Higher oil production, focus on costs, a rising oil price and an un-hedgedposition has led to a successful first half of the year. The second half of theyear will focus on the continued implementation of our plan to increase recoveryfactors on our core fields through water injection and development drilling, aswell as the drilling of exploration wells in Egypt, Congo and India". 16 July 2007 Enquiries: Burren Energy Tel: 020 7484 1900 Atul Gupta, Chief Executive Officer Shona Harvey, Communications Managerwww.burren.co.uk Pelham PR Tel: 020 7743 6676 James HendersonAlisdair Haythornthwaite This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Burford Capital