This oil company floated (with a main market listing) in December. Its main production is in Turkmenistan -- it has its own fleet of tankers operating in the Caspian, and on the Volga and Don rivers -- it has profitable production interests in Congo-Brazzaville -- it has been granted an exploration license in Egypt -- it is debt free.

On a p/e of about 14 for 2003, it is not as cheap as it was but I like it as a growth story (particularly if it can bring its gas reserves in the Turkmen Nebit Dag field to market), and a play on continued strong oil prices.

http://www.burren.co.uk

A bit volatile at the moment. Down 7% yesterday, so I took the opportunity to top up. Up over 6% today. IMHO hanging in there long term makes sense.

rgrds
gk

Hi Gallick,

Don't know if you've read this post from advfn. Bur well undervalued.

From Peel Hunt
30 June, 2004
1 of 1
News Extra
Tony Alves Oil & Gas +44 20 7417 8813
Burren Energy (BUR) 310p Mboundi Drilling Update BUY
Results of the 801 well on the Mboundi field in Congo, with a further well, 701, due for completion in the next
few days, have extended the limits of this field yet again.
Our 260p Core NAV is includes only the companys last published view on reserves. There is every prospect
of the numbers doubling or trebling and our Upside NAV of 502p may indeed be conservative.
Burren has a 35% interest in the Mboundi field in Congo and in the surrounding exploration acreage.
Reserves in the field have increased from 85 million barrels (gross basis) in the companys IPO prospectus in
2003, to 175 mmbbls as outlined by the company in March 2004. The operator of the field, Maurel & Prom
recently estimated field reserves of over 450 mmbbls with additional possible reserves of 370 mmbbls.
If this more extreme level of upside is achieved, Burrens interest in Mboundi alone would cover 530p of the share
value and the Core NAV would rise to over 680p per share.
In Turkmenistan, Burren has 100% of a production sharing contract and reserves of over 100 million barrels with
existing and growing production.
There will be some useful exploration drilling in Turkmenistan later this year and into next year.

Go baby go!

>> salford

Thanks for that. The real puzzle is that the share price at launch was a mere 135p and that is less than 10 months ago! They seem to keep finding oil and comparatively, look far more attractive than others in the oil exploration sector IMHO. I can only see upgrades on reserves at Mboundi (and don't forget those gas reserves(do you know if Peel Hunt have factored them in)?
rgrds
gk

No value currently attributed to the gas reserves

Cheers beaufort.

All looks good. May be a slight blip next week as profit-takers come in following the recent spike. But you can't call the top of a graph that looks like this!!

BUR roaring up again this morning. 368.75p when I last looked!

378p and counting.

According to Reuters ,today's fall is due to a large stake being placed. Don't panic!!

Thanks johngtudor but can you explain what this means and why it should result in a drop in price?

cheers

The market has seen a seen a large seller of the stock and anticpates further disposals, which might upset the market's liquidity of the stock. This lower price may offer a good short term buying opportunity if your are a long term holder of the stock.

That was a large stake, is this going to continue to drop the price??? Is this going to cause a mass of selling in the morning????

Thanks for the info.

I suspect that such a large drop in the price has also triggered a number of programmed trades. Hopefully there will be some news on this before the market opens tomorrow. What we really need now is for Burren to announce some positive results from its second exploration drill. In any case I shall post as soon as I hear something and remember it is never a bad thing to lock in your profits.

I've taken the opportunity to top up again. It is possible there might be a further shake out tomorrow, but it is just as possible that there will be a bounce IMHO. There should be support at 3.10, which was the point from which the last find was made. Long term this is a buying opportunity, short term... well...this is the stockmarket after all!

rgrds
gk

I have found this on Citywire which gives a nice post drop glow and IMHO bodes well!!

James.

Burren Energy (BUR) said 24.5 million shares had been placed by development capitalists on the advice of brokers following a surge in the groups price since its float on 11 December last year.


The company confirmed the entire placing had been snapped up by institutional and pension funds.


Burren Energy was the day's weakest mid-cap, plunging 36p, or 10%, to 325p as rumours of the placing triggered a sell off.

For you guys (press mention : will appear in the Times Newspaper tomorrow) :

Burren Energy, the oil and gas vehicle with interests in the Congo, shed 36p to 325p from Mondays record high as Seymour Pierce, the house broker, placed 24.5 million shares, or 17.5 per cent, at 325p on behalf of a group of pre-float private equity investors. The broker waived a lock-up arrangement which is not due to expire until December, the first anniversary of Burrens 130p debut in an effort to broaden its investor base.

http://business.timesonline.co.uk/article/0,,8211-1178383,00.html

Burren Energy drained by founding investor sell-off

Burren Energy tumbled 10pc yesterday as a number of founding investors sold 24.5m shares, representing 17.9pc of the oil and gas exploration group.

The companies had invested in Burren when it floated at 130p last December. Traders said Capital Group, AIG and ING were among the investors reducing their holdings although chief executive and founder Finian O'Sullivan is understood to have held on to his 4.4pc stake.

Seymour Pierce placed the shares at 325p. Burren Energy fell 36 to 325p.

extracted from today's Daily Telegraph.

So it was an agreed sale and the price was dropped to accomodate the Institutions at the expense of 'other' investors. It is good to read that the CEO held onto his stake and the lower BUY price clearly offered a good opportunity for those looking to top up!

Oil and gas exploration group Burren Energy bounced 12 to 337p. Traders said the placing of 24.5m shares by founding investors on Tuesday had been oversubscribed. Investors are hoping that Burren Energy's interim pre-close trading update, thought to be scheduled for Monday, will be positive.

Up again today. W'ont be long before we are at new highs (above 380p). Good to see Finian is hanging on to his shares. He is the man that counts IMHO.
Rgrds
gk