Burren Energy Says 2003 Very Successful Year

Brian Lavers, Chairman of Burren Energy says that 'After a successful 2003, Burren Energy has continued to make excellent progress in 2004. Average net entitlement production in the first four months of the year was 10,515 bopd, compared with 8,140 bopd in calendar 2003, and current net production is just over 14,000 bopd.

'In Turkmenistan, in addition to continuing workover operations, two development wells have been completed on the North Flank of the Burun field. The last of these, to a depth of 3,400m, was completed for a cost of US$1.5 million. A further well, to a target depth of 4,300m, is in the process of being drilled, following which the rig will move to drill an exploration well on the South Flank of the Burun field.

'These two wells have confirmed significant columns of oil and gas and have provided valuable pressure data in the numerous producing horizons. The first well tested at 1,500 bopd and has been placed on production and the second is still undergoing production testing. The average net production from the Burun field, on an entitlement basis, in the first four months of the year was 7,660 bopd compared with 6,769 bopd in calendar 2003. Current net production is approximately 9,200 bopd.

'Encouraged by the successful drilling of shallow production wells utilizing one of our workover rigs, a new program of shallow drilling to 1,200m will commence in June following the arrival of the fourth workover rig. A fifth workover rig has been ordered so that shallow exploration prospects can be pursued without interrupting the workover program. Two gas compressor units, which will provide secure gas lift capacity to enhance field productivity and gas utilization, were commissioned in April.

'The 3D seismic acquisition over the Nebit Dag PSA exploration area has been completed and the results are expected to be available by the end of July.

'In Congo (Brazzaville) there are now three rigs in operation on the M'Boundi field. Five development wells have been completed and placed on production since January, the last three of which, MBD 504, 301 and 302, tested at an average stable flow rate of over 3,500 bopd per well. Two step-out appraisal wells are currently being drilled, and a third is expected to be spudded shortly. Two of these, MB 701 and 801, if successful, will have a material impact on field reserves. The average net production, on an entitlement basis, in the first four months of the year from Congo (including the M'Boundi, Kouakouala and Pointe Indienne fields) was 2,855 bopd compared with 1,371 bopd in calendar 2003. Current net production is approximately 4,800 bopd.

'A contract has been awarded for a high resolution aero-magnetic survey over the Kouilou permit area, and tenders have been received for the 2D and 3D seismic acquisition over certain Kouilou prospects and the extensions of the M'Boundi field respectively.

'In Egypt we anticipate receiving parliamentary approval in June for the award of the East Kanayis Block 7 license, and expect to commence operations in the second half of this year.

'Finally, Burren's shipping division has recently taken delivery of the first two out of three new crude carrying barges, which have commenced operations in the Russian river system under charter to BP-TNK. The third barge is expected to be delivered in June. The three vessels will add a total of 10,500 MT to the capacity of the fleet bringing the total to 48,000 MT.

'With a strong balance sheet and a positive oil price outlook we look forward to the remainder of the year with confidence.'