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

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

Yep, and now closed period is upon us selling's out of the question till after the interims in Sept (not that I'd expect him to with this gem of a company he's running).

With huge rises in production, reserves and revenue, and with the potential for much more to come, I can't think of a better and safer share to be in at the moment.

Big buys today,too. Looks good for tomorrow.

Just my opinion of course.... and we all know the risks.

Good luck.

Interesting that the share sales by initial investors were subsequently snapped up very rapidly, and tucked into the pension funds of the knowledgeable fund managers/brokers. They know which side their bread is buttered on!!

Short term, I think 4 is a given, and 4.50 is reasonable (although this understates). Beyond that I think we need further news, but I have a sneaking suspicion...... that we may get it!!

Rgrds
gk

Just noticed, because it is 12.15 a.m. on Thursday Morning (I know I'm sad) that Shares mag is online. The cover story mentions BUR amongst others, and that 3D seismic results from Nebit Dag will be known at the end of the month. Depending on your persuasion (or whether you were into Apocalypse Now), it is time to hang on to either your hat or your balls (apologies to all female posters).

rgrds
gk

Wells 701 and 801 in M'Boundi have both found oil testing at 5400 bopd between them. No water was found, which as I understand it, means that they have not reached the bottom of the oil reserves and could mean reseves are greater. All looks good to me, including the figs. Bit surprised by the 5% reversal today, but can expect volatility in this stock.

rgrds to all
gk

Mark Watson-Mitchell came out with a cracking review of Burren todday on his Web site (watshot.com), which I commend to you, if you are not already a subscriber. Anyway he sees the share price rising farily rapidly up through 4 in short order. Lets hope he is correct, but it will require a good flow of corporate news from Burren. They should be able to provide it given the exploration activity, September Interims, and a major review of reserves, all scheduled over the next few months. Yesterday's fall in price was according to Yvette Essen in the 'Torygraph' due to Canaccord Capital cutting its rating on the group, saying the share price is now well ahead of its fundamental value estimate!! Although I would appreciate it if someone could get hold of a copy of this report, it seems to me like a good opportunity for the Institutions to bring the price down as they continue to top up, particularly as the recent share placing was over subscribed.

It is also becoming clear that BUR are cautious about upgrading their reserves, and are definately not ramping the share price. They still have not upgraded M'boundi reserves from possible to probable. If and when they do....!!