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

salford: Thanks for this excellent news....I extract the comment to savour...a new pipe (12inch), because the current network limits capacity...wonderful news. Still I expect Burren's SP to fall tomorrow due to the hit on Oil Futures...having said that it does not seem to have risen in line with the Oil Price increase anyway. Methinks Burren may be taken over sooner rather than later at this rate. Thanks again Salford.

So who gave these a big slap today? Totally unjustified on minimal volume and a fair ratio of buyers to sellers. Looks like a classic buying opportunity.

Pond Life: I agree, we are looking at a bottom. I am just waiting for the RSI to suggest a turn of momentum before jumping in.

What makes you think this is a bottom? Wishful thinking maybe?
From a chart perspective 375 or even 330 is the next stop in my opinion. I've sold but will buy back in when it's going UP not down.

Harlosh: Well at the moment you are right, no bottom has been signalled. I am just looking at the standard supprt/reistance levels + 50 day ma from this years assent. At the moment we are either going to bounce up, or if the SP continues to fall, then clearly the next stops are 375p or as you say 330p. We will see.

Pond Life: Reasons for sudden fall in SP:
1. Possible Yukos resolution, 2. Falling World oil price, 3. Someone confused over French Action in Ivory Coast being near Congo!

In my opinion a good opportunity to see where the support lies before next push up of SP into New Year and results season. We shall see.

Bottom at 400 intraday today I hope. Another big slap, but more sellers than buyers. Could be the MMs manufacturing a drop to shake out the stops. Lots of small sellers jumped ship. Or am I just a conspiracy theorist looking for excuses?
When is the next drilling update due? Aren't we due some news from Turkmenistan? We need something to get this moving north again.

Pond Life

I think it's dangerous to look for reasons for the fall in price. What you are really doing is looking to justify why you should hold when the price is telling you to sell. It may bounce back suddenly. But then again it might not. I'm not prepared to take the risk.

Perhaps the market knows something we don't and are off loading before the news comes out. I don't know. But discipline on stops is essential for survival.

With BUR we can expect up to 7 successful wells (including Burun south) by end December - almost one a week in other words. You can probably double this figure again for March 2005. The only problem they seem to have is that the capacity of the Congo fields can't cope with the amount of oil they're finding.

Trouble with stops is that you need to find another share with the same potential rewards - difficult as all shares have good and bad days/weeks.

Bur ,however, is an exponentially expanding company producing a commodity in short supply; and the Congo fields are one of the most exciting world class finds in the last 20 years of oil exploration.

This share is massively undervalued imo, so I'm going to sit this one out until March 2005 when I expect SP of 700 - good enough for me considering the risk involved.

From Geoff Foster: Daily Mail: Yesterday's Trading:

Rumours of a possible fundraising - denied by the company - to help finance the exploration of its interests in the Congo prompted selling of Burren Energy, 19p down at 416p.

Salford,

I think your probably right on Bur's prospects but holding while the price is falling so dramatically is still dangerous IMO to one's wealth. Down another 13p today. I think it is a fundamental principle to cut your losses or protect your profits. After all you can buy in at a cheaper price when it (hopefully) turns upwards again.

I agree. I bought at 340 and sold at 440 ( I think) so a nice little earner. Won't get back in just yet but great potential.

MS

Harlosh,

I agree stops play an important role, but I tend to use them primarily on speculative/illiquid shares and not on value growth companies that are massively undervalued.

Of course, if there was a reason for the recent fall, I would be out like a shot. Just that there isn't any bad news apart from a few rumours in the press regarding the lock in agreement with founding members. The story not only continues in other words but is getting much much stronger.

Anyway, good luck with your trading. I'll stick to my exit plan of 700 in March.

Cheers

evening all,

have been buying these over the last couple of days on a cfd for a long term hold,looks good to me !!!aint got a clue how far they will go,but they will rise for sure :-)

RE:last post 700 looks good!!!

Enjoy the coming days

Mega...

You have to bear in mind that Bur is now a mid cap 250 stock. A lot of fund managers are rotating out of Oil stocks, taking their profits and saying thanks very much. I think that is a mistake because bur seem to understate their assets. I have been in since 186p - not bad over 1 year. I would not sell on the basis that I have not heard any bad news (it only seems to be good). Also, when an oil company has found a big oilfield (like M'boundi), very often news of reserves just keeps on coming. It has 3 times so far and there may be plenty to come. If you think the oil price is down to stay, think again - there are growing and increasing signs of shortages. I can't think of any longer-term oil stocks I would rather be in and I do like a few others.

rgrds
gk

My only grumble is with Harry Hindsight - why oh why didn't I see the top of the market and sell? I could be buying back in now with cash to spare. I agree that BUR will bounce back. There is no reason for the fall and the company is still very sound. Lots of good news still to come.
There is lots of BB speculation surrounding reasons for the fall. The only one that I think could be valid is the possibility of founders selling out when the lock in period expires next month. I read on another BB about speculation that a placing is already being arranged and that is why the SP is being manipulated lower. Conspiracy conspiracy.....

Update from m&p. Flow rate restored on M'Boundi 703 - 3.500 b/d
Results of 3 new wells expected in 2/3 weeks.
Link posted in French.

http://www.maureletprom.fr/files/news/MaurelProm20041114CPFra.pdf

Big drop today. There's got to be a reason for it somewhere.

It seems that the main factor is that founder shareholders could sell large tranches of stock, when their lock-in agreement expires in early December. Also it appears that rumours of a bid from Indian Oil Corporation have faded.

In short nothing to do with the long term fundamentals of the company which look rock solid. I do not think the falling oil price has much to do with it and the stock looks cheap to me now, particularly as there is likely to be more good news to come soon. I'm holding tight, but would like to be buying!

rgrds
gk

Burren Energy PLC
16 November 2004


16 November 2004

Burren Energy plc ('Burren')

Drilling Update : Congo (Brazzaville)

An announcement was made on 15 November 2004 by Maurel & Prom, the operator of
the Kouilou and Kouakouala license areas in Congo (Brazzaville), that well 703
on the M'Boundi field had been tested at a stabilised flow rate of 3,500 bopd.

Development and appraisal drilling on the M'Boundi field continues with 3 rigs
in operation. A fourth rig is currently engaged in drilling a step-out well on
the Kouakouala field.

ENQUIRIES:

Burren Energy PLC Tel: 0207 484 1900
Finian O'Sullivan, Chief Executive Officer
Andrew Rose, Finance Director

www.burren.co.uk