Reserves Downgraded at M'Boundi Field

Maurel & Prom, operator of the M'Boundi field, announced that the well MBD 1501, a step-out development well on the north north-east perimeter of the field, has encountered basement higher than anticipated and has not found reservoir.

Maurel & Prom also announced that the impact of this well would be to reduce their estimate of the amount of oil in place on the M'Boundi field for the purpose of calculating their probable reserves. Burren however considers that the impact of MBD 1501 on its booked gross reserves for M'Boundi will be negligible (according to the most recent publicly available information Burren has a significantly lower estimate of M'Boundi gross reserves than Maurel & Prom).

Well MBD 1501 is the latest in an ongoing program of infill and step-out development wells on the M'Boundi field of which 24 were drilled in 2005 and a similar number are due to be drilled in 2006. It is located outside the area of Burren's proved and probable reserves but helps define the eastern boundary of the field, and will result primarily in some reduction in the estimated size of the possible northern extension to the field.

In 2006 exploration drilling will take place on the possible northern and southern extensions of the M'Boundi field : the first of these wells on the possible southern extension of the field, MBD 2001, will be spudded shortly, with the result expected around the end of March. This well will be followed by MBD 2002 targeting another part of this southern zone.