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

>> Ricardo, thanks for the posting. I have just got back from 2 weeks holiday and the share price has flown from about 222p to about 260p. I had not noticed the increased estimate of reserves at M'boundi from 21Mill barrels to 36M before I left (but thought the share price jump had been in expectation of good results - which as you are aware were delivered). This news alone I reckon should increase the value of the M'boundi reserves by about 100mill. This is a back of a fag packet calculation, but is based on the original 21 mill barrels being worth approx 100 mill. Bear in mind that with Maurel & Prom a $1.50 royalty was paid on barrelage of over 14 mill which skews the figures, and means aditional reserves become proportionally worth more.

The announcement of the increased reserves at M'boundi was a very brief statement and subsequently Finian O'Sullivan has said that the figure could be 50 mill barrels. It seems conservative in any case. I did read a while ago that they had yet to find the oil/water mix in M'boundi which would indicate that they had reached the bottom of the field. I am not clear as to whether this is still the case or not.

I suspect that the value of the M'boundi reserves will be worth at least 250 mill in total, which leaves the balance of the market cap of burren at about 100 mill. This is an absurdly low figure since Nebit Dag has vast reseves and provides the lion share of oil production to date. Burren south has large untapped reserves, the other Congo and Egypt licenses will come on-stream in due course, and no account is taken of the vast gas reserves that burren has. Add to that, that production should double for each of the next two years, and you should have a share that will continue to soar.

Dyor.
Regards
gk

Another healthy 3% rise today!

gallick,

I agree, shame I only watched rather than buying, but only have so much money!

>>Andy

I know the feeling ... too many shares to buy, but no point in spreading your cash too thinly! If you are not in this share though, I think it is a good idea to have some money in at least one oil stock. After all like all commodities it has finite reserves, we are all guzzling more fuel (paticularly the Chinese now), the Iraq (and Venezuela) situations look dodgy, and there is always the potential fall of the house of Saud. The later would have a prolific effect on oil prices which would soar.

I am sure you have shares that I would love to have bought when you did!!

Regards
gk

gallick,

I hold PRE, (from 60p! lol!) JKX, and am looking at Teton (US) and Lukoil.

>>Andy<<

You are in a couple of cracking stocks there imho. I was in JXK at 38p, but got bored and bailed out....what a mistake!! Many of these oil stocks are tantalising. I am in Dana as well but have been looking closely at Regal and Cairn (which still may continue to go from strength to strength).

Burren down 4% today but I'm not too bothered, since I'm up 40% overall. Momentum Investor consider it a 'multibagger'over the medium term, and at 270p it qualifies as a bagger for the first time!

Rgds
gk

gallick,

Burren falling may indicate a possible buying opportunity soon, they certainly look like a decent investment...I have been watching, and if they fall back some more will look to dip my toe in.

i may go for Melrose and JKX too, oil and gas seems to be the place to be at the moment...

>>aimtrader

Agree with your sentiments. I believe even Tony Blair is getting concerned about the oil price hitting new highs. The 'driving season' is about to start in the US and their stocks of oil are I understand incredibly low. I heard on the radio that world oil reserves are going to run out by 2040. Of course we have all heard that one before, but in the stockmarket it is sentiment that counts.

I think taking a position in a number of smaller oil exploration stocks makes sense. Admittedly some profit-takers are moving out of burren. It obviously makes sense to take some profit but with these types of shares, all it takes is one trading statement saying reserves are higher than expected ....and bingo. I like burren because they are not too concentrated in one region...this is the potential danger ...eg ramco.

Bingo today. M&P seem to be finding more oil in M'boundi and burren have a 35% stake. I think the downdraft may be over for now but there does seem to definately be a big speculative bubble in oil.

Rgrds gk

Nice healthy rise today - up 6.8%!

Oil price coming down, burren going up (today at least). Maybe the speculators have been buying oil futures not oil companies! Analysts reckon speculators are responsible for $5-10 in the oil price.

regrds
gk

BUR has really been motoring in the last week. Anyone know why? - maybe in the slipstream of Cairn...

Shares Mag says BUR has signed a PSA with the Egyptian govt for its concession in the Western desert.

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!