Sale of Interest in Congo

RNS Number:9924T
Burren Energy PLC
08 January 2004


8 January 2004

                                Burren Energy plc
                                   ("Burren")

          Sale of interest in the M'Boundi Field, Congo (Brazzaville)


Burren has been notified by Les Etablissements Maurel & Prom ("Maurel & Prom"),
its partner and the operator of Burren's assets in Congo (Brazzaville), that
Maurel & Prom has reached agreement in principle, subject to documentation, to
sell an 11 per cent. interest in the M'Boundi Production Permit ("M'Boundi") (in
which Burren has a 35 per cent. interest) to Energy Africa Limited ("Energy
Africa"), leaving Maurel & Prom with a 54 per cent interest.


Under the proposed terms of the transaction, which is not yet subject to a
binding legal agreement, Energy Africa will pay to Maurel & Prom an initial cash
sum of US$50 million plus a royalty of US$1.5 per barrel for Energy Africa's
share of each barrel of oil produced from M'Boundi above a threshold of 14
million barrels (Energy Africa's share). Maurel & Prom and Energy Africa have
estimated that the amount expected to be paid by way of royalty is US$24
million.


The proposed terms of the acquisition value Burren's 35 per cent. interest in
M'Boundi at approximately US$159 million, based only on the initial US$50
million consideration.


Under the joint operating agreement between Burren and Maurel & Prom regarding
M'Boundi, Burren may exercise pre-emption rights to acquire the interest to be
sold by Maurel & Prom on the same terms as those agreed with Energy Africa.
Burren is currently in discussion with both Maurel & Prom and its own advisers
to clarify certain aspects of the proposed transaction and is considering
whether or not to exercise its pre-emption rights. A further announcement will
be made in due course.


Enquiries:

Burren Energy PLC                                      Tel: [phone]
Finian O'Sullivan (Chief Executive Officer)
Andrew Rose (Chief Financial Officer)
www.burren.co.uk

Gavin Anderson & Company                               Tel: [phone]
Charlotte Stone

Notes to Editors


Burren Energy is an independent oil and gas exploration and production group,
headquartered in London. It is focused on two principal regions: the Caspian
region of the former Soviet Union and West Africa. The company is listed on the
London Stock Exchange ("BUR").


Burren's total proven oil reserves as at 30 June 2003, as audited by Ryder
Scott, were over 39 MMbbls and total proven and probable oil reserves were over
115 MMbbls (both figures net to the Group on an entitlement basis). Average
production in the nine months to 30 September 2003 was 7,460 bopd net to the
Group and production is currently over 10,000 bopd net to the Group.


In the Caspian region of Turkmenistan, Burren has a 100 per cent. working
interest in the Nebit Dag PSA, which contains the Burun oil and gas field with
net proven and probable oil reserves of 97.7 MMbbls. In the Republic of Congo
(Brazzaville), Burren has working interests in the M'Boundi, Kouakouala and
Pointe Indienne fields with aggregate net proven and probable oil reserves of
17.9 MMbbls. Significant exploration and development programmes are planned in
Turkmenistan and the Congo in the coming years.








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