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

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

Amazing! A really upbeat news update from Burren Energy which puts a much more bullish slant on the excellent progress being made in the Congo and sets the record straight in Turkmenistan, where the Market`s negative interpretation of the Company`s recent statement on propects for the new deep well was obviously quite wrong.

oilbarrel.com
03 Dec 2004
Burren Feels The Pressure In Turkmenistan And Its Shallow Wells Continue To Make A Quick Payback
Results from Burren Energys B060 exploration well on the south flank of the Burun field onshore Turkmenistan will be delayed for a couple of months while the London-listed company brings in special production testing equipment capable of handling the very high downhole pressures.

These high pressures are quite normal for deep wells in the Caspian Region, although the pressures are higher than they originally expected, said a spokeswoman for the group. Theyve ordered in some strong equipment capable of dealing with these pressures and that should be there in a few months.

Well B060 was spudded in early August and, after a side-track, has now reached its target depth of 4,150 metres. It has been suspended until the specialist equipment arrives.

Everythings going well in Turkmenistan, added the spokeswoman. Everythings on track. Theyre just waiting for the right equipment. And the shallow drilling programme is going well.

Burren holds 100 per cent of the Nebit Dag production sharing agreement area in western Turkmenistan. The Burun oilfield is the companys main focus. It is the western-most field in the PSA area, which is also home to three other producing oil fields and two gas fields as well as a number of other prospective oil and gas discoveries and exploration prospects. The company is making good progress in hiking production from Burun: in its current work programme seven shallow wells have been drilled boosting production numbers in increments of about 250 barrels per day. These shallow wells cost about US$250,000 to drill, making for a quick return on investment. This, together with a four-rig workover programme, continues to increase field production which now stands at 18,200 bpd (11,200 bpd net entitlement to Burren). This represents an increase in gross production of 14 per cent from mid-year.

The company is also seeing rising production numbers from its Kouilou and Kouakouala licence areas in Congo (Brazzaville) in West Africa, where an extensive drilling programme is underway. Last month the company revealed that well 703 on the MBoundi field, which seems to exceed expectations with every well sunk, has been tested at a flowrate of 3,500 bpd. This followed hot on the heels of the success of well 106, which flowed 2,000 bpd during testing, and wells 702 and 901 which flowed 2,250 and 1,400 bpd respectively. This spate of drilling success looks set to continue as the block operator, French outfit Maurel & Prom, has three rigs currently engaged in appraisal and development drilling on MBoundi and a fourth is drilling a step-out on the Kouakouala field. The company looks set to exit the year with a healthy production lift: at the time of its interims in September - prior to the completion of wells 106,702, 901 and 703 - its Congo assets were producing 26,000 bpd. That number will rise as the wells are hooked in and put on line, bringing more good news for Burrens investors.

Been a while since anyone posted on this.

I'm still very long and the sp is doing just fine atm. Think 600 is on the cards soonish.

salford
Excellent couple of weeks I agree and the sp is strong at the moment whipping through resistance levels without too much bother. Bought in @ 469p recently so I'm quite happy! Lots more to come from BUR in the future as well.

Greetings,
And there was me thinking that I was the only one left holding these. Have held them on and off since 243, so they've put more than one smile on my face.
Came to grief on my last spreadbet though, so I've been a bit wary of opening new positions. With today's breakout confirmed I have opened a new position - either we will sale through 6 or that will be the signal for them to tank.

Pond Life
I just wish I'd kept my original punt at 1.93! Sold @ 4.16 but bought some more recently at 4.69 and added a few more shares this morning. HorneBlower (excellent poster)on ADVFN expects these to sail through 5.80 quite easily in the next few days -> fortnight.
Lots of oil left in BUR!

I first bought at 186p, have never been out since then, and am still holding. Admittedly, I have reduced and repurchased a few times. I bought twice at around 460p recently when the value seemed unjustified.

I think the long term future looks good - the buren field (turkmenistan), Mboundi (reserves keep rising), Egyptian possibilities and now Indian possibilities. Also big gas holdings not factored into the price. Adding the fact that the market thinks that oil prices are going to tumble and they are clearly not, and a low prospective PE going forwards - I still think this stock looks good - infact it's the largest holding in my portfolio. In my view it will enter the FTSE 100 in the not too distant future.

rgrds to all
gk

Agree with all comments. BUR is a quality oil stock - only wish I could afford more. I also read advfn and Hornblower (liked the books when I was a kid). I am hopeful for the price hike to 580. If we do have to wait a while then so be it. If not before, the interims should be so spectacular that they will almost certainly see the price in the 580 - 600 region. BUR have been selling oil on the spot market, having hedged very little. With oil having averaged over $50 so far this year that will have lit the fuse on their profits.