Trading Statement

RNS Number:6074U
Burren Energy PLC
26 January 2004


26 January 2004

                  Burren Energy plc ("Burren" or "the Group")

                          Pre-Close Trading Statement

Burren Energy plc intends to announce its preliminary results for the year ended
31 December 2003 on 5 April 2004 . Prior to entering into the close period in
advance of this announcement Burren is providing the following guidance to
investors.

Highlights :

*    2003 average net production was 8170 bopd, an increase of 66% over 2002

*    2003 net earnings and operating cash flow are expected to be in line with 
     expectations at the time of the Group's Placing and admission to LSE
     Official List last December

*    Seven development wells were drilled in 2003 in Congo (Brazzaville)

*    Agreements were concluded in January 2004 to acquire new onshore 
     exploration licenses in Congo (Brazzaville) and Egypt


2003 Overview

Net Group production averaged approximately 8170 bopd (2002 : 4923 bopd).
Turkmenistan accounted for 6770 bopd and Congo 1400 bopd. In December Group
production averaged approximately 9950 bopd of which 7670 bopd was from
Turkmenistan and 2280 bopd was from Congo. The increased production over the
year arose from the ongoing workover programme in the Burun field, Turkmenistan
and from successful development drilling on the M'Boundi field, Congo.

Group net profit and operating cashflow for 2003 are expected to be in line with
management's expectations at the time of the Placing last December.

Following the application of net Placing proceeds of #17.4 million in repayment
of outstanding bank finance, total Group debt outstanding at 2003 year end was
#3 million and the Group had cash balances of #19 million.

Recent developments are outlined below.


Turkmenistan

Net Production from the Burun field increased from 4520 bopd in January 2003 to
7670 bopd in December 2003 as a result of the continuous workover programme on
the existing well stock. Some 100 wells are currently in production. A programme
of development drilling on the Burun field North flank has been initiated which
will involve eight new wells in 2004.

The acquisition of seismic data over the remainder of the exploration acreage
within the Nebit Dag concession (540 sq. km) is two-thirds complete and is
expected to be fully completed by the end of March.


Congo

Since the program of development drilling on the M'Boundi field commenced in
July 2003, seven new wells have been completed : of these five are already on
production, and the other two are being put on production.  Burren's net
production from the M'Boundi field  increased from 930 bopd in January 2003 to
2025 bopd in December 2003.

The 2004 firm drilling programme provides for ten development wells on M'Boundi
using two rigs. The partners are evaluating whether to extend this programme.

On 23 December, 2003, Burren was notified by Maurel & Prom ("M&P"), Burren's
partner and operator of the Group's interests in Congo, of its wish to accept an
offer from Energy Africa to acquire 11% of its 65% interest in the M'Boundi
production permit for consideration of US$50 million in cash plus a royalty of
US$1.5 per bbl for Energy Africa's share of oil produced above a threshold of 14
million barrels (Energy Africa's working interest). Burren and M&P are engaged
in constructive discussions to agree certain legal issues relating to the
proposed transaction. A further announcement will be made in due course.


Future Developments

Earlier this month, a production sharing agreement ("PSA") was signed relating
to an exploration permit for the 2830 sq. km Noumbi area in Congo (Brazzaville),
adjacent to the Kouilou permit area (which contains the M'Boundi field). This is
now awaiting ratification by the Congolese parliament. Maurel & Prom is the
operator and Burren has a working interest of 37%.

Also earlier this month, Burren and The Egyptian General Petroleum Corporation
concluded negotiations over a PSA for the onshore East Kanayis Block 7 in
Egypt's Western Desert, 150km southwest of Alexandria. The block covers 4300 sq
km in an area which is experiencing an increase  in exploration activity
following a number of successful exploration wells drilled by other operators .
The PSA is subject to ratification by the Egyptian parliament. Burren will be
operator with a working interest of 100%.

The directors believe both these new areas offer considerable exploration
potential.


Shipping

The shipping business continued to develop satisfactorily in 2003 and traded
profitably. Given the increasing demand for tonnage in the Russian Volga-Don
river system an investment programme to construct 3 barge trains for carrying of
crude oil and products has been initiated. Net capital expenditure will not be
material in the context of overall Group activity.



Commenting on Burren's trading performance in 2003, Finian O'Sullivan, Chief
Executive of Burren said:

"Burren had a tremendous year in 2003, which we rounded off in December with our
successful floatation. We remain committed to cost effective commercial
development  of our existing concessions whilst engaging in  new opportunities
for exploration and development."


ENQUIRIES:

Burren Energy PLC                                             Tel: [phone]
Finian O'Sullivan, Chief Executive Officer
Andrew Rose, Finance Director
www.burren.co.uk

Gavin Anderson & Company                                      Tel: [phone]
Charlotte Stone / Neil Bennett


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).

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.


                      This information is provided by RNS
            The company news service from the London Stock Exchange
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