BURREN ENERGY PLC ANNUAL REPORT AND ACCOUNTS 2004
www .burren.co.uk
Burren Energy
Kierran Cross
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11 Strand
London
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T. +44 (0)20 7484 1900
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BURREN ENERGY PLC ANNUAL REPORT AND ACCOUNTS 2004 246 millionbarrels
proven & probable working interest reserves
(increased by 37%)
146%
increase in net profit
highlights
2D, 3D
two (three) dimensional 
(in relation to seismic surveys)
bareboat charter
a type of ship charter under which the
charterer hires the vessel without a crew 
and bears all the expenses of operation
bbl
barrel of oil
bopd
barrels of oil per day
Burren or the Company
Burren Energy Plc
Caspian Region
the countries of the Former Soviet Union
bordering the Caspian Sea
Congo
The Republic of Congo (Brazzaville)
entitlement 
with reference to reserves or production, 
that share of the gross amount to which 
the Company is entitled after taking account 
of the terms of the relevant PSA or PSC
Flotation
the Placing of ordinary shares in the Company
and Admission to the Ofﬁcial List of the UK
Listing Authority on 11 December 2003
FOB
Free on board
gas-lift
an artiﬁcial lift method employing deep gas
injection into a well bore in order to increase
ﬂow rates
Group
The Company and its subsidiaries
HOEC
Hindustan Oil Exploration Company Limited
HSE
Health, Safety & Environment
IPE
International Petroleum Exchange
km. (sq km)
kilometre (square kilometres)
L TIP
Long Term Incentive Plan
Maurel & Prom
an independent French oil exploration and
production company quoted on Euronext
stock exchange. Maurel & Prom is operator 
of the ﬁelds in Congo in which Burren has 
an interest.
P+P
Proven and Probable (reserves)
PSA, PSC
production sharing agreement (contract)
psig
pounds per square inch gauge
PSP
Performance Share Plan
Russian river system
the system of rivers in south-west Russia
comprising the Volga River, the Don River 
and the Volga-Don canal, which links central
Russia with the Black Sea
shut-in
refers to an existing well which is closed 
and not producing
Tacoma
Tacoma Petroleum Holding Limited and
subsidiaries, a Geneva based group engaged
in oil trading, reﬁning and distribution primarily
in West Africa
work-over
major repairs or modiﬁcations to a well 
which restore or enhance production
glossary
74%
year on year production growth
146 million barrels
proven & probable entitlement reserves
(increased by 22%)
 25 directors’ report
 27 corporate governance
 30 remuneration report
 34 statement of directors’ responsibilities
 35 independent auditors’ report
 36 financial statements
 41 notes to the financial statements
 60 five year summary
 ibc glossary
 01 highlights
 02 chairman’s statement
 03 year in review
 04 Burren at a glance
 06 chief executive’s review
 08 review of operations
 14 financial review
 16 board of directors
 18 senior management
 19 officers and professional advisers
 20 corporate & social responsibility
 22 health, safety and the environment
 23 reserves
Burren Energy is an independent oil & gas 
exploration and production group active 
in frontier markets. It has assets in four 
principal geographic regions: the Caspian 
region, West Africa, North Africa, and the 
Indian subcontinent. 
Burren aims to become the vehicle of choice 
for investors seeking to invest in a focused 
portfolio of production, development and 
exploration assets in frontier regions of 
the world. -5
0
5
10
15
20
25
30
35
40
£ million
01 02 00 03 04
0
10
20
30
40
50
60
£ million
01 02 00 03 04
0
4,000
2,000
6,000
8,000
10,000
12,000
14,000
16,000
Barrels per day
01 02 00 03 04
Production 
(barrels per day)
Key
Turkmenistan
Congo
Operating cash flow
(£ millions)
Net profit
(£ millions)
financial highlights
 pre-tax profit up by 163% to £48.5 million
 net profit up by 146% to £38.8 million
 earnings per share up by 69% to 28.4 pence
 operating cash flow up by 91% to £54.6 million
 maiden dividend declared of 3.0p per share
operational highlights
 signature of first PSC in Egypt and award
of two further blocks since year end
 entry into India via purchase post year end of
26% of Hindustan Oil Exploration Company
strategic highlights
BURREN ENERGY PLC ANNUAL REPORT AND ACCOUNTS 2004 01
 average daily production increased 
by 74% over 2003 to 14,200 bopd
 proven & probable reserves increased by 
22% to 146 million bbls (entitlement basis) and 
by 37% to 246 million bbls (working interest basis)
 28 wells drilled of which 27 found hydrocarbons 02 BURREN ENERGY PLC ANNUAL REPORT AND ACCOUNTS 2004
chairman’s statement
We recorded impressive increases in
production, operating cash ﬂow and proﬁts,
and established the Group’s presence in Egypt,
where we have now been awarded three
licences. Since the year-end, we have moved
into India via the purchase of a 26% interest in
Hindustan Oil Exploration Company. We now
have a portfolio of E&P assets focused in 
four geographic areas with complementary
characteristics and each with material 
upside potential.
Driven by successful drilling programmes 
in Turkmenistan and Congo, average daily
group production (net to Burren) rose by 74%
to 14,200 bopd (2003: 8,140 bopd), making 
the average annual growth rate over the last
three years 75% p.a., a very creditable
performance in an industry context. This
production increase, combined with
substantially higher oil prices, enabled 
Burren to more than double net proﬁt to 
£38.8 million (2003: £15.8 million) and 
to generate net cash ﬂow before ﬁnancing 
of £3.8 million despite a near doubling of 
capital expenditure compared with 2003. 
2004 was the third year in a row of more 
than doubled proﬁts, achieved despite the
effects of the steady decline in the US dollar
against sterling over this period.
As a result of the dramatic expansion of the
M’Boundi ﬁeld in Congo during the year, Group
entitlement P+P reserves increased by 22% to
146 million barrels at 31 December 2004. This
increase of 26 million barrels, representing more
than ﬁve times last year’s production, is after 
a downwards adjustment of 14 million barrels
arising from the impact on our share of future
production, under the terms of the PSCs, of 
an increase in the assumed long term Brent oil
price from US$19/bbl to US$25/bbl. But for this
adjustment the increase would have been 34%.
On a working interest basis P+P reserves
increased by 37% to 246 million barrels.
Burren’s share price has risen strongly over the
period as a result of which the Company was
included in the FTSE 250 index with effect from
21 June 2004. In mid-July 2004, 24.5 million
shares held by pre-Flotation shareholders,
representing 18% of the Company, were 
placed by the Company’s brokers with
institutional investors in response to 
market demand. 
In January 2005, a further 22 million existing
shares (16% of the Company) were placed in 
a similar way. As a result the free ﬂoat has
increased to 63% of Burren’s share capital 
thus improving the market liquidity of the shares.
Burren’s safety performance in Nebit Dag,
where it acts as Operator, has been excellent,
with no serious accidents reported during the
period. Further enhancements have been made
to the HSE management system to ensure the
health and safety of our employees and others.
Burren continues to progress its activities in an
environmentally and socially responsible way.
There have been two additions to the Board
since the beginning of the period: Mr. Pierre
Lasry and Mr. Keith Henry were appointed
Non-Executive Directors in January 2004 and
March 2005, respectively. Both new Directors
have immense knowledge and experience 
of our business and are most welcome 
to the Board. The Audit, Nominations and
Remuneration Committees met regularly 
during the year. Burren is progressing towards
full compliance with the recommendations of
the Revised Combined Code on best practice
in corporate governance. Initiatives undertaken
during the year included a comprehensive
analysis of risk and the management thereof,
carried out during 2004.
In conclusion, I would like on behalf of the
shareholders and the Board to express my
gratitude to the executives, managers and 
all employees, especially those in the ﬁeld, 
for their dedication and hard work in achieving
such successful results. 
Brian Lavers CBE
Chairman
4 April 2005
Brian Lavers CBE
Chairman
I am pleased to report that in 
its ﬁrst full year on the London
Stock Exchange your Company
had a highly successful year.
2004 was a year of great
achievement for Burren both
ﬁnancially and in terms of 
the Company’s strategic
development and creation 
of shareholder value.  BURREN ENERGY PLC ANNUAL REPORT AND ACCOUNTS 2004 03
year in review
Post year–end 
January 2005
Placing of 22 million shares, representing 16% of 
issued share capital, by pre-Flotation shareholders.
February 2005
Acquisition of 26% interest in Hindustan Oil 
Exploration Company (India).
April 
Reserves in M’Boundi ﬁeld in Congo (Brazzaville)
upgraded to 36 million barrels (P+P) following drilling
success, taking Burren’s group P+P entitlement reserves 
to 133 million barrels.
3D seismic acquisition over 540 sq km Nebit Dag exploration
area (Turkmenistan) completed.
July 
Placing of 24.5 million shares, representing 18% of
issued share capital, by pre-Flotation shareholders.
August
Spudding of ﬁrst exploration well on south ﬂank of Burun
ﬁeld (Turkmenistan): later suspended due to high formation
pressures pending arrival of specialist equipment in 2005.
September
Signature of PSC for 4,300 sq km East Kanayis block,
onshore in Egypt, and establishment of Burren ofﬁce in Cairo.
Completion of high resolution aero-magnetic survey over
Kouilou and Noumbi licence areas in Congo (Brazzaville).
December
M’Boundi wells 1301 and 303 in Congo (Brazzaville) test
at the highest initial ﬂow rates to date, namely 4,100 bopd
and 4,500 bopd respectively.  04 BURREN ENERGY PLC ANNUAL REPORT AND ACCOUNTS 2004
FRANCE
ITALY
ALBANIA
LIBYA
NIGERIA
NIGER
CHAD
CENTRAL   
REPU 
ANGOLA
AUSTRIA
SWITZERLAND
SLOVENIA
CROATIA
HUNGARY
HERZEGOVINA
TUNISIA
Block 7 
East Kanayis
Burren at a glance
Burren’s oil & gas assets consist of
operated producing ﬁelds and exploration
acreage in Turkmenistan, non-operated
producing ﬁelds and exploration acreage
in Congo (Brazzaville) and exploration
acreage in Egypt. 
Burren is listed on the UK Listing
Authority’s Ofﬁcial List and its shares 
are traded on the London Stock Exchange
where since June 2004 it has been 
a member of the FTSE 250 Index. 
Burren is headquartered in London.
Congo (Brazzaville)
Kouilou, Kouakouala and Pointe Indienne
Burren produces oil from 
three ﬁelds in Congo,
M’Boundi, Koukaouala 
and Pointe Indienne with
M’Boundi by far the most
signiﬁcant producer.
Kouilou,
Kouakouala 
and Pointe
Indienne
Egypt
Block 7 East Kanayis
Burren was awarded the onshore
East Kanayis block in the 2003
licence round and the PSC was
signed in September 2004.
Exploration activity will commence
in 2005 with seismic acquisition 
and the drilling of at least one
exploration well. Burren was
awarded, as preferred bidder, 
two further blocks in the 2004
licence round, one onshore 
and the other shallow offshore,
for which PSCs are expected 
be signed in 2005.
4,300 sq km
2,600 sq km
Burren Working Interest 100%
Operator Burren
Reserves (P+P) n/a
Burren Working Interest 
Kouilou/M’Boundi 35%
Kouakouala 25%
Pointe Indienne 35%
Operator Maurel & Prom
Net Production (31.3.05) 9,100 bopd
Reserves (P+P) 64.5 mm bbls BURREN ENERGY PLC ANNUAL REPORT AND ACCOUNTS 2004 05
GREECE
TURKE Y
CYPRUS
SUDAN
ERITREA
ETHIOPIA
AFRICAN
BLIC
ZA I R E
RWANDA
BURUNDI
UGANDA
KENYA
SOMALIA
ZAMBIA
TANZANIA
ARMENIA
SYRIA
IR A Q IR AN
SAUDI
ARABIA
QATAR
UNITED ARAB
EMIRATES
OMAN
YEMEN
INDIA
AFGHANISTAN
PAKISTAN
KYRGYZSTAN
TAJIKISTAN
SRI
LANKA
NEPAL
BHUTAN
BANGLADESH
BURMA
MALAWI
GEORGIA
YUGOSLAVIA
BULGARIA
ROMANIA
MOLDOVA
MACEDONIA
EGYPT
ISRAEL
TURKMENISTAN
Nebit Dag
Turkmenistan
Nebit Dag PSA
Burren’s operations in
Turkmenistan comprise the 
Nebit Dag PSA concession in
the west of the country. All of
Burren’s current production in
Turkmenistan comes from one
ﬁeld, Burun, which has been
producing since 1971 and
which Burren has operated
since 2000. Burren has
exploration rights over the 
rest of the Nebit Dag PSA
area which contains four other
developed ﬁelds operated 
by the state oil company.
India
Hindustan Oil Exploration Company
In February 2005 Burren purchased a 26% interest in HOEC, India’s
only publicly quoted E&P company outside the state-controlled
sector. Burren intends to increase its stake to as much as 51% 
via an open offer and the exercise of options, and to provide further
ﬁnancing at a later date as necessary to ﬁnance its major projects. 
HOEC has interests in the Cauvery basin, offshore Tamil Nadu; in the
Cambay basin, onshore Gujarat; and in Assam. Its major development
assets are in the Cauvery Basin, being a 100% operated interest in the
PY-1 block and a 21% non-operated interest in the PY-3 block.
Burren considers that HOEC represents an attractive opportunity 
to enter the Indian E&P sector.
1,047 sq km
Burren Working Interest 100%
Operator Burren
Net Production (31.03.05) 11,300 bopd
Reserves (P&P) 81.3 mm bbls 06 BURREN ENERGY PLC ANNUAL REPORT AND ACCOUNTS 2004
chief executive’s review
Burren intends to continue its focus on a
selected number of frontier regions, namely 
the Caspian region, West Africa, North Africa
and the Indian subcontinent, with a view to
achieving a balanced portfolio of development
and exploration opportunities in these markets.
A detailed summary of the year’s performance
by country is contained in the Review of
Operations, but the main achievements 
are summarised below.
Key achievements during the year
In Turkmenistan we drilled 10 development
wells on the Burun ﬁeld, of which seven were
shallow wells drilled using one of our own
truck-mounted workover rigs. These latter wells
have proved particularly economic, producing
an average of 350 bopd and paying back 
in under a month at US$35 Brent. As a result
of this drilling and the ongoing workover
programme on the existing well stock, average
production (net to Burren) increased by 37% 
to 9,300 bopd (2003: 6,770 bopd). A 540 
sq km 3D seismic grid over the Nebit Dag 
PSA area outside the Burun ﬁeld was acquired
and processed during the year. The result will
enable us to select locations for exploration
drilling in 2005. 
In Congo, 17 appraisal and development wells
were completed on the M’Boundi ﬁeld and one
on the Kouakouala ﬁeld. Average production
(net to Burren) increased to 4,900 bopd, over
3.5 times the 2003 level (1,370 bopd). After 
more than 30 wells drilled in total to date the
subsurface aerial extent of the M’Boundi ﬁeld
has still not been established and to this 
end a 3D seismic survey over areas totalling
230 sq km to the north and south of the 
ﬁeld was recently completed. Additionally an
aero-magnetic survey over the entire Kouilou
and Noumbi licence areas was carried out 
in 2004 in order to grade prospects for 2D
seismic in 2005. 
In Egypt, a PSC covering the 4,300 sq km East
Kanayis exploration block in the Western Desert
was signed in September 2004 and an ofﬁce 
in Cairo has now been established. Since the
end of the year Burren has been awarded two
further exploration blocks, North Lagia (1,457 
sq km) onshore in the northern Gulf of Suez
basin and North Hurghada Marine (242 sq km),
shallow offshore in the southern Gulf of Suez.
Negotiations are under way with a view to
concluding PSCs for these blocks during 
this year.
Since the year-end we have established 
a presence in a fourth country, India, via 
the acquisition of 26% interest in Hindustan 
Oil Exploration Company (“HOEC”), India’s 
only publicly quoted E&P company outside 
the state-controlled sector. Options to purchase
additional shares and an open offer to all
shareholders of HOEC will enable Burren 
to acquire up to a 51% equity interest in 
the company. We view this new investment 
as having material upside potential.
Plans and objectives for 2005
The major challenges for 2005 will be 
to make tangible progress with our newly
acquired assets in Egypt and India, and 
to drill successful exploration wells in
Turkmenistan and Congo. We willl continue 
the rapid development of our existing assets
with the aim of accelerating production to reap 
the beneﬁts of another year of high oil prices.
Finian O’Sullivan
Chief Executive Officer
During 2004 Burren has made
substantial strides forward. We
have continued the development
of our existing assets, laid 
down the foundations for the
continued future growth of the
business, and have diversiﬁed
our asset base into new 
areas in order to reduce the
concentration of country risk.  BURREN ENERGY PLC ANNUAL REPORT AND ACCOUNTS 2004 07
2005 will therefore see an acceleration of
development and appraisal drilling in Nebit 
Dag and M’Boundi. With the beneﬁt of the
seismic data acquired last year, we will start
exploration drilling in Turkmenistan, Congo 
and Egypt. In all up to 40 development and
appraisal wells should be drilled, roughly
equally split between Turkmenistan and 
Congo, and up to eight exploration wells 
of which up to two will be in Egypt. 
We aim to take Group net production from
20,400 bopd at present (Turkmenistan 
11,300 bopd and Congo 9,100 bopd) to 
at least 24,000 bopd by the end of the year
from development drilling alone, without
assuming any incremental production from
exploration drilling.
We will continue negotiations with the 
Turkmen authorities with a view to concluding
a gas sales contract, thereby commercialising
Burren’s signiﬁcant gas resources.
Capital expenditure is expected to be in 
the region of £100 million excluding the
acquisition costs of HOEC or any subsequent
equity injection, representing a doubling 
of 2004 expenditure. Some 25% of this 
sum is expected to be exploration related.
Approximately half of the expenditure will be 
in Turkmenistan, 40–45% in Congo, and up 
to 5% in Egypt.
Burren expects to provide additional funding
for HOEC to ﬁnance its major development
project, the PY-1 gas ﬁeld offshore Tamil Nadu.
HOEC has recently spudded an exploration
well in Assam, where Premier Oil is operator
(HOEC 25%) the results of which are expected
before mid-year.
Finally, we will continue to work towards the
disposal of our shipping business. Although 
it lost money last year due primarily to the 
loss of freight business when the Volga-Don 
canal was closed on two occasions following
accidents by third parties, the business 
is fundamentally proﬁtable. However it is 
now too small in a group context to be 
considered a core business.
Strategy
Burren’s medium term strategy is to build 
a focused portfolio of E&P asset clusters in
frontier markets where there are opportunities
arising from farm-ins, acquisitions or new
licence rounds. We wish to achieve critical
mass in each market in order to have the
presence and strength of relationship with
governments and local oil and gas companies 
to leverage the initial investment into new
business opportunities. Where possible we
seek to align ourselves with established local
interests via co-investment or proﬁt share
mechanisms in order to facilitate this process:
we have successfully adopted this approach 
in our recent entries into Egypt and India.
We recognise the desirability of harvesting
gains on investments at the appropriate point
in the project development cycle, particularly 
in circumstances where the value placed on
particular assets by third parties may materially
exceed our own valuations. We are constantly
looking out for opportunities to maximise value
for shareholders, whether as buyer or seller.
Outlook 
The outlook for 2005 is good. With production
(net to Burren) currently at 20,400 bopd 
I have every conﬁdence that we will be able 
to comfortably meet our stated target of
24,000 bopd by year-end. The current market
indicators would suggest crude prices will
remain above US$40 for most of the year 
and should this prove correct it would allow 
us to fund our full capex programme and 
the acquisition of up to 51% of HOEC from
operating cash ﬂow alone. The 2005 drilling
programme, in terms of both development/
appraisal and exploration wells, is a further
progression from 2004, and has the potential
to deliver growth in both production and
reserves. The Group’s balance sheet is strong
and I look forward to the year with conﬁdence.
Finian O’Sullivan
Chief Executive Officer
4 April 2005
2005
objectives
 Complete the acquisition of a 
majority interest in HOEC (India)
 Drill up to eight exploration wells in
Congo, Turkmenistan and Egypt
 Accelerate development drilling 
in Nebit Dag and M’Boundi
 Production at least 24,000 bopd net 
by year end
key strengths
 Experience in operating in frontier markets, with their complexities 
in terms of politics, regulation, logistics and access to skilled labour
 Track record of cost control as operator , exemplified by the low operating 
cost of under US$2.00* per entitlement bbl achieved in Turkmenistan last year
 Culture of value creation in deals, exemplified in the acquisition of the 
Congo assets in 2002/3
 The individual experience, competence and balance of our management team
* before depreciation and administrative expenses  Turkmenistan gained independence
from the Soviet Union in 1991 and
is one of ﬁve countries bordering 
the land-locked Caspian Sea.
Historically, gas production has
dominated the Turkmen energy
sector with an extensive network 
of pipelines linking the Turkmen 
gas ﬁelds in the east to the
Gazprom pipeline system.
.
 More recently, the Government 
has focused attention on the
development of oil and gas
reserves in Western Turkmenistan
(including offshore Caspian) where
together with the Burren PSA,
there exist ﬁve PSAs operated 
by international companies.
37 %
increase over 2003
9,3 0 0 bopd
average production in 2004
81 .3 millionbarrels
proven & probable entitlement reserves
129 .1 millionbarrels
proven & probable working interest reserves Turkmenistan
Nebit Dag 
Burren working interest 100%
Operator Burren
Description and history
The Nebit Dag Production Sharing Agreement
(“PSA”) area, located onshore in western
Turkmenistan extends over 1,047 sq km.
Burren has production rights to the Burun ﬁeld,
one of ﬁve developed oil and gas ﬁelds within
the PSA area, and exploration rights over the
whole PSA area. The other four ﬁelds within 
the PSA area (Kyzl Kum, Kum Dag, Kara Tepe
and the Nebit Dag ﬁeld itself) are operated by
the state oil company Turkmenneft, with Burren
having exploration and production rights below
certain depths. The PSA and the related
production and exploration licence run until
2022, and may be extended for a further 
10 years by mutual agreement.
The PSA was signed in August 1996 by a
consortium comprising Monument, Mobil 
and Burren, and oil exports began in 1998. 
In August 2000, Burren acquired the interests 
of Monument and Mobil and took 100%
control together with the Operatorship. 
The bulk of the work performed under the 
PSA to date has concentrated on the Burun
ﬁeld, located to the west of the PSA area. 
This ﬁeld was discovered in 1966 with
production commencing in 1971. Since
acquiring Operatorship, Burren has focused 
on generating cash ﬂow from Burun via
reducing operating costs and increasing
production. Costs have been reduced
principally by eliminating expensive western
sub-contractors and western personnel,
owning and operating most oil ﬁeld services
(workover rigs, well-test units, wireline units),
and building a qualiﬁed local workforce
(currently some 800 staff). Production has 
been increased by re-activating previously
shut-in wells through re-completions and 
the installation of gas-lift throughout the ﬁeld. 
Up to the end of 2004, about 61 million barrels
had been produced from the Burun ﬁeld with 
a total of 220 wells drilled of which about 
150 are currently useable. Of these 150 
wells, 120 are producing with the remaining
wells shut-in awaiting workover. Development
to-date on the Burun ﬁeld has been on the
north ﬂank whilst the south ﬂank remains 
to be appraised and developed. 
Burun crude is a light high quality low sulphur
crude with an API gravity of 33º. Burren has
unrestricted rights to the export of its share 
of crude, which is sold FOB Turkmenistan 
at a discount to dated Brent.
Operations
During 2004, gross production from the Burun
ﬁeld averaged 15,500 bopd (9,300 bopd net 
to Burren) an increase of 23% (37% net) over
2003. This increase was achieved through 
a continuing programme of workovers to 
re-complete shut-in wells and the drilling of 
both shallow (down to 1,200 metres) and deep
(down to 4,500 metres) in-ﬁll development 
wells. The shallow drilling has been particularly
successful: as at the end of 2004, the eight
shallow wells drilled by Burren were contributing
about 16% of ﬁeld production at an average rate
of over 350 bopd. The incremental cost of these
shallow wells, drilled using one of Burren’s 
own workover rigs, is about US$250,000 
per well which makes the economics 
extremely attractive.
Two more workover units were acquired during
the year making a total of ﬁve working in the
ﬁeld, one of which, as mentioned above, is
utilised for shallow drilling. A deep drilling rig
was active throughout the year completing 
three inﬁll development wells. During 2005 
we are aiming to drill at least 12 shallow wells 
and up to six development wells on the north
ﬂank of the Burun ﬁeld.
Regarding production operations, two
compressors to provide high-pressure 
gas for gas-lift operations were successfully
commissioned in 2004 and the plan is to 
install a further four compressors during 2005. 
It is also hoped during 2005 to start a pilot 
water-injection scheme as well as upgrading 
the crude processing plant to handle the 
larger anticipated produced volumes.
As at the end of March 2005 production 
was 18,000 bopd gross, (11,300 bopd net 
to Burren).
Exploration 
During 2004 we drilled the ﬁrst Burren-operated
deep well in the largely unappraised south 
ﬂank of the Burun ﬁeld. This well encountered
abnormally high reservoir pressures of about
12,000 psig which exceeded the design
pressure of the test equipment. The well was
therefore suspended. Specialist high-pressure
equipment has been mobilised and it is planned
this year to re-enter this well to complete
production testing operations.
3D seismic data over a 540 sq km area 
within the Nebit Dag PSA area but outside of the
Burun ﬁeld was acquired during 2003 and 2004
and interpretation should be completed shortly.
This will allow the start, later this year, of
exploration drilling for which a second deep
drilling rig, capable of pressures up to 15,000
psig, has been contracted and is due to arrive in
Turkmenistan in mid 2005. We expect to drill two
exploration wells in the second half of this year.
review of operations
BURREN ENERGY PLC ANNUAL REPORT AND ACCOUNTS 2004 09
15,498
9,300
6,770
4,333
2,620
1,033
12,634
10,075
8,219
7,524
Oil production (barrels per day)
00 01 02 04 03
gross net
111
Number of wells
98
86
64
55
Turkmenistan wells on production at year end
00 01 02 04 03
Atul Gupta
Chief Operating Officer  The Republic of Congo is 
an established oil producing
countries in west Africa with
current production of about
180,000 bopd. Prior to the
discovery of the onshore
M’Boundi ﬁeld, production 
in Congo had been almost
exclusively from offshore
acreage with Total and 
Agip being the major
international participants.
257 %
increase over 2003
4, 900 bopd
average production in 2004
64.5 millionbarrels
proven & probable entitlement reserves
116. 4 millionbarrels
proven & probable working interest reserves BURREN ENERGY PLC ANNUAL REPORT AND ACCOUNTS 2004 11
Congo
Kouilou (including M’Boundi),
Kouakouala, Pointe Indienne and 
La Noumbi
Burren working interest:
Kouilou (including M’Boundi field) 35%
Kouakouala 25%
Pointe Indienne 35%
La Noumbi* 37%
Operator Maurel & Prom
* Subject to parliamentary approval
Description and history
The Kouilou, Kouakouala and Pointe Indienne
licences, located onshore along the Atlantic
coast of the Republic of Congo, extend over
an area of about 2,600 sq km. and contain
three producing ﬁelds: M’Boundi, Kouakouala
and Pointe Indienne, of which M’Boundi is by
far the largest.
Burren’s interest in Congo was ﬁrst initiated in 
the mid 1990s with a technical and commercial
alliance with Tacoma Resources (now a wholly
owned subsidiary of Burren), which at that time
was a subsidiary of a Geneva based trading
company operating in Congo and other parts 
of West Africa. Tacoma Resources subsequently,
along with a consortium of other companies,
signed in late 1996 production sharing
agreements covering the Kouakouala 
and Kouilou licences. Maurel & Prom, 
the current Operator, farmed-in to these
agreements in 1999.
The Kouakouala ﬁeld was initially discovered 
by Elf (now Total) in 1993 and the discovery 
put on permanent production by the present
consortium in 2000. Since then three additional
producers have been drilled. The M’Boundi ﬁeld,
contained within the Kouilou PSA licence area,
was discovered in 2001 and started production
in mid 2002 from two wells. Development drilling
started a year later and has continued
uninterrupted since with a total of 31 wells
drilled as at the end of March 2005 of which 
all but one well has encountered hydrocarbons.
The ﬁelds are connected by pipelines to 
the Djeno export terminal, a distance from
M’Boundi of about 40 km, operated by Total.
All of the crude produced by M’Boundi and
the other Burren ﬁelds is processed at Djeno
and sold to Total on an FOB basis. 
A PSC governing the 2,830 sq km La Noumbi
area, which lies adjacent to and north of the
Kouilou block and was awarded in 2003, was
signed by the Ministry of Hydrocarbons in
2004 and is awaiting formal approval by the
parliament, which is expected during 2005. 
Operations
During 2004 total production in Congo net to
Burren averaged 4,900 bopd compared with
1,370 bopd in 2003. 95% of this production
came from the M’Boundi ﬁeld. 
M’Boundi field
Seventeen wells were completed on M’Boundi
in 2004, with three drilling rigs working
continuously on the ﬁeld during the year. 
Gross production increased over the year 
from 7,000 bopd to over 30,000 bopd by year
end. Initial ﬂow rates on new wells averaged
between 1,500 and 4,000 bopd. All wells ﬂow
naturally and so far there has been negligible
water production. Since year-end a further six
wells have been drilled and as at the end of
March 2005 production was 35,200 bopd
gross (9,100 bopd net to Burren) from 26
producing wells. 
Up to 22 additional development wells are
planned on M’Boundi for 2005 with the likely
addition of a fourth drilling rig in the near 
future. Upgrading of facilities will continue 
to allow a production capacity of 60,000 
bopd, and a pilot water-injection project 
is being considered.
Notwithstanding the intensive drilling 
activity, ﬁeld limits in certain parts of the 
ﬁeld still remain undeﬁned. A 230 sq km 
3D seismic survey to the north and south of 
the main structure was recently completed,
interpretation of which is expected to have
been completed by mid year. Appraisal drilling
to test these extensions is planned for later 
in the year.
Kouakouala field
One well was drilled in 2004 and at the end 
of March 2005 ﬁeld was producing 1,900 bopd
gross. An appraisal well to the south of the
ﬁeld is currently drilling and there are plans 
in 2005 to start water-injection to enhance 
ﬁeld recovery.
Exploration
Exploration potential is contained within 
the 2,400 sq km area of the Kouilou licence
outside the M’Boundi ﬁeld. A high-resolution
aero-magnetic survey has been completed
over the entire licence area and a 2D seismic
survey over selected prospects is under way.
The current plan is to start exploration drilling
before mid-year. Up to three such wells are
expected to be drilled in 2005.
In La Noumbi the main exploration focus will
be the Doungou prospect, which would appear
to lie on trend with the M’Boundi ﬁeld, although
further exploration opportunities have been
identiﬁed in the block. Subject to timely approval
by the Government, an exploration well is
expected to be drilled during 2005.
review of operations
19,848
4,900
1,370
5,821
2,860
Oil production (barrels per day)
02 03 04
gross net
4,872
24
10
5
Congo wells on production at year end
02 03 04
Number of wells 6, 000 sq km
total exploration area
3
exploration blocks 
awarded to date 
(two subject to signature) BURREN ENERGY PLC ANNUAL REPORT AND ACCOUNTS 2004 13
Egypt
Description and history
Burren’s activity in Egypt began in 2003 with
the award in that year’s licence round of the
4,300 sq km East Kanayis block, located
onshore in the Western Desert about 150 km.
south west of Alexandria. The PSC for this
block was signed in September 2004, and
Burren’s Cairo ofﬁce was also established 
in that year.
In early 2005 Burren was notiﬁed that it had
been selected as successful bidder for two
exploration blocks in the 2004 bid rounds,
namely North Lagia, an onshore area in 
the northern Gulf of Suez basin totalling 
1,457 sq km and North Hurghada Marine, 
an offshore block covering 242 sq km 
in a shallow water area in the southern 
Gulf of Suez. 
Burren has established an association with 
a local enterprise, Goura Oil, who provide
commercial, technical and logistical assistance
and advice, in return for carried interests in
certain blocks. Burren is the Operator for all
the Egyptian blocks.
East Kanayis Block 7 
Burren working interest: 100%
Operator Burren
The geological section for this block consists 
of Cretaceous and Jurassic reservoirs: at 
least ﬁve main reservoirs have been identiﬁed
in the area. The oil quality in the Cretaceous
reservoirs is generally around 33º API and is
lighter in the Jurassic section where both gas
and condensate is typically trapped. 
The area has been worked since the 1960s by
various companies, including Conoco Phillips,
Shell, IEOC and Repsol. Immediately to the
east lies a chain of producing Cretaceous
oilﬁelds which were discovered during this
period, and other discoveries have been 
made in the surrounding areas, notably to 
the west where Apache has found signiﬁcant
quantities of gas. A substantial database of
7,000 km of 2D seismic over the block exists
as result of this earlier activity. The block is
crossed by oil and gas pipelines.
The initial exploration period is three years, 
and is extendable for two further periods of
two years. A review and remapping of the
existing dataset is now virtually completed and
work is under way to be in a position to drill up
to two exploration wells in 2005, as well as a
simultaneous programme to acquire around
300 km of 2D seismic. 
Additional blocks 
(subject to signature)
Burren working interest:
North Lagia 90%
North Hurghada Marine 100%
Operator Burren
Following the award of these blocks in
February 2005 negotiations are in progress
with a view to signing the PSCs for both
blocks in the second half of the year. 
The North Lagia block, covering 1,457 sq km,
contains four producing ﬁelds (all excluded
from the award). The ﬁrst drilling on the block
was by Shell and Mobil in the late 1940s, and
since the 1960s the ﬁelds have been operated
by the state-owned General Petroleum
Corporation. The most recently discovered
ﬁeld, the Lagia ﬁeld, was discovered in 2000.
The existing dataset indicates the possible
presence of several undrilled structures, but
further gravity and seismic data acquisition 
will be necessary to delineate these.
The North Hurghada Marine block, covering
242 sq km, lies along a trend of oil and gas
ﬁelds to the north and the southeast. Water
depths are less than 50 metres. The ﬁeld 
has been dormant since 1987 when Conoco
withdrew and the area reverted to EGPC. 
A 2D dataset, dating from the mid 1980s,
exists over the block, from which several 
leads have been identiﬁed. The nearest 
oil and gas pipeline access points are at 
Zeit Bay, some 30 km away.
Atul Gupta
Chief Operating Officer
4 April 2005
review of operations 14 BURREN ENERGY PLC ANNUAL REPORT AND ACCOUNTS 2004
financial review
Once again Burren recorded
signiﬁcant increases in revenues,
proﬁts and operating cash ﬂow
in 2004 as a result of the
combination of production
growth and higher oil prices. 
The Group ﬁnished 2004 with 
a strong balance sheet: at the
year-end total debt outstanding
was £2.5 million, against cash
balances of £20.9 million.
Revenues 
Average production, on an entitlement basis,
rose by 74% to 14,200 bopd (2003: 8,140
bopd). Revenues rose by 85% to £87.1 million,
driven primarily by an increase of 69% in the
volume of oil sold to 5.1 million barrels. Of total
revenues £80.6 million related to crude oil sales
and the balance to shipping. 
The average realised oil price over the year,
before hedging losses, was US$34.40 per
barrel, compared with US$24.31 in 2003. 
This represents an average discount to Brent 
of US$5.35 compared with US$4.75 in 2003,
as a result of increased differentials last year
between prices for light sweet crudes and
heavier crudes owing to greater market
demand for the former. Whilst Burren crudes
from both Turkmenistan and Congo are at 
the lighter end of the API range, they are 
both blended with heavier crudes which
affected the realised price. 
The oil price risk on a total of 2.5 million 
barrels (approximately 50% of sales volumes)
was hedged via Brent price collars at an
average cap price of US$27.83 per barrel,
resulting in revenue reductions of £14.1 
million (2003: £3.2 million), or an average 
of US$5.13 (2003: US$ 1.76) per barrel sold.
These hedges were entered into in mid 2003
when Burren’s external sources of ﬁnance were
limited. Given the Group’s current ﬁnancial
resources a similar degree of hedging is no
longer considered necessary in future.
Cost of sales & profits
Cost of sales increased by 50% to £30.6
million. Average production costs per entitlement
barrel, before allocation of central administrative
costs, were US$3.08 (2003: US$3.68). Group
unit depletion and depreciation charges were
US$5.63 per entitlement barrel (2003: US$4.23
per barrel), reﬂecting the higher proportion of
production in 2004 from Congo where the
depletion charge is higher. Gross proﬁt before
administrative expenses was £56.5 million
(2003: £26.7 million). Of this, £41.5 million
(73%) arose from Turkmenistan, £15.4 million
(27%) from Congo and Shipping suffered a
£0.4 million loss. By comparison in 2003
Turkmenistan accounted for 86% of gross
proﬁt and Congo 10%.
Shipping was affected by the loss of freight
revenue owing to the closure on two occasions 
of the Volga-Don canal following accidents
suffered by third parties, combined with increased
special survey expenses to comply with stricter
regulatory standards. Both of these factors are
viewed as unlikely to be repeated in 2005. 
Administrative expenses grew by 14% to 
£7.5 million (2003: £6.6 million), of which 
£4.5 million (2003: £3.4 million) relates to
incentive schemes. Within this ﬁgure is a 
£2.6 million charge arising from the impact 
of the share price increase in 2004 on Burren’s
liability under certain unvested share scheme
awards made in previous years, most of which
relates to National Insurance.
Finance charges were negligible at £0.6 million.
The taxation charge of £9.7 million related
substantially to proﬁts arising in Turkmenistan, 
of which all but £1.0 million was deferred tax.
Proﬁt after tax was £38.8 million, well over
double the 2003 ﬁgure of £16.2 million.
Earnings per share were 28.4 pence basic
(27.1 pence diluted), an increase of 69% 
and 74% respectively over 2003. A maiden
dividend of 3.0 pence per share has 
been declared.
Cash flow and capital expenditure
Operating cash ﬂow rose by 91% to £54.6
million (2003: £28.5 million) as a result of 
higher sales volumes and higher realised 
prices. Net interest paid was £0.6 million 
(2003: £1.9 million). Tax paid was negligible.
Capital expenditure rose by 96% to £50.1
million. The net cash inﬂow before ﬁnancing
was £3.8 million which, together with 
£0.6 million of equity from exercise of warrants
and options, ﬁnanced the net repayment of
£4.5 million of debt and ﬁnance leases.
Balance Sheet and financing
At year-end share capital and reserves were
£139.4 million (2003: £108.4 million). Debt
outstanding (including ﬁnance leases) was 
£2.5 million (2003: £3.2 million), all of which
relates to the shipping business and is 
non-recourse to the rest of the group. 
Andrew Rose
Chief Financial Officer BURREN ENERGY PLC ANNUAL REPORT AND ACCOUNTS 2004 15
Cash balances at year-end stood at £20.9
million, virtually unchanged from balances 
at year-end 2003 (£20.8 million). 
As a result of increased revenues from the
Burun ﬁeld, a further threshold was passed 
in 2004 triggering an additional £6.1 million
payment in relation to the partial acquisition of
Burren’s interest in the Nebit Dag PSA in 2000.
This amount will become payable in 2005.
In order to provide additional ﬁnancial ﬂexibility
to pursue investment opportunities Burren is 
in the process of negotiating a new US$100
million revolving loan facility.
Hindustan Oil Exploration Company
(“HOEC”)
Since year-end Burren has purchased a 
26% interest in HOEC for £14 million, and has
announced an open offer for a further 20%.
US$25.1 million has been placed in an escrow
account in relation to this offer. In addition
Burren has entered into conditional purchase
agreements in respect of a further 15% 
interest to enable the Group to acquire up 
to a maximum 51% interest for an aggregate
cost of £29 million. Burren expects to contribute
additional funds to HOEC to enable it to
complete its development projects.
Shareholders
During the last 12 months the pre-Flotation
shareholders have placed a total of 46.5 million
shares in Burren, equivalent to 33.7% of current
outstanding share capital, with institutional
investors in two transactions, in July 2004 
and January 2005. As a result the free ﬂoat 
of Burren now stands at 63% compared with
31% immediately after Flotation.
Risk management
The Audit Committee’s terms of reference
include reviewing the effectiveness of the 
Group’s internal control procedures and the
identiﬁcation and management of risk in its
widest forms. A full internal analysis of risks 
to Burren’s business was undertaken last 
year and considered by the Audit Committee,
and procedures are in place for the regular
appraisal and monitoring of ﬁnancial and
operating risk. The framework of delegated
budgetary authority has been reviewed and
updated, with a schedule of matters reserved
expressly to the Board, and procedures are in
place governing ﬁnancial controls and review 
of material contracts prior to signature.
Burren undertakes oil price hedging transactions
periodically, with express Board approval, to
protect operating cash ﬂow against oil price
volatility. In respect of 2005, zero cost collars
have been entered into for 1.0 million bbls with
a ﬂoor price of US$28.00 and a ceiling price 
of US$30.15. No hedges have been taken out
for periods ending after 31 December 2005.
Burren’s policy is only to enter into oil price
hedging as necessary to ensure the sufﬁciency
of future cash ﬂows to ﬁnance anticipated
expenditure and debt service, in the context 
of available ﬁnancial resources.
In economic terms Burren suffers only modest
currency exchange rate exposure given that
the revenues and costs of the business arise
predominantly in US dollars. For 2005 US$/£
forward exchange contracts have been entered
into at an average rate of US$1.906/£1 in
order to hedge the sterling overhead costs 
of the London head ofﬁce. 
All outstanding debt is at ﬁxed rates and 
thus no interest rate hedging activity has 
been undertaken.
Burren maintains accident and liability insurance
for its upstream assets in Turkmenistan and
Congo in line with prudent international oilﬁeld
practice and a liability policy covering its
directors and ofﬁcers. It also maintains hull 
and machinery, and protection and indemnity
insurance policies in respect of its shipping
ﬂeet, in accordance with international shipping
practice. Burren has a policy not to insure
against political risk except to the extent
required under loan agreements, since it
considers that this is a risk which shareholders
accept by virtue of their decision to invest in
the Company.
IFRS transition
In common with other EU listed companies
Burren will be reporting under International
Financial Reporting Standards (“IFRS”) in
respect of the 2005 ﬁnancial year. An analysis
of the likely effects of IFRS on Burren’s ﬁnancial
statements and the consequential demands on
the internal systems and controls is close to
completion. The main changes compared with
UK GAAP are likely to be in the treatment of
hedges, share incentive schemes, deferred 
tax and pre-licence acquisition costs. Burren
intends to publish the restated 2004 results
under IFRS prior to issuing its 2005 interim
IFRS ﬁnancial statements later this year.
The impact of IFRS is primarily on the reported
proﬁts and the balance sheet. Cash ﬂow will not
be affected although the presentation may alter.
In conjunction with certain other UK listed E&P
companies a communications effort has been
initiated to appraise broker research analysts of
the generic impact of IFRS on the E&P sector’s
ﬁnancial statements.
Reporting currency
Burren reports its ﬁnancial statements in
sterling, notwithstanding that its functional
currency is in US dollars.
The US dollar depreciated over the year 
by 6.8% to US$1.92/£1.00 at year-end
(31.12.03 US$1.79/£1.00), and the average
exchange rate of US$1.84/£1.00 was 10.4%
below that for 2003 (US$1.64/£1.00). This
exchange rate movement had an adverse
impact on 2004 reported results.
Andrew Rose
Chief Financial Officer
4 April 2005
Proﬁt after tax was £38.8 million, well over double the 2003 
ﬁgure of £16.2 million. Earnings per share were 28.4 pence basic 
(27.1 pence diluted), an increase of 69% and 74% respectively 
over 2003. A maiden dividend of 3.0 pence per share has 
been declared. 16 BURREN ENERGY PLC ANNUAL REPORT AND ACCOUNTS 2004 16 BURREN ENERGY PLC ANNUAL REPORT AND ACCOUNTS 2004
board of directors
chairman
Finian O’Sullivan
Chief Executive Officer 
Finian O’Sullivan, age 50, holds a degree in geology
and geophysics from University College Galway and
was responsible for creating Burren in 1994. Before
this Finian pursued an international career spanning
17 years in geophysics and seismic acquisition with
Chevron, Geophysical Systems and Olympic Oil
and Gas.
Atul Gupta
Chief Operating Officer 
Atul Gupta, age 45, holds degrees in Chemical
Engineering from Cambridge University and
Petroleum Engineering from Heriot-Watt University
and has worked for 20 years in international oil 
and gas production operations with Charterhouse
Petroleum, Petroﬁna and Monument. Atul joined
Burren in January 1999. 
Andrew Rose
Chief Financial Officer 
Andrew Rose, age 48, holds a degree in Engineering
from Cambridge University, but has spent the greater 
part of his career in investment banking, working 
in advisory, capital markets and structured ﬁnance
roles. He joined Burren in 2001, having previously
been co–head of corporate ﬁnance for Central and
Eastern Europe and the Middle East–North Africa
region at Socièté Générale.
Brian Lavers CBE
Non-Executive Chairman
Brian Lavers, age 69, led a distinguished career 
with Royal Dutch Shell spanning 32 years, culminating
with his appointment as Chairman and Managing
Director of Shell Nigeria. From 1992 to 1998, Brian
was Chairman and Chief Executive of Phibro
Production Inc and joined Burren as Chairman 
in January 1999.
executive 
directors BURREN ENERGY PLC ANNUAL REPORT AND ACCOUNTS 2004 17
non-executive
directors
Keith Henry (Independent Director)
Keith Henry, age 59, is a Non-Executive Director 
of Emerald Energy and Petroleum Geo-Services. 
He has served as Chief Executive of Kvaerner
Engineering and Construction, National Power, and
Brown & Root–Europe. He was also a Non-Executive
Director of Enterprise Oil and has over 30 years
experience in the energy industry. His appointment
as an independent Non-Executive Director took 
effect as of 31 March 2005.
Andrei Pannikov 
Andrei Pannikov, age 55, is the founder of Sunﬂoat
and is principally involved in transportation and
trading activities in Russia and the former Soviet
Union. Prior to founding Sunﬂoat he worked with 
the Russian Government and was subsequently 
co-founder of Lukoil and Urals Trading.
Pierre Lasry
Pierre Lasry, age 45, is a Managing Director 
of the Tacoma group, which participates in oil
trading, reﬁning, distribution and exploration, and
production, primarily in West Africa. He has 20
years’ experience in the oil and gas industry and 
has been with Tacoma since 1993. Prior to that 
he worked with Addax and Cargill.
Alan Cole (Independent Director)
Alan Cole, age 63, was a Board member of Christian
Salvesen plc and, for eight years, Chief Executive of
TDG plc. He was Non-Executive Chairman of both
The Oliver Group plc and Alldays plc, and is currently
Chairman of JPMorgan Fleming Income and Growth
Investment Trust plc. His current non-executive
positions include London International Exhibition
Centre Holdings and NAAFI. He was appointed as an
independent Non-Executive Director in October 2003.
Michael Calvey
Mike Calvey, age 37, is Managing Director of Baring
Vostok Capital Partners, the manager of several major
funds associated with investment in Russia and the
former Soviet Union. He has been closely involved
with Burren since its formation in 1994. 18 BURREN ENERGY PLC ANNUAL REPORT AND ACCOUNTS 2004
board of directors
Brian Thurley
T echnical Director
Brian Thurley, aged 54, holds a degree in geology
from Imperial College London and has led an
international career in exploration, development 
and new ventures in South America, Africa,
Central Asia, the Far East and Australia. Brian 
joined Burren in 1996.
Hywel John
Company Secretary,
Legal and Commercial Director
Hywel John, age 41, holds a degree in economics
and law from Cambridge University. A Chartered
Accountant, he joined Burren in 2000 following 
15 years’ upstream experience in the United States
and the United Kingdom, most recently as Finance
Director of PowerGen North Sea.
John Stanton
Director of Shipping
John Stanton, age 68, is a Chartered Engineer and
member of both the Institute of Marine Engineers and
Royal Institution of Naval Architects. Before joining
Burren in 1997, he spent over 40 years in shipping,
ship management and marine projects.
senior 
management BURREN ENERGY PLC ANNUAL REPORT AND ACCOUNTS 2004 19
Registered number
3492720
Board of Directors
Executive
Finian O’Sullivan
Atul Gupta
Andrew Rose
Non-Executive
Brian Lavers CBE, Chairman
Michael Calvey
Keith Henry
Andrei Pannikov
Alan Cole
Pierre Lasry
Secretary
Hywel John 
Registered office
Kierran Cross
2nd Floor
11 Strand
London WC2N 5HR
Bankers
The Royal Bank of Scotland plc
54 Lime Street 
London EC3 3TR
Natexis Banques Populaires
45, Rue Sainte-Dominique
75007 Paris
France 
Financial adviser and stockbroker
Seymour Pierce Ltd
Bucklersbury House
3 Queen Victoria Street
London EC4N 8EL 
Solicitors
Travers Smith Braithwaite
10 Snow Hill
London EC1A 2AL 
Auditors & tax advisers
Deloitte & Touche LLP
Hill House
1 Little New Street
London EC4A 3TR
Financial public relations
Gavin Anderson & Company
85 Strand
London WC2R 0DW 
Petroleum consultants
Ryder Scott Company, L.P .
1100 Lousiana, Suite 3800
Houston
Texas 77002-5218 USA
Registrars
Computershare Investor Services plc
The Pavilions
Bridgewater Road
Bristol BS99 7NH 
officers and
professional advisers 20 BURREN ENERGY PLC ANNUAL REPORT AND ACCOUNTS 2004 20 BURREN ENERGY PLC ANNUAL REPORT AND ACCOUNTS 2004
corporate and social 
responsibility
Burren’s corporate and 
social responsibility (“CSR”)
principles encompass our
relationships with all our
stakeholders, namely our
employees, shareholders,
suppliers and customers, 
as well as the communities 
and environment within 
which we operate. 
We aim to conduct all our business operations
to the highest standards and are committed to
socially and ethically responsible behaviour 
in all areas. 
Social/Community
Burren aims to engage actively with the local
communities where it operates via investment
and community relations programmes.
In Turkmenistan we have recruited extensively
locally and seek to promote local personnel
into managerial positions. We have funded the
purchase of certain equipment for the local
town council and provided training in the UK
for technical staff. We continue to provide
ongoing ﬁnancial assistance to a local
orphanage and we sponsor and ﬁnance 
a local youth football team.
Burren is funding three annual scholarships
open to Turkmen nationals for post-graduate
studies in applied economics at the University
of Reading.
Where we are not the operator but have a
material participating interest, as in Congo, 
we still consider it our responsibility to promote
community engagement via the Operator. 
In Congo Maurel & Prom, the Operator, have
constructed and equipped a school in 
Mboussi near the Kouakouala ﬁeld, drilled 
a water well for villagers in the M’Boundi 
area and is working with the community 
on a project to provide a health care centre.
Ethical
Burren aims to conduct all its business with
integrity, honesty and fairness. The paying or
receipt of bribes in any form is unacceptable.
We support the aims of the Extractive Industries
Transparency Initiative (“EITI”) to increase
transparency over payments and revenues 
in the extractive sector in countries which 
are heavily dependent on such resources.
Governance
The Group applies the principles of good
governance set out in Section 1 of the Revised
Combined Code (“the FRC Code”) issued in
July 2003 as described on pages 27 to 29.
Employment
Burren is an equal opportunity employer 
where recruitment, remuneration and career
progression are not inﬂuenced by race or
ethnic origin, sex or marital status, with full
consideration being given to disabled persons.
We encourage team performance whilst
recognising individual contributions.
We are committed to recruiting and retaining
talented individuals and in order to promote
career development we aim to provide our 
staff with access to relevant external training
schemes and courses. We encourage
membership of professional bodies 
where appropriate.
We recognise the need to consider continually
changes in shareholder opinions and the
market’s requirements in the CSR arena. To
this end we intend to commission an external
CSR review of our operations in 2005. BURREN ENERGY PLC ANNUAL REPORT AND ACCOUNTS 2004 21 22 BURREN ENERGY PLC ANNUAL REPORT AND ACCOUNTS 2004
health, safety and
the environment
During 2004, our operated businesses were
mainly the upstream operations in Turkmenistan
and our shipping operations in the Caspian
and Russia, whilst our only non-operated
assets were in Congo. During 2005, our
portfolio of operated assets will expand to
include Egypt and in India where we are in 
the process of becoming a major shareholder
of an Indian listed upstream company.
Operating in all of these locations presents
signiﬁcant Health, Safety and Environmental
(HSE) challenges. We are conscious of these
risks and are committed at the most senior
level to addressing them. Cognisant of our
responsibilities our Executive Directors and
senior management are actively involved 
in the management of these issues to ensure
that the highest standards are being achieved.
We are endeavouring to conduct our operations
in a manner which protects the environment,
people and property and which complies with
applicable national legislation.
In Turkmenistan, which during 2004 represented
our major operated asset, we have in place an
HSE management system. This management
system sets out our policy, standards and
procedures through which we can and will
systematically manage and ensure the health
and safety of our employees and others, and
protect the environment. Our safety performance
in Turkmenistan is measured and reported
using various industry indices which are
compared against international averages and
each year revised targets set. One important
index that we track, is the number of fatalities
during the year. In respect of 2004 we are
pleased to report that this ﬁgure was zero. 
As in the previous year we commissioned an
external, international organisation to conduct
an independent HSE audit of our Turkmenistan
operations, the results of which will be used 
to update and improve the local HSE
management system.
For our shipping operations, we operate under
the International Maritime Organisation (IMO)
code that sets out internationally accepted
procedures related to HSE and other matters.
All our tankers are certiﬁed annually, and are 
in compliance with the International Safety
Management (ISM) code. We are pleased to
report that during 2004 there were no fatalities,
regulatory incidents or violations associated
with our shipping operations.
In Congo, the Operator Maurel & Prom has
policies and procedures in place for management
of health and safety and protection of the
environment. It is sad to report that one of
Maurel & Prom’s sub-contractors was fatally
injured during the year. During 2005, we
intend, subject to agreement with Maurel 
& Prom, to commission an independent 
audit of these operations.
Looking forward to 2005 we are planning 
to undertake a number of initiatives to 
further develop our HSE systems including
implementing an HSE governance programme
and updating our Corporate HSE management
system to reﬂect the enlarged portfolio.
We are endeavouring to
conduct our operations in
a manner which protects
the environment, people
and property and which
complies with applicable
national legislation. BURREN ENERGY PLC ANNUAL REPORT AND ACCOUNTS 2004 23
reserves
Reserves
The Group’s proved and probable reserves by region as at 31 December 2004, and changes during the year, are shown below. 
Entitlement reserves represent Burren’s share of expected future production net of Government share in that production under the terms of the PSCs 
in question. Government production share is impacted inter alia by assumptions as to future oil prices. Burren’s PSCs all provide for the Operator’s 
costs to be substantially recovered via a priority allocation of oil production (the “Cost Oil”). As oil prices increase, the amount of Cost Oil required 
to recover past costs reduces, thereby reducing the Operator’s share in production and so reducing reserves.
Working Interest reserves represent the percentage of future production (before deducting Government share) attributable to Burren’s joint 
venture participating interest.
Turkmenistan Congo Total
Proven and Proven and Proven and
Proven probable Proven probable Proven probable
Entitlement basis mmbbls mmbbls mmbbls mmbbls mmbbls mmbbls
As at 31 December 2003 31.9 96.3 8.6 23.0 40.5 119.3
Revisions (before changes to oil price forecasts) 9.6 -4.2 10.0 49.4 19.6 45.3
Revisions arising from changes to oil price forecasts -3.2 -7.4 -1.3 -6.2 -4.5 -13.6
Production -3.4 -3.4 -1.7 -1.7 -5.2 -5.2
As at 31 December 2004 34.9 81.3 15.6 64.5 50.5 145.7
Working interests basis
As at 31 December 2003 39.6 141.3 13.3 38.2 52.9 179.5
Revisions 12.8 -8.0 15.0 80.7 27.8 72.7
Production -4.2 -4.2 -2.5 -2.5 -6.7 -6.7
As at 31 December 2004 48.2 129.1 25.8 116.4 74.0 245.5
Entitlement reserve numbers at 31 December 2004 have been veriﬁed by Ryder Scott Company L.P ., who have conﬁrmed in writing that they have been
prepared in accordance with generally accepted procedures for the estimation of future reserves, and that the proved reserves correspond to the deﬁnition
used by the Society of Petroleum Engineers/World Petroleum Congress (SPE/WPC).
No estimation has been made of the Group’s gas reserves, owing to the absence of a gas sales agreement necessary for commercialisation.
Entitlement reserves at 31 December 2004 were computed using an assumed Brent oil price of US$25/bbl from 2006 onwards, whereas at 31 December
2003 a price of US$19/bbl was assumed for this period. The effect of this increase in assumed future oil prices has been to reduce Group entitlement reserves
by 13.6 million bbls, although the monetary value of the Group’s reserves has increased. 
The above table does not include any reserves attributable to Burren’s 26% interest of HOEC. As at 31 March 2005, according to HOEC management
estimates, HOEC proven and probable reserves were 34.0 million barrels of oil equivalent (“boe”) on an entitlement basis and 40.0 million boe on a working
interest basis. 24 BURREN ENERGY PLC ANNUAL REPORT AND ACCOUNTS 2004  BURREN ENERGY PLC ANNUAL REPORT AND ACCOUNTS 2004 25
The Directors present their annual report and the audited ﬁnancial statements for the year ended 31 December 2004.
Results and dividends
The Group proﬁt for the year, after taxation and minority interests, amounted to £38,809,000 (2003: £15,753,000).
The Directors recommend a ﬁnal dividend of 3 pence per ordinary share (2003: £nil).
Business review and future developments
The principal activities of the Company and its subsidiary undertakings (“the Group”) are oil and gas exploration and production and the transportation 
of crude oil. Information on the Company’s principal subsidiary undertakings is contained in note 14 to the ﬁnancial statements.
A full review of the Group’s activities during the year, recent events and future developments is contained in the Chairman's Statement on page 2, 
the Chief Executive’s Review on pages 6 and 7, the Review of Operations on pages 8 to 13 and the Financial Review on pages 14 and 15.
Directors and their interests
The names of the present Directors and their biographical details are given on page 16 and 17. Andreas Dossenbach died on 6 January 2004 and was
replaced by Pierre Lasry on 17 February 2004. Keith Henry was appointed on 31 March 2005 .
The interests of Directors who held ofﬁce at 31 December 2004 in the share capital of the Company (all of which are beneﬁcial unless otherwise stated),
together with changes from 1 January 2005 to 31 March 2005, were as follows:
directors’ report
1 January 2004 or subsequent At 31 December 2004 At 31 March 2005
date of appointment
Number of Ordinary Number of Ordinary Number of Ordinary
ordinary shares under ordinary shares under ordinary shares under
shares option
(1)
shares option
(1)
shares option
(1)
Alan Cole 25,000 – 25,000 – 25,000 –
Andreas Dossenbach
(2)
23,595,000
(6)
–––––
Andrei Pannikov 10,135,209
(7)
832,738
(7)
9,904,441
(7)
832,738
(7)
10,737,179
(7)
–
Andrew Rose 147,564 792,313 123,752 814,707 123,752 870,438
Atul Gupta 341,045 1,035,313 187,510 1,065,172 187,510 1,129,203
Brian Lavers – 500,000 – 500,000 – 500,000
Finian O’Sullivan 5,902,411
(4)
1,366,197
(5)
6,049,142
(4)
1,099,703
(5)
6,049,142
(4)
1,158,398
(5)
Michael Calvey – – – – – –
Pierre Lasry
(3)
23,595,000 – 23,595,000
(6)
– 15,595,000
(6)
–
Keith Henry
(8)
––––––
(1)
The options included in this column are options granted under the Executive Share Option Scheme, the 2001 and 2003 Long Term Incentive Plans, under the
Performance Share Plan and under a stand-alone option arrangement similar to the PSP , and the options of Balor Holdings Limited (“Balor”) and Sunﬂoat Shipping
Limited (“Sunﬂoat”) granted outside the Executive Share Option Scheme. Further details of these arrangements are provided in the Remuneration Report.
(2)
Died 6 January 2004.
(3)
Appointed 17 February 2004.
(4)
The registered holder of 5,897,161 shares is Balor in which Finian O’Sullivan holds a controlling beneﬁcial interest (1 January 2004: 5,897,161).
(5)
The registered holder of 409,002 of these options is Balor in which Finian O’Sullivan holds a controlling beneﬁcial interest.
(6)
The registered holder of these shares is Tacoma E&P Limited, a subsidiary of Tacoma Petroleum Holding Limited (“Tacoma”). Pierre Lasry is a beneﬁciary of a trust 
that together with the estate of Andreas Dossenbach controls Tacoma.
(7)
The registered holder of these shares and options is Sunﬂoat of which Andrei Pannikov is the sole shareholder.
(8)
Appointed 31 March 2005. Directors’ transactions
Pierre Lasry and the estate of Andreas Dossenbach are beneﬁciaries of a
trust that, through Tacoma Petroleum Holding Limited, controls Tacoma
E&P Limited (“TEPL”) and Castlehawk Consultants Limited (“Castlehawk”).
As such, these Directors had an interest in the following material, or
potentially material, transactions with the Group:
 A carry agreement entered into in May 2003 giving Castlehawk the
right to an interest of 10% in any participating interest obtained by, or
identiﬁed for acquisition by, the Group, in new Congo Government-
issued hydrocarbon exploration or development permits relating to
areas outside the Kouakouala and Kouilou PSCs and Pointe Indienne
Concession areas in the following three years. Castlehawk’s
participating interest will be funded by Burren with Burren being
entitled to recover such cost from Castlehawk’s share of revenues.
 An area of mutual interest agreement was entered into in August
2003 with TEPL in relation to Nigeria, Equatorial Guinea and the
Democratic Republic of Congo (Kinshasa) in which it was agreed
that any participating interest of the parties in such countries
obtained or identiﬁed by them before 19 August 2004 will be
divided 90% in favour of Burren and 10% in favour of TEPL upon
payment by the parties of their proportionate share of the costs
incurred in obtaining such interests.
As noted above, Finian O’Sullivan holds a controlling interest in Balor.
Accordingly, he had an interest in the acquisition by the Group of Tacoma
Resources Limited, as a result of Balor’s beneﬁcial interest in the oil and
gas interests of Castlehawk in the Congo at the time of the transactions,
as described in note 30(i).
As noted above, Andrei Pannikov is the sole shareholder of Sunﬂoat
and as such had an interest in the following material transactions with
the Group:
 The loan swap agreement between Sunﬂoat, First NIS Regional
Fund SICAF, the Company and certain of its subsidiaries as
described in note 30(ii).
 A loan agreement between Sunﬂoat and a subsidiary of the
Company entered into in August 2003, as described in note 19.
Michael Calvey has a contractual right to participate in the proﬁts of First
NIS Regional Fund, SICAF and the BVPE Fund (which holds shares in the
Company through Cavendish Nominees Limited). Accordingly, he had an
indirect beneﬁcial interest in the loan swap agreement described above
and certain other transactions with First NIS described in note 30.
Fixed assets
All changes in ﬁxed assets during the year are summarised in notes 
12 and 13.
Major interests in shares
At 31 March 2005 the Company had been notiﬁed of the following parties
who held interests in excess of 3% of the issued ordinary share capital of
the Company.
Number of % of issued
ordinary shares share capital
Tacoma E&P Limited
(1)
15,595,000 11.31
First NIS Regional Fund, SICAF 12,088,085 8.76
Sunﬂoat Shipping Limited
(2)
10,737,179 7.78
Balor Holdings Limited
(3)
5,897,161 4.28
Cavendish Nominees Limited 5,222,794 3.79
(1)
Pierre Lasry is a beneﬁciary of a trust that together with the estate of Andreas
Dossenbach controls Tacoma.
(2)
Andrei Pannikov is the sole shareholder.
(3)
Finian O’Sullivan holds a controlling beneﬁcial interest in Balor.
First NIS Regional Fund, SICAF, the BVPE Fund (through Cavendish
Nominees Limited, whose relationship with the BVPE Fund is purely
contractual) and First NIS Restructuring Facility (together, “the Concert
Party”), hold 18,272,769 ordinary shares, representing 13.25% of 
the issued share capital of the Company. The members of the Concert
Party are all managed independently by Baring Vostok Capital Partners
(“BVCP”). There are no voting arrangements in place between the
members of the Concert Party with respect to their shares in the
Company. However, a parallel investment agreement requires the Concert
Party to invest and divest their shares in the Company in parallel. Michael
Calvey is Managing Director of BVCP which acts as investment manager
and investment adviser to the Funds.
Creditor payment policy and practice
It is the Company’s policy that payments to suppliers are made in
accordance with those terms and conditions agreed between the
Company and its suppliers, provided that all trading terms and conditions
have been complied with.
At 31 December 2004, the Group had an average of 44 days’ purchases
outstanding in trade creditors (2003: 42 days).
Charitable donations
During the year, charitable contributions of the Company were £6,058
(2003: £3,000).
Corporate governance
Statements by the Directors in relation to Corporate Governance are 
set out on pages 27 to 29. The Remuneration Report is set out on pages
30 to 33.
Auditors
The Auditors for the year ended 31 December 2004 were Deloitte &
Touche LLP . Deloitte & Touche LLP have expressed their willingness to
continue in ofﬁce as auditors and a resolution to reappoint them will be
proposed at the forthcoming Annual General Meeting.
Approved by the Board of Directors and signed on behalf of the Board 
on 4 April 2005 by:
Hywel John
Company Secretary
4 April 2005
directors’ report continued
26 BURREN ENERGY PLC ANNUAL REPORT AND ACCOUNTS 2004 Application of Combined Code principles
The Directors are committed to maintaining high standards of corporate
Governance and this statement describes how the principles of Good
Governance set out in Section 1 of the Revised Combined Code 
(“the FRC Code”) issued in July 2003 are applied.
The Board of Directors
During 2004 the Board comprised the Chairman, three Executive Directors
and four Non-Executive Directors, of which one, Alan Cole, is considered
independent under the terms of the FRC Code published in July 2003. 
All of the Directors bring informed judgement to bear on issues of strategy,
performance, resources, key appointments and standards and there is 
a clear division of responsibilities between the Chairman and the Chief
Executive Ofﬁcer. Brief biographical details in respect of the Directors 
are included on pages 16 and 17.
The Board meets regularly, but no less than six times throughout the year
and all the necessary information is supplied to the Directors on a timely
basis to enable them to discharge their duties effectively. The Directors
have access to independent professional advice, at the Group’s expense,
if and when required. There is a formal schedule of matters reserved 
for consideration by the Board, which include the Group’s strategy,
expenditure commitments, investments and disposals, borrowing 
and hedging policy. 
A performance evaluation of the Board and its individual Directors and
ofﬁcers was undertaken in 2004. The process was led by the Chairman
and based around questionnaires circulated to and completed by the
Board. The Chairman collected responses and reported to the Board on
the results of the exercise. The performance evaluation of the Chairman
was co-ordinated by the independent Non-Executive Director, Alan Cole.
The Memorandum and Articles of Association require that at least one
third of the Board must go forward for reappointment at the Annual
General Meeting (AGM) each year, together with all new Directors
appointed since the previous AGM. Accordingly, no Director will serve 
a term of ofﬁce in excess of three years. The Directors who are due to 
go forward for reappointment in the forthcoming AGM are Alan Cole,
Andrei Pannikov and Atul Gupta.
The Board has appointed the following subcommittees:
Audit Committee
This Committee, which comprises Alan Cole (Chairman), Brian Lavers 
and Michael Calvey, reviews the annual ﬁnancial statements, internal
control matters and the scope and effectiveness of external audit.
Representatives of senior management and the external auditors 
normally attend meetings though such attendance is at the invitation
of the Committee. The external auditors have unrestricted access to the
Chairman of the Audit Committee. In addition, the Committee reviews the
necessity for the establishment of an internal audit function but currently
considers that, given the extent of the operations of the Group and the
direct involvement of senior management in control activities, there is 
no requirement for such a function.
The Audit Committee is responsible for ensuring that auditor objectivity
and independence is maintained, and Audit Committee approval is
required to engage the external auditors in a non-audit capacity.
Remuneration Committee
The members of the Committee are Brian Lavers (Chairman), Alan Cole
and Michael Calvey and it determines the Group’s Executive Directors’
remuneration. Non-Executive Directors’ fees are considered and agreed 
by the Board. Further details of the Company’s policies on remuneration
are given in the Remuneration Committee’s report on pages 30 to 33.
Nominations Committee
The members of the Committee are Brian Lavers (Chairman), Alan Cole
and Michael Calvey. The Nominations Committee is responsible for making
recommendations to the Board in relation to the structure and composition
of the Board. Any proposed changes are discussed with other Board
members and major shareholders. In relation to new appointments, these
groups are invited to suggest potential candidates. The Nominations
Committee will recommend its preferred candidate to the Board.
Internal controls
The Directors acknowledge their responsibility for the systems of 
internal control for the Group and the Company and for reviewing 
their effectiveness.
The Group’s internal control procedures include formal consideration 
of delegations of authorities to executive management by the Board. 
Such delegations are reviewed by the Board at least annually and
approved together with the annual budget. A Risk Committee comprising
the Chief Financial Ofﬁcer, Chief Operating Ofﬁcer and the Company
Secretary is charged with the identiﬁcation, monitoring and management
of risk generally and is required to review and formally approve all material
contracts. These processes are complemented by effective monitoring
and approval at each stage in the cycle of transactions and by a regular
detailed reporting system.
The Directors consider that the frequency of Board meetings and level 
of detail presented to the Board for its consideration in relation to the
operations of the Group provide an appropriate process to identify,
evaluate and manage signiﬁcant risks relevant to its operations on a
continuous basis, and this process is considered to be in accordance
with Internal Control Guidance for Directors in the FRC Code.
Any system of internal control can only provide reasonable, and not
absolute, assurance that material ﬁnancial irregularities will be detected
or that the risk of failure to achieve business objectives is eliminated. 
The Directors, having reviewed the effectiveness of the system of internal
ﬁnancial, operational and compliance controls and risk management
during the year, consider that the system of internal control operated
appropriately throughout the ﬁnancial year and up to the date that the
ﬁnancial statements were signed.
Communication with shareholders
Burren Energy attaches great importance to shareholder communication
and intends to maintain a regular dialogue with institutional shareholders,
including presentations following announcements of year-end and interim
results. Burren has a website which contains a range of corporate
information. All shareholders are invited to the Annual General Meeting.
During 2004 all major shareholders had direct representation on the
Board. Accordingly the requirement for a detailed external communications
strategy was somewhat lessened. As the shareholder proﬁle of the
Company change greater emphasis will be placed on assuring effective
communication to reﬂect the growing signiﬁcance of other shareholders.
BURREN ENERGY PLC ANNUAL REPORT AND ACCOUNTS 2004 27
corporate governance 28 BURREN ENERGY PLC ANNUAL REPORT AND ACCOUNTS 2004
Compliance with FRC Code provisions
The Company is regarded as a smaller company in relation to the
application of the principles of the FRC Code during the year ended 
31 December 2004. The Directors consider that Burren Energy Plc 
has complied, throughout the year ended 31 December 2004, with
Section 1 of the provisions of the FRC Code except for the matters
referred to below: 
A. Directors
 The division of responsibilities between the Chairman and Chief
Executive has not been set out in writing and considered formally
by the Board (Code provision A.2.1).
 Only one independent Non-Executive Director served on 
the Board during 2004 (Code provision A.3.2). A second
independent Non-Executive Director, Keith Henry, was
appointed to the Board on 31 March 2005.
 The Board has not formally designated a senior independent
director. It was considered unnecessary to do so given that only
one Director was regarded as independent during 2004 (Code
provision A.3.3). The matter will be reconsidered in 2005.
 The terms of reference of the Nominations Committee were not
publicly available during 2004 (Code provision A.4.1). These are 
to be made available  shortly on the Company’s website.
 Pierre Lasry was appointed to the Board on 11 February 2004
following the death of his business partner, Andreas Dossenbach,
who was serving as a Director at the time. Messrs Lasry and
Dossenbach were interested in 23,595,000 ordinary shares 
in Burren representing 22% of its issued share capital. Due 
to the nature and circumstances of the appointment, the
Nomination Committee did not prepare a description of the role
and capabilities sought (Code provision A.4.2). Neither was it
considered necessary or appropriate to make use of external
search consultants or open advertising (Code provision A.4.6).
 The terms and conditions of appointment of Non-Executive
Directors were not publicly available during 2004 (Code
provision A.4.4). These are to be made available shortly 
on the Company’s website.
 There was no formal conﬁrmation to shareholders as to the
effectiveness of performance and commitment to the role 
of Director exhibited by Michael Calvey and Brian Lavers 
in connection with the resolutions presented at the Annual
General Meeting in May 2004 to re-elect them as directors
(Code provision A.7.2).
 The Nominations Committee did not include at least two
independent Non-Executive Directors during 2004 
(Code provision B.2.1).
B. Remuneration
 The Remuneration Committee did not include at least two
independent Non-Executive Directors during 2004 (Code provision
B.2.1). A second independent Non-Executive Director, Keith Henry,
was appointed to the Committee on 31 March 2005.
 The terms of reference of the Remuneration Committee were not
made publicly available during 2004 (Code provision B.2.1). These
are to be made available shortly on the Company’s website.
C. Accountability and audit
 The Audit Committee did not include at least two independent 
Non-Executive Directors during 2004 and the Committee was not
comprised solely of independent Non-Executive Directors (Code
provision C.3.1). A second independent Non-Executive Director,
Keith Henry, was appointed to the Committee on 31 March 2005.
 The terms of reference of the Audit Committee were not made
publicly available during 2004 (Code provision C.3.3). These are 
to be made available shortly on the Company’s website.
 No formal arrangements existed during 2004 whereby staff of 
the Company may, in conﬁdence, raise concerns about possible
improprieties in matters of ﬁnancial reporting or other matters. The
Audit Committee has requested that management put appropriate
arrangements in place during 2005 (Code provision C.3.4).
corporate governance continued Attendance records
Attendance records for meetings of the main Board, and meetings of Audit, Remuneration and Nomination Committees are set out below: 
 Board
21 Jan 10 Feb 31 Mar 28 Apr 22 Jun 7 Jul 22 Jul 15 Sep 1 Dec
Michael Calvey ✓✓✓✓ ✓✓✓✓
Andrew Rose ✓✓✓✓ ✓✓✓✓
Brian Lavers ✓✓✓✓✓✓✓✓✓
Pierre Lasry ✓✓✓✓✓ ✓ Andrei Pannikov✓✓✓ ✓✓✓ Atul Gupta✓✓✓✓ ✓✓✓✓
Alan Cole✓✓✓✓ ✓✓✓✓
Finian O’Sullivan✓✓✓✓ ✓✓✓✓
 Audit Committee
24 Mar 9 Sep 25 Nov
Michael Calvey ✓✓
Brian Lavers ✓✓✓
Alan Cole ✓✓✓
 Nominations Committee
31 Mar 15 Sep
Brian Lavers ✓✓
Alan Cole ✓✓
Michael Calvey ✓✓
 Remuneration Committee
31 Mar 25 Nov
Brian Lavers ✓✓
Alan Cole ✓✓
Michael Calvey ✓ Going concern basis
After making enquiries, the Directors have formed a judgement, at the time of approving the ﬁnancial statements, that there is a reasonable expectation that
the Group has adequate resources to continue in operational existence for the foreseeable future. For this reason the Directors continue to adopt the going
concern basis in preparing the accounts.
BURREN ENERGY PLC ANNUAL REPORT AND ACCOUNTS 2004 29 Introduction
This report has been prepared in accordance with the Directors’
Remuneration Report Regulations 2002.
The Regulations require the auditors to report to the Company’s members
on the “auditable part” of the Directors’ remuneration report and to state
whether in their opinion that part of the report has been properly prepared.
The report has therefore been divided into separate sections for audited
and unaudited information.
The report has been prepared by the Remuneration Committee and 
has been approved by the Board for submission to shareholders.
Unaudited information
Remuneration Committee
The Remuneration Committee is comprised solely of Non-Executive
Directors. The members of the Remuneration Committee are Brian Lavers
(Chairman), Alan Cole and Michael Calvey. The Chief Executive Ofﬁcer is
not a member of the Remuneration Committee but may attend its meetings
by invitation and is consulted in respect of its proposals.
The Remuneration Committee is responsible for making recommendations
to the Board, within agreed terms of reference, regarding the framework
and broad policy for remuneration matters. None of the members of the
Remuneration Committee has any personal ﬁnancial interest (other than 
as shareholders), conﬂicts of interests arising from cross-directorships 
or day-to-day involvement in running the business. The Remuneration
Committee makes recommendations to the Board. No Director plays 
a part in any discussion about his own remuneration.
The Remuneration Committee appointed New Bridge Street Consultants
to provide advice prior to the Flotation of the Company in December 2003.
The advice focused, in particular, on share incentive schemes to be
implemented at that time. New Bridge Street consultants did not provide
any other services to the Group.
Remuneration policy
The Group’s policy is to maintain levels of remuneration sufﬁcient to
attract, motivate and retain Directors of the highest calibre who can deliver
growth in shareholder value. Executive remuneration currently consists of
basic salary, beneﬁts and performance related incentive schemes. 
Basic salary and benefits
The Remuneration Committee reviews basic salary annually, taking into
account any changes in responsibilities and competitive market practices.
Beneﬁts available to executive management comprise the funding of
private health insurance, personal life insurance premia and death in
service beneﬁt.
New incentive schemes
The Company adopted four new schemes on Flotation in December 2003:
the Annual Proﬁt Sharing Scheme; the Performance Share Plan; the Capital
Enhancement Plan; and the Share Incentive Plan (together, “the New
Incentive Schemes”). 
The key features of each of the New Incentive Schemes are set out below:
Annual Profit Sharing Scheme (“the APS Scheme”)
(a) Under the APS Scheme, the Company will pay 5% of the Group’s
operating proﬁt on ordinary activities (after interest, ﬁnancing charges,
taxation and the payment of this sum, but before the deduction of any
exceptional items as disclosed in the Company’s accounts) to its
employees as an annual bonus. The level of bonuses will be
determined by reference to the annual audited results of the 
Group. The Remuneration Committee has determined that 
amounts expensed in relation to the Long Term Incentive Plan, the
Performance Share Plan and Executive Share Option Scheme 1998
are not deemed exceptional for the purposes of calculating bonuses.
(b) The Remuneration Committee shall determine individual bonus
entitlement for the Executive Directors and other senior executives.
By 2006, the Remuneration Committee has committed to review 
the APS Scheme’s future operation.
(c) In the event of any future acquisition by the Company funded by
the issue of shares, the 5% bonus pool will be reduced proportionally
by reference to the number of shares issued.
(d) Any amounts payable in excess of 50 per cent of annual base
salary will be made as a right to acquire shares in the Company,
the exercise of which will be deferred for a period of three years
(a “Deferred APS Award”). No payment will be required upon
exercise of any Deferred APS Award.
(e) The number of shares in the Company subject to a Deferred APS
Award will normally be calculated using the Company’s average share
price over the last 30 days of the ﬁnancial year to which the Deferred
APS Award relates.
(f) A Deferred APS Award will normally be able to be exercised in the 
six months commencing from the third anniversary of the end of the
ﬁnancial year to which the deferred bonus relates.
(g) Upon leaving the Group by reason of resignation or dismissal for
cause then any Deferred APS Award will lapse. For all other leavers,
unless the Remuneration Committee determines otherwise, awards
will vest on a time-apportioned basis by reference to the actual period
of employment. A change in control of the Company, but not an
internal reorganisation, will also trigger the right to exercise Deferred
APS Awards early.
Performance Share Plan (“the PSP”)
(a) An award comprises an option to acquire shares in the Company 
for nil payment.
(b) Prior to and conditional upon Flotation, one set of awards 
was made under the PSP on 12 November 2003 in respect of 
an aggregate of 481,922 ordinary shares. The Company’s current
policy is that other than those original awards, which were made to
members of the executive management team (including certain non
Directors) at Flotation, no further awards will be granted under the
PSP . In any event, should the Remuneration Committee decide to
change that policy, no awards may be granted after 31 March 2013
under the PSP .
(c) Awards vest on the third anniversary of grant to the extent that the
applicable performance condition has been satisﬁed and provided
that the participant is still employed by a Group company. It will
remain capable of exercise for a period of six months.
(d) An award will lapse upon the participant’s resignation or dismissal
for cause. For all other leavers, awards can be retained to the extent
that the performance condition is met at the time of cessation of
employment and will vest as described above. However, unless the
Remuneration Committee determines otherwise, awards will vest
on a time-apportioned basis by reference to the actual period
of employment.
(e) In the event of a takeover, scheme of arrangement or winding 
up of the Company an award will vest early to the extent that 
the performance condition has been satisﬁed.
30 BURREN ENERGY PLC ANNUAL REPORT AND ACCOUNTS 2004
remuneration report (f) For the pre-Flotation grants referred to above, performance
conditions comprise the following share price target based on
growth from the placing price:
Percentage of
share price growth Award that vests
Less than 20% 0%
20% or greater but less than 40% 20%
40% or greater but less than 60% 40%
60% or greater but less than 80% 60%
80% or greater but less than 100% 80%
100% or greater 100%
(g) For an award to vest, the share price of an ordinary share must meet
this target for a period of 20 or more consecutive dealing days during
the three-year period commencing on the date of Admission.
During the year ended 31 December 2004, the share price growth
targets shown in (f) above, were met in full.
Capital Enhancement Plan (“the CEP”)
General
The CEP is a long-term incentive plan under which cash payments may
be made to a selected group of senior executives following a strategic sale
or return of capital to shareholders. It provides no entitlement to shares in
the Company. The rationale for the CEP is that if signiﬁcant shareholder
return can be delivered through a sale of the Company, management
should be encouraged to proceed with such a sale even though it may 
not be in their personal longer-term interests.
Eligibility
The Remuneration Committee, following consultation with the Chief
Executive Ofﬁcer from time to time, will select participants in the CEP 
and, subject to the total limit described below, will decide the quantum 
of these individual payments.
Payment
(a) Participants in the CEP will receive payment in the event of a sale of
the Company to a genuine third party provided that the annual rate 
of return for shareholders from the Placing Price is at least 10% per
annum. The total value of the amounts payable under the CEP will 
be of a value equal to a percentage of the Company’s value as
determined by the total sale consideration calculated as follows:
Relevant percentage of sale
consideration payable under the CEP
Annual rate of return for shareholders
Less than 10% 0%
10% or greater but less than 20% 0.5%
20% or greater but less than 30% 1.0%
30% or greater 1.5%
(b) Alternatively, if capital is returned to shareholders via the payment of a
special dividend or share re-purchase, in whatever form, for example,
following the sale of a subsidiary or a Group business, an amount
equal to 1% of the total special dividend will become payable. The
Board will be responsible for determining whether a return of capital
constitutes a special dividend for these purposes.
Share Incentive Plan (“the SIP”)
For UK employees, including Executive Directors, the Company has the
facility to operate a tax favoured share plan under which shares can be
allocated to individuals annually up to a value of 10% of salary, subject 
to a cap of £3,000. Such shares are held in trust for the individual for a
minimum of three years and if held for ﬁve years no income tax is payable.
Dilution
The rules of the APS Scheme and the PSP permit awards to be over 
new issue shares, shares purchased in the market or treasury stock. 
The number of new shares that may be issued by the Company in the 
10 years following Admission to satisfy awards granted after Admission
under the New Incentive Schemes and any other future employee share
scheme operated by the Company will be restricted to 10% of the issued
share capital of the Company from time to time. The number of new
shares that may be issued in the same period under the New Incentive
Schemes other than the SIP and any other all-employee share scheme
operated by the Company in respect of awards granted after Admission
will be restricted to 5% of the issued share capital of the Company from
time to time.
Incentive schemes prior to flotation
The incentive schemes existing prior to ﬂotation have been discontinued
and no further awards will be made under these schemes. The schemes
and their key features are set out below:
Executive Share Option Scheme 1998
All options became exercisable following the ﬂotation and expire after
seven years from the date of grant.
Long T erm Incentive Plan 1998
Under the terms of the Long Term Incentive Plan, Executive Directors 
and other senior managers received awards of ordinary shares in the 
form of nil priced options. Awards vest two years after the end of the initial
performance year. Subsisting awards under the Long Term Incentive Plan
have now vested according to the relevant performance conditions.
Pensions
The Company meets its statutory obligations by providing all personnel
with access to stakeholder pension arrangements. The policy of the
Company is not to make any contributions and to permit individuals 
to be responsible for their own pensions.
Service contracts
The Company’s policy is for all Executive Directors to have permanent
contracts of service that can be terminated by either the Director or the
Company upon 12 months’ notice. Under these contracts compensation
on termination may be negotiated individually but will not exceed 12
months’ remuneration Base salary plus a sum representing beneﬁts and
any bonuses which may be applicable. The independent Non-Executive
Directors and the Chairman have letters of appointment that can be
terminated by either the Director or the Company upon one month’s notice.
There is no legally binding commitment as to the terms of ofﬁce though any
appointment or reappointment would be subject to the Company’s Articles
of Association that provide for retirement by rotation at least every three
years. The letters of appointment applicable to the other Non-Executive
Directors can be terminated with immediate effect, appointment or
reappointment being subject to the Company’s Articles of Association.
Effective Unexpired Notice 
date term period
Executive service contracts
Atul Gupta 5.12.03 n/a 12 months
Finian O’Sullivan 5.12.03 n/a 12 months
Andrew Rose 5.12.03 n/a 12 months
Independent non-executive letters of appointment
Alan Cole 2.10.03 n/a 1 month
Keith Henry 31.03.05 n/a 1 month
Other non-executive letters of appointment
Brian Lavers 1.10.03 n/a 1 month
Michael Calvey 7.11.03 n/a None
Pierre Lasry 10.2.04 n/a None
Andrei Pannikov 7.11.03 n/a None
BURREN ENERGY PLC ANNUAL REPORT AND ACCOUNTS 2004 31 The remuneration of the independent Non-Executive Directors and the Chairman takes the form solely of fees, which were set by the Board having taken
advice from New Bridge Street Consultants.
No fees are payable to other Non-Executive Directors.
Share price performance graph
The FTSE 250 Index was selected as an appropriate comparator for the performance graphs shown below as it represents a broad equity market 
index in which Burren is a member. The performance graphs set out Burren’s monthly and cumulative total shareholder return (TSR) since ﬂotation 
on 11 December 2003.
Audited information
Directors’ remuneration
The remuneration of the Directors for the year ended 31 December 2004 was as follows:
2004 2003
£’000 £’000
Emoluments 1,611 1,064
Gains on exercise of options 454 510
Total 2,065 1,574
Directors’ emoluments
Bonus
Bonus Deferred 2004 2003
Salary/fees cash
(4)
shares
(4)
Beneﬁts Total Total
£’000 £’000 £’000 £’000 £’000 £’000
Executive Directors
Finian O’Sullivan 205 103 247 2 557 317
Atul Gupta 160 80 270 3 513 279
Andrew Rose 150 75 235 3 463 256
Brian Thurley
(1)
–––– – 164
515 258 752 8 1,533 1,016
Non-Executive Directors
Brian Lavers 50 – – – 50 31
Alan Cole
(2)
28 ––– 28 7
Roland Shaw
(3)
–––– – 10
78 ––– 78 48
Total 593 258 752 8 1,611 1,064
(1)
Resigned 12 September 2003.
(2)
Appointed 2 October 2003.
(3)
Resigned 8 September 2003.
(4)
Represents amounts awarded on 31 March 2005 under the terms of the APS Scheme referred to above.
32 BURREN ENERGY PLC ANNUAL REPORT AND ACCOUNTS 2004
remuneration report continued
350
300
250
200
150
100
Total shareholder return – cumulative
Percentage
Percentage
Dec
03
Jan
04
Feb
04
Mar
04
May
04
Jun
04
Jul
04
Aug
04
Apr
04
Sep
04
Nov
04
Dec
04
Oct
04
Burren FTSE 250
30
25
20
15
10
5
0
–5
–10
Total shareholder return – monthly
Dec
03
Jan
04
Feb
04
Mar
04
May
04
Jun
04
Jul
04
Aug
04
Apr
04
Sep
04
Nov
04
Dec
04
Oct
04
Burren FTSE 250 BURREN ENERGY PLC ANNUAL REPORT AND ACCOUNTS 2004 33
Directors’ share options
The interests of the Directors in the schemes described above are as follows:
As at Granted As at Date from
1 January awarded/ 31 December Exercise which Expiry
2004 (exercised) 2004 price exercisable date
Brian Lavers
Executive Share Option Scheme 300,000 – 300,000 US$1.20 27 Jan 2002 27 Jan 2006
200,000 – 200,000 US$0.60 29 Mar 2003 29 Mar 2007
Finian O’Sullivan
Executive Share Option Scheme 200,000 – 200,000 US$0.60 29 Mar 2003 29 Mar 2007
100,000 – 100,000 US$1.20 11 Dec 2003 29 Mar 2008
100,000 – 100,000 US$1.20 11 Dec 2003 12 Apr 2009
LTIP 2001 280,266 (280,266)
(1)
– £0.20 29 Mar 2003 29 Mar 2004
LTIP 2003 276,929 – 276,929 – 13 Mar 2005 13 Mar 2006
Andrew Rose
Executive Share Option Scheme 250,000 – 250,000 US$1.20 11 Dec 2003 24 May 2008
150,000 – 150,000 US$1.20 11 Dec 2003 12 Apr 2009
LTIP 2003 276,929 – 276,929 – 13 Mar 2005 13 Mar 2006
Performance Share Plan 115,384 – 115,384 – 12 Nov 2006 12 May 2007
Atul Gupta
Executive Share Option Scheme 235,308 – 235,308 US$0.80 27 Jan 2002 27 Jan 2006
200,000 – 200,000 US$0.60 29 Mar 2003 29 Mar 2007
100,000 – 100,000 US$1.20 11 Dec 2003 29 Mar 2008
100,000 – 100,000 US$1.20 11 Dec 2003 12 Apr 2009
LTIP 2003 276,929 – 276,929 – 13 Mar 2005 13 Mar 2006
Options awarded following ﬂotation 123,076 – 123,076 – 12 Nov 2003 12 May 2010
(1)
The market price at the date of exercise (5 February 2004) was £1.82, resulting in a gain on exercise of £454,000.
Throughout 2004, no options held by any of the Company’s Directors lapsed.
The market price of the ordinary shares at 31 December 2004 was £4.63, and the range during the year was £1.34 to £4.83.
In addition to the above, Finian O’Sullivan holds a controlling interest in Balor Holdings Limited, which is the registered holder of 409,002 options and
Andrei Pannikov is the sole shareholder of Sunﬂoat Shipping Limited, which is the registered holder of 9,904,441 ordinary shares and 832,738 options.
Sunﬂoat exercised the 832,738 options on 5 January 2005. Otherwise, no options were granted, exercised or lapsed during the year or prior to the date
of this report, in relation to those interests.
Approval
This report was approved by the Board of Directors on 4 April 2005 and signed on its behalf by:
Brian Lavers
Chairman of the Remuneration Committee
4 April 2005 United Kingdom company law requires the Directors to prepare ﬁnancial
statements for each ﬁnancial year which give a true and fair view of the
state of affairs of the Company and of the Group as at the end of the
ﬁnancial year, and of the proﬁt or loss of the Group for that period.
In preparing those ﬁnancial statements, the Directors are required to:
 select suitable accounting policies and then apply them consistently;
 make judgements and estimates that are reasonable and 
prudent; and
 state whether applicable accounting standards have been followed,
subject to any material departures disclosed and explained in the
ﬁnancial statements.
The Directors are responsible for keeping proper accounting records 
which disclose with reasonable accuracy at any time the ﬁnancial 
position of the Company and of the Group and enable them to 
ensure that the ﬁnancial statements comply with the Companies Act 
1985. They are also responsible for the system of internal control, for
safeguarding the assets of the Company and the Group, and hence for
taking reasonable steps for the prevention and detection of fraud and
other irregularities.
statement of directors’ responsibilities
34 BURREN ENERGY PLC ANNUAL REPORT AND ACCOUNTS 2004 We have audited the ﬁnancial statements of Burren Energy plc for the year
ended 31 December 2004 which comprise the consolidated proﬁt and loss
account, the note of historical cost proﬁts and losses, the consolidated
statement of total recognised gains and losses, the balance sheets, the
consolidated cash ﬂow statement and the related notes 1 to 33. These
ﬁnancial statements have been prepared under the accounting policies 
set out therein. We have also audited the information in the part of the
Directors’ remuneration report that is described as having been audited.
This report is made solely to the Company’s members, as a body, in
accordance with section 235 of the Companies Act 1985. Our audit work
has been undertaken so that we might state to the Company’s members
those matters we are required to state to them in an auditors’ report and
for no other purpose. To the fullest extent permitted by law, we do not
accept or assume responsibility to anyone other than the Company and
the Company’s members as a body, for our audit work, for this report, 
or for the opinions we have formed.
Respective responsibilities of Directors and auditors
As described in the statement of Directors’ responsibilities, the Company’s
Directors are responsible for the preparation of the ﬁnancial statements 
in accordance with applicable United Kingdom law and accounting
standards. They are also responsible for the preparation of the other
information contained in the Annual Report including the Directors’
remuneration report. Our responsibility is to audit the ﬁnancial statements
and the part of the Directors’ remuneration report described as having
been audited in accordance with relevant United Kingdom legal and
regulatory requirements and auditing standards.
We report to you our opinion as to whether the ﬁnancial statements give 
a true and fair view and whether the ﬁnancial statements and the part of
the Directors’ remuneration report described as having been audited 
have been properly prepared in accordance with the Companies Act
1985. We also report to you if, in our opinion, the Directors’ report is 
not consistent with the ﬁnancial statements, if the Company has not kept
proper accounting records, if we have not received all the information and
explanations we require for our audit, or if information speciﬁed by law
regarding Directors’ remuneration and transactions with the Company
and other members of the Group is not disclosed.
We review whether the corporate governance statement reﬂects the
Company's compliance with the nine provisions of the FRC Code
speciﬁed for our review by the Listing Rules of the Financial Services
Authority, and we report if it does not. We are not required to consider
whether the Board's statements on internal control cover all risks and
controls, or form an opinion on the effectiveness of the Group's corporate
governance procedures or its risk and control procedures.
We read the Directors’ report and the other information contained in
the Annual Report for the above year as described in the contents
section including the unaudited part of the Directors’ remuneration
report and consider the implications for our report if we become aware
of any apparent misstatements or material inconsistencies with the
ﬁnancial statements.
Basis of audit opinion
We conducted our audit in accordance with United Kingdom auditing
standards issued by the Auditing Practices Board. An audit includes
examination, on a test basis, of evidence relevant to the amounts and
disclosures in the ﬁnancial statements and the part of the Directors’
remuneration report described as having been audited. It also includes
an assessment of the signiﬁcant estimates and judgements made by the
Directors in the preparation of the ﬁnancial statements and of whether
the accounting policies are appropriate to the circumstances of the
Company and the Group, consistently applied and adequately disclosed.
We planned and performed our audit so as to obtain all the information
and explanations which we considered necessary in order to provide us
with sufﬁcient evidence to give reasonable assurance that the ﬁnancial
statements and the part of the Directors’ remuneration report described 
as having been audited are free from material misstatement, whether
caused by fraud or other irregularity or error. In forming our opinion, we
also evaluated the overall adequacy of the presentation of information in
the ﬁnancial statements and the part of the Directors’ remuneration report
described as having been audited.
Opinion
In our opinion:
 the ﬁnancial statements give a true and fair view of the state of affairs
of the Company and the Group as at 31 December 2004 and of the
proﬁt of the Group for the year then ended; and
 the ﬁnancial statements and part of the Directors’ remuneration report
described as having been audited have been properly prepared in
accordance with the Companies Act 1985.
Deloitte & Touche LLP
Chartered Accountants and Registered Auditors
London
4 April 2005
BURREN ENERGY PLC ANNUAL REPORT AND ACCOUNTS 2004 35
independent auditors’ report to the members of Burren Energy plc 2004 2003
Note £’000 £’000
Turnover 2 87,102 47,054
Cost of sales (30,594) (20,372)
Gross proﬁt 56,508 26,682
Charge in respect of incentive schemes 3 (4,537) (3,435)
Other administrative expenses (2,931) (3,123)
Total administrative expenses (7,468) (6,558)
Operating proﬁt 49,040 20,124
Finance charges (net) 6 (562) (1,688)
Proﬁt on ordinary activities before taxation 7 48,478 18,436
Tax on proﬁt on ordinary activities 8 (9,669) (2,221)
Proﬁt on ordinary activities after taxation 38,809 16,215
Equity minority interests – (462)
Proﬁt for the ﬁnancial year 38,809 15,753
Dividends proposed 9 (4,113) –
Retained proﬁt for the year 23 34,696 15,753
Earnings per ordinary share
– Basic 11 28.40p 16.84p
– Diluted 11 27.07p 15.59p
All operations were continuing throughout both years presented, with no operations being acquired or discontinued.
36 BURREN ENERGY PLC ANNUAL REPORT AND ACCOUNTS 2004
consolidated profit and loss account
year ended 31 December 2004 BURREN ENERGY PLC ANNUAL REPORT AND ACCOUNTS 2004 37
2004 2003
Note £’000 £’000
Reported proﬁt on ordinary activities before taxation 48,478 18,436
Difference between an historical cost depreciation charge and the actual depreciation charge 
for the year calculated on the revalued amount 23 822 314
Historical cost proﬁt on ordinary activities before taxation 49,300 18,750
Historical cost proﬁt for the year retained, after taxation and minority interests 35,518 16,067
consolidated note of historical cost profits and losses
year ended 31 December 2004
consolidated statement of recognised gains and losses
year ended 31 December 2004
2004 2003
Note £’000 £’000
Proﬁt for the ﬁnancial year 38,809 15,753
Exchange differences on translation 23 (8,939) (9,843)
Unrealised surplus on revaluation of subsidiary – 17,834
Total gains and losses recognised relating to the period 29,870 23,744 2004 2003
Note £’000 £’000
Fixed assets
Intangible ﬁxed assets 12 1,982 818
Tangible ﬁxed assets 13 135,594 98,860
137,576 99,678
Current assets
Stocks 15 529 490
Debtors 16 19,664 7,398
Cash at bank and in hand 20,858 20,788
41,051 28,676
Creditors: amounts falling due within one year 17 (27,002) (14,783)
Net current assets 14,049 13,893
Total assets less current liabilities 151,625 113,571
Creditors: amounts falling due after more than one year 18 (2,151) (3,159)
Provisions for liabilities and charges 8 (10,057) (1,982)
Net assets 139,417 108,430
Capital and reserves
Equity share capital 22 23,706 25,028
Share premium account 23 45,623 48,746
Revaluation reserve 23 14,247 16,130
Other reserve 23 1,616 1,734
Merger reserve 23 (6,638) (7,121)
Shares to be issued 23 3,892 –
Proﬁt and loss account 23 56,971 23,913
Total equity shareholders’ funds 23, 24 139,417 108,430
These ﬁnancial statements were approved by the Board of Directors and signed on its behalf by:
Finian O’Sullivan Andrew Rose
Chief Executive Ofﬁcer Chief Financial Ofﬁcer
4 April 2005
38 BURREN ENERGY PLC ANNUAL REPORT AND ACCOUNTS 2004
consolidated balance sheet
31 December 2004 2004 2003
Note £’000 £’000
Fixed assets
Investments 14 40,146 43,041
Current assets
Debtors 16 22,251 15,246
Cash at bank and in hand 20,576 19,143
42,827 34,389
Creditors: amounts falling due within one year 17 (6,082) (5,414)
Net current assets 36,745 28,975
Total assets less current liabilities, and net assets 76,891 72,016
Capital and reserves
Equity share capital 23 23,706 25,028
Share premium account 23 45,623 48,746
Shares to be issued 23 3,892 –
Proﬁt and loss account 23 3,670 (1,758)
Total equity shareholders’ funds 23 76,891 72,016
The ﬁnancial statements were approved by the Board of Directors and signed on its behalf by:
Finian O’Sullivan Andrew Rose
Chief Executive Ofﬁcer Chief Financial Ofﬁcer
4 April 2005
BURREN ENERGY PLC ANNUAL REPORT AND ACCOUNTS 2004 39
company balance sheet
31 December 2004 2004 2003
Note £’000 £’000
Net cash inﬂow from operating activities 25 54,582 28,524
Returns on investments and servicing of ﬁnance
Interest received 321 32
Interest paid (308) (1,227)
Arrangement and facility fee 6 (282) (696)
Interest element of ﬁnance lease rentals (338) –
Net cash outﬂow from returns on investments and servicing of ﬁnance (607) (1,891)
Taxation
Overseas tax paid (71) (54)
Capital expenditure
Payments to acquire tangible ﬁxed assets (48,821) (24,688)
Payments to acquire intangible ﬁxed assets 12 (1,272) (818)
Net cash outﬂow from capital expenditure (50,093) (25,506)
Net cash inﬂow before ﬁnancing 3,811 1,073
Financing
Issue of ordinary share capital 23 590 24,041
Receipts from loans 196 7,172
Repayment of loans (2,452) (11,468)
Capital element of ﬁnance lease rental payments (2,075) –
Net cash (outﬂow)/inﬂow from ﬁnancing (3,741) 19,745
Increase in cash and cash equivalents 27 70 20,818
40 BURREN ENERGY PLC ANNUAL REPORT AND ACCOUNTS 2004
consolidated cash flow statement
year ended 31 December 2004 1. Accounting policies
The accounting policies, which have been applied consistently in the current and preceding year, are set out below:
(a)Basis of preparation
The ﬁnancial statements have been prepared under the historical cost convention, modiﬁed to include the revaluation of certain ﬁxed assets,
in accordance with applicable United Kingdom accounting standards.
(b) Oil and gas industry accounting standards
In addition to the requirements of United Kingdom accounting standards, the accounting for oil and gas exploration and production activities is guided by
the Statement of Recommended Practice (“SORP”) “Accounting for Oil and Gas Exploration, Development Production and Decommissioning Activities”,
issued by the UK Oil Industry Accounting Committee. The ﬁnancial statements have been prepared in accordance with the provisions of the SORP , with
the exception that the accounting policy adopted for oil and gas underlift is not in compliance with the SORP for the reason set out in note 1(h) below.
(c)Reporting currency
The ﬁnancial statements are presented in pounds sterling, although the Company and the majority of its subsidiaries have a US dollar functional currency.
The balance sheet at 31 December 2004, including all items of shareholders’ equity other than the proﬁt and loss reserve, has been translated at the
closing rate of $1.91589 = £1 (31 December 2003: $1.78578) and the proﬁt and loss account for the year then ended at the average rate for the year
then ended of $1.83559 = £1 (2003: $1.64415). All resulting exchange differences are recognised in the statement of total recognised gains and losses.
(d)Basis of consolidation
The ﬁnancial statements consolidate the results of the Company and all its subsidiary undertakings. The results of subsidiaries acquired or sold are
consolidated for the periods from or to the date at which control passed. Acquisitions are accounted for under the acquisition method, under which
purchase consideration is allocated to the assets and liabilities on the basis of fair value at the date of acquisition.
(e) Oil and gas properties
The Group follows the full cost method of accounting for oil and gas properties under which expenditure on pre-licence, licence acquisition, exploration,
appraisal and development activities is capitalised. All capitalised exploration and development expenditure is recorded within an appropriate cost pool
within tangible ﬁxed assets, except that certain exploration and appraisal costs may be held outside a cost pool, pending determination of commercial
reserves, within intangible ﬁxed assets. The Group has three cost pools: the Caspian Region, West Africa and North Africa. The Group’s deﬁnition of
commercial reserves is proven and probable reserves.
Pre-licence acquisition, exploration and appraisal costs of individual licence interests held outside a cost pool remain undepreciated pending
determination subject to there being no evidence of impairment. When a decision to develop an oil and gas property has been taken, or if there is
evidence of impairment in value, the costs are transferred to the appropriate cost pool within tangible ﬁxed assets.
Costs carried within each pool are depreciated on a unit of production basis using the ratio of oil and gas production in the period to the estimated
quantity of commercial reserves at the end of the period plus production in the period. Costs in the unit of production calculation include the net book
value of capitalised costs plus estimated future development costs. Changes in estimates of commercial reserves or future development costs are dealt
with prospectively.
When events or changes in circumstances indicate that the carrying amount of expenditure within a cost pool may not be recoverable from future net
revenues from oil and gas reserves attributable to that pool, a comparison between the net book value of the cost pool and the discounted future cash
ﬂows from that cost pool is undertaken. To the extent that the carrying amount exceeds the recoverable amount, the pool is written down to its
recoverable amount and charged as additional depreciation.
(f) Decommissioning
Where a material liability for the removal of production facilities and site restoration at the end of the productive life of a ﬁeld exists, a provision for
decommissioning is recognised. The amount recognised is the present value of estimated future expenditure determined in accordance with local
conditions and requirements. A tangible ﬁxed asset of an amount equivalent to the provision is also created and depreciated on a unit of production
basis. Changes in estimates are recognised prospectively, with corresponding adjustments to the provision and the associated ﬁxed asset. There were
no material decommissioning liabilities at 31 December 2003 and 2004.
(g) Other tangible fixed assets
Other tangible ﬁxed assets are stated at cost less depreciation and any provision for impairment. Depreciation is provided at rates calculated to write off
the cost, less estimated residual value, of assets on a straight-line basis over their useful lives as follows:
Plant and equipment: 4 years
Ofﬁce furniture: 4 years
Barges and tugs: 20 years
The carrying values of other tangible ﬁxed assets are reviewed for impairment when events or changes in circumstances indicate the carrying value may
not be recoverable.
(h) Oil and gas overlift and underlift
Underlifts of entitlement to crude oil production are recorded at the lower of production cost and market value, whereas overlifts are recorded at market
value. This is not in accordance with the SORP which recommends the use of market value for measuring overlift and underlift. The Group has adopted
this policy because management believes it more fairly reﬂects the Group’s results. The Group had no underlifts at 31 December 2004.
notes to the financial statements
year ended 31 December 2004
BURREN ENERGY PLC ANNUAL REPORT AND ACCOUNTS 2004 41 1. Accounting policies (continued)
(i) Stocks
Stocks are stated at the lower of cost and net realisable value. Net realisable value is based on estimated selling price, less further costs expected to be
incurred to completion and disposal. Provision is made for obsolete, slow-moving or defective items where appropriate.
(j) Debt
Debt is initially stated at the amount of the net proceeds after deduction of issue costs. The carrying amount is increased by the ﬁnance cost in respect
of the period and reduced by payments made in the period. Convertible debt is reported as a liability unless conversion actually occurs. No gain or loss
is recognised on conversion.
Finance costs of debt are recognised in the proﬁt and loss account over the term of the debt instrument at a constant rate on the carrying amount.
(k) Revenue recognition
Oil sales revenue represents amounts invoiced (exclusive of sales related taxes) for the Group’s share of oil sales in the year.
(l) Shipping repairs and renewals
Ships are dry-docked periodically and the costs are expensed as incurred. Other maintenance costs are carried out and expensed as incurred.
(m)Foreign currencies
Company
Transactions in currencies other than US dollars are recorded in US dollars at the rate of exchange ruling on the date of the transaction. Monetary assets
and liabilities denominated in currencies other than US dollars are re-translated at the rate of exchange prevailing at the balance sheet date. Gains and
losses on foreign currency translation are included in the proﬁt and loss account.
Group
The ﬁnancial statements of subsidiary undertakings that do not use US dollars as a functional currency are translated into US dollars at the rates of
exchange ruling at the balance sheet date. The exchange difference arising on the re-translation of opening net assets is taken directly to reserves. 
All other exchange differences are taken to the proﬁt and loss account for the year.
(n) Leases
Rentals payable under operating leases are charged in the proﬁt and loss account on a straight line basis over the lease term. Assets held under ﬁnance
leases are capitalised as tangible ﬁxed assets and are depreciated over their useful lives. The capital elements of future lease obligations are recorded as
liabilities, while the interest elements are charged to the proﬁt and loss account over the period of the leases to produce a constant rate of charge on the
balance of capital repayments outstanding. 
(o) T axation
Current tax, including UK corporation tax and overseas tax, is provided at amounts expected to be paid (or recovered) using the tax rates and laws that
have been enacted or substantially enacted by the balance sheet date.
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or
events have occurred at that date that will result in an obligation to pay more or a right to pay less tax, with the following exceptions:
 no provision is made for deferred tax that would arise on remittance of the retained earnings of overseas subsidiaries; and
 deferred tax assets are recognised only to the extent that it is considered more likely than not that there will be suitable taxable proﬁts from which 
the future reversal of the underlying timing differences can be deducted.
Deferred tax is measured on an undiscounted basis at the tax rates that are expected to apply in the periods in which timing differences reverse, based
on tax rates and laws enacted or substantially enacted at the balance sheet date.
(p) Derivative financial instruments
The Group uses forward crude oil sales contracts, swaps and options to reduce exposure to ﬂuctuations in the price of crude oil. Contracts are only
entered into to hedge physical positions related to the Group’s crude oil production and are, accordingly, accounted for as hedge transactions. The gain
or loss arising on these instruments is deferred and recognised only when the hedged transaction occurs. The Group does not hold or issue derivative
ﬁnancial instruments for speculative purposes.
(q)Investments
Fixed asset investments are shown at cost less provision for impairment.
(r)Revaluation reserve
In accordance with the SORP the Group records any fair value uplift on acquisition of exploration and production subsidiaries within the related ﬁxed
asset cost pool, with the related balance being transferred to a revaluation reserve. Where depreciation, depletion and amortisation charges are
increased following such a fair value uplift, an amount equal to the increase is transferred annually from the revaluation reserve to the proﬁt and loss
account as a movement on reserves.
notes to the financial statements continued
year ended 31 December 2004
42 BURREN ENERGY PLC ANNUAL REPORT AND ACCOUNTS 2004 2. Segmental analysis
Year ended 31 December 2004
Upstream Shipping Total
Analysis by activity £’000 £’000 £’000
Sales to third parties 80,559 6,543 87,102
Cost of sales (23,691) (6,903) (30,594)
Segment gross proﬁt/(loss) 56,868 (360) 56,508
Administrative expenses (612) (326) (938)
Segment operating proﬁt/(loss) 56,256 (686) 55,570
Unallocated administrative expenses (6,530)
Operating proﬁt 49,040
Finance charges (net) (562)
Proﬁt before taxation 48,478
There were no inter-segment sales. Unallocated administrative expenses relate to corporate costs that are not attributable to any speciﬁc segment.
Upstream Shipping Unallocated Total
Analysis by activity £’000 £’000 £’000 £’000
Net assets by segment: 118,791 2,652 17,974 139,417
Unallocated assets related to activities associated with the general management, ﬁnancing and administration of the operations of the Group.
Year ended 31 December 2003.
Upstream Shipping Total
Analysis by activity £’000 £’000 £’000
Sales to third parties 41,018 6,036 47,054
Cost of sales (15,381) (4,991) (20,372)
Segment gross proﬁt 25,637 1,045 26,682
Administrative expenses (1,565) (905) (2,470)
Segment operating proﬁt 24,072 140 24,212
Unallocated administrative expenses (4,088)
Operating proﬁt 20,124
Finance charges (net) (1,688)
Proﬁt before taxation 18,436
There were no inter-segment sales. Unallocated administrative expenses relate to corporate costs that are not attributable to any speciﬁc segment.
Upstream Shipping Unallocated Total
Analysis by activity £’000 £’000 £’000 £’000
Net assets/(liabilities) by segment: 96,941 (326) 11,815 108,430
Unallocated assets related to activities associated with the general management, ﬁnancing and administration of the operations of the Group.
BURREN ENERGY PLC ANNUAL REPORT AND ACCOUNTS 2004 43 2. Segmental analysis (continued)
Year ended 31 December 2004
Caspian region West Africa Total
Analysis by geographical area: £’000 £’000 £’000
Sales to third parties 58,046 29,056 87,102
Cost of sales (16,947) (13,647) (30,594)
Segment gross proﬁt 41,099 15,409 56,508
Administrative expenses (789) (149) (938)
Segment operating proﬁt 40,310 15,260 55,570
Unallocated administrative expenses (6,530)
Operating proﬁt 49,040
Finance charges (net) (562)
Proﬁt before taxation 48,478
There were no inter-segment sales. Sales to third parties by origin was not materially different to sales to third parties by destination.
Caspian region West Africa North Africa Unallocated Total
Analysis by geographical area: £’000 £’000 £’000 £’000 £’000
Net assets by segment: 48,468 67,815 5,160 17,974 139,417
The Caspian region comprises Turkmenistan and Russia. The West Africa region comprises Republic of Congo, Cameroon and Gabon. The North Africa
region comprises Egypt.
Year ended 31 December 2003.
Caspian region West Africa Total
Analysis by geographical area: £’000 £’000 £’000
Sales to third parties 38,504 8,550 47,054
Cost of sales (14,545) (5,827) (20,372)
Segment gross proﬁt 23,959 2,723 26,682
Administrative expenses (1,555) (915) (2,470)
Segment operating proﬁt 22,404 1,808 24,212
Unallocated administrative expenses (4,088)
Operating proﬁt 20,124
Finance charges (net) (1,688)
Proﬁt before taxation 18,436
There were no inter-segment sales. Sales to third parties by origin was not materially different to sales to third parties by destination.
Caspian region West Africa North Africa Unallocated Total
Analysis by geographical area: £’000 £’000 £’000 £’000 £’000
Net assets by segment: 39,306 57,090 219 11,815 108,430
The Caspian region comprises Turkmenistan and Russia. The West Africa region comprises Republic of Congo, Cameroon and Gabon. The North Africa
region comprises Egypt.
notes to the financial statements continued
year ended 31 December 2004
44 BURREN ENERGY PLC ANNUAL REPORT AND ACCOUNTS 2004 BURREN ENERGY PLC ANNUAL REPORT AND ACCOUNTS 2004 45
3. Charge in respect of incentive schemes
During both the current and prior year the company recorded signiﬁcant exceptional charges in relation to the following incentive schemes:
(i) An Annual Proﬁt Sharing Scheme (“APS Scheme”), which is calculated as 5% of the Group’s results for the year before exceptional items. In respect
of both the current and prior year the Remuneration Committee has concluded that the charges described in this note should not be treated as
exceptional for the purposes of calculating the APS Scheme charge.
(ii) A Long Term Incentive Plan (“LTIP”) by which Executive Directors and other senior managers received annual awards linked to increases in the value
of ordinary shares over a speciﬁed period. During 2003 an award was recognised in relation to the Company’s share price performance in the 30 days
following the Company’s ﬂotation in December 2003 “(the 2003 LTIP”). No further awards will be made under the LTIP arrangements.
(iii) A Performance Share Plan (“PSP”) awarded at ﬂotation, the value of which is dependent on a number of share price targets relative to the price at
ﬂotation. During the current year the share price growth targets were met in full.
In addition the terms of the LTIP and a separate Executive Share Option Scheme operated by the Company prior to ﬂotation (the “ESS”) provided that any
charges to employers’ National Insurance Contributions (“NIC”) arising on exercise of the options would be met by the Company. In accordance with UITF
25, the Company has therefore recorded a charge for the year based on the growth in Burren’s share price during the period and the applicable NIC rates.
The resultant charges can be summarised as follows:
2004 2003
£’000 £’000
APS Scheme 1,940 787
LTIP – 2,648
NIC on ESS 1,160 –
NIC on LTIP 641 –
PSP 625 –
Other 171 –
4,537 3,435
4. Staff costs
The average monthly number of employees (including Executive Directors) was as follows:
2004 2003
No. No.
Management 6 6
Upstream 770 691
Shipping 287 286
Central services 6 5
1,069 988
Their aggregate remuneration comprised:
2004 2003
£’000 £’000
Wages and salaries 9,220 7,967
Social security costs 389 219
Life insurance 3 5
9,612 8,191
The Group does not contribute to any pension arrangements for its employees.
Wages and salaries in 2004 and 2003 includes the incentive scheme charges described in note 3.
5. Directors’ remuneration, interests and transactions
Details of Directors’ remuneration for the year are provided in the Directors’ remuneration report on page 32. Details of Directors’ interests in the shares
of the Company are provided in the Directors’ report on page 25 with certain additional information in respect of their interests in share options being
provided in the Directors’ remuneration report on page 33. Details of transactions with Directors are provided in the Directors’ report on page 26. 6. Finance charges (net)
2004 2003
£’000 £’000
Bank interest receivable 370 32
Interest payable and similar charges (932) (1,720)
(562) (1,688)
Interest payable and similar charges comprises:
2004 2003
£’000 £’000
Interest on bank loans and overdrafts – 227
Bank loan facility fees 282 696
Interest on other loans 318 797
Interest element of ﬁnance leases 332 –
932 1,720
The Bank loan facility fees were payable in respect of the medium term loan facility described in note 19.
7. Profit on ordinary activities before taxation
This is stated after charging:
2004 2003
£’000 £’000
Auditors’ remuneration:
– audit services 150 154
– non audit services 65 52
Depreciation of owned tangible ﬁxed assets 16,048 7,547
Depreciation of tangible ﬁxed assets held under ﬁnance leases 85 –
Operating lease rentals:
– buildings 328 312
– plant and machinery 922 1,066
Non audit services for 2004 comprise tax advisory fees of £35,000, (2003: £52,000) and accounting advice of £30,000 (2003: £nil). In addition non audit
services of £652,000 were incurred in 2003 in relation to the Flotation and charged against the share premium account.
8. T ax on profit on ordinary activities
(i) Analysis of tax charge for the year
The tax charge is made up as follows:
2004 2003
£’000 £’000
Current tax:
UK tax 143 –
Overseas tax 958 68
Deferred tax:
Origination and reversal of timing differences 8,948 2,153
Effect of decrease in Turkmenistan tax rate on opening liability (380) –
Total tax on proﬁt on ordinary activities 9,669 2,221
notes to the financial statements continued
year ended 31 December 2004
46 BURREN ENERGY PLC ANNUAL REPORT AND ACCOUNTS 2004 8. T ax on profit on ordinary activities (continued)
(ii) Factors affecting the current tax charge for the year
The differences between the current tax charge shown above and the amount calculated by multiplying the proﬁts/losses of each overseas jurisdiction by
the relevant statutory rate are explained below:
2004 2003
£’000 £’000
Proﬁt on ordinary activities before tax 48,478 18,436
Proﬁt on ordinary activities in each jurisdiction multiplied by the relevant statutory tax rate 11,929 4,974
Effects of:
Fixed asset timing differences (4,383) (1,996)
Other timing differences 3,439 –
Permanent differences 2,755 728
Effect of current year losses 261 643
Utilisation of losses brought forward not previously recognised (7,263) (4,281)
Utilisation of foreign tax credits (5,637) –
Current tax charge for the year 1,101 68
The Group’s operations are conducted primarily outside the UK. Accordingly, the standard tax rate used above is the average rate of tax, weighted in
proportion to accounting proﬁts, applicable across the Group. During the year the statutory tax rate in Turkmenistan was reduced from 25% to 20%.
iii) Deferred taxation
Deferred tax provision £’000
At 1 January 2004 1,982
Charged to the proﬁt and loss account 8,948
Effect of decrease in Turkmenistan tax rate on opening liability (380)
Exchange adjustment (493)
At 31 December 2004 10,057
Deferred tax at 31 December 2004 is provided as follows:
The deferred tax provision at 31 December 2004 is made up solely from accelerated capital allowances. 
A deferred tax asset of £1,684,000 at 31 December 2004 in the UK (2003: £1,224,000) principally relating to ﬁxed assets and foreign tax credits, 
has not been recognised on the grounds that there is insufﬁcient evidence of suitable UK taxable proﬁts in the foreseeable future to enable the asset 
to be recovered.
A deferred tax asset of £202,000 at 31 December 2004 in Cyprus (2003: £359,000) relating to tax losses, has not been recognised on the grounds 
that there is insufﬁcient evidence of Cypriot taxable proﬁts in the foreseeable future to enable the asset to be recovered.
A deferred tax asset of approximately £484,000 in Russia, relating to tax losses has not been recognised on the grounds that there is insufﬁcient
evidence of Russian taxable proﬁts in the foreseeable future to enable the asset to be recovered.
9. Dividends proposed
2004 2003
£’000 £’000
Final proposed of 3.0 pence (2003: nil) per ordinary share 4,113 –
Subject to shareholders approval at the Annual General Meeting on 25 May 2005, the Board is recommending a maiden dividend of 3.0 pence per
share. Dividends will be paid on 8 July 2005 to shareholders on the register at close of business on 10 June 2005.
10. Profit attributable to the parent company
The proﬁt for the ﬁnancial year dealt with in the ﬁnancial statements of the parent undertaking, Burren Energy plc, £9,076,000 (2003 Loss: £2,638,000).
The Company has taken advantage of the exemption in Section 230 of the Companies Act 1985 from publication of the proﬁt and loss account in
respect of the Company.
BURREN ENERGY PLC ANNUAL REPORT AND ACCOUNTS 2004 47 11. Earnings per ordinary share
The calculation of basic and diluted earnings per ordinary share is based on the following proﬁts and numbers of shares:
2004 2003
£’000 £’000
Proﬁt:
Basic earnings per share 38,809 15,753
Interest saved on exercise of warrants – 718
Diluted earnings per share 38,809 16,471
Number Number
Weighted average number of shares:
For basic earnings per share 136,635,254 93,553,630
Convertible redeemable ordinary shares – 3,938,356
Share options 4,635,254 2,270,558
Warrants – 4,025,283
Annual Proﬁt Share Scheme 126,537 –
Long Term Incentive Plan 1,506,908 1,775,656
Performance share plan 481,922 64,696
For diluted earnings per share 143,385,875 105,628,179
The calculation of basic earnings per share is based on the proﬁt attributable to ordinary shareholders and the weighted average number of ordinary
shares in issue during the year. Diluted earnings per share is calculated by adjusting the proﬁt measure and the weighted average number of 
ordinary shares in issue on the assumption of conversion of all dilutive potential ordinary shares.
12. Intangible fixed assets
Oil and gas properties – unevaluated costs
2004
£’000
Cost and net book value:
At 1 January 2004 818
Additions 1,272
Exchange adjustment (108)
At 31 December 2004 1,982
13. T angible fixed assets
Oil and gas Oil and gas 
properties properties Other 
Caspian West Africa ﬁxed assets Total
Group £’000 £’000 £’000 £’000
Cost or valuation
At 1 January 2004 53,247 61,678 1,143 116,068
Additions 31,444 26,520 3,378 61,342
Exchange adjustments (5,173) (5,300) 153 (10,320)
At 31 December 2004 79,518 82,898 4,674 167,090
Accumulated depreciation
At 1 January 2004 14,141 2,692 375 17,208
Charge for the period 6,820 9,117 196 16,133
Exchange adjustments (1,246) (565) (34) (1,845)
At 31 December 2004 19,715 11,244 537 31,496
Net book value at 31 December 2004 59,803 71,654 4,137 135,594
Net book value at 31 December 2003 39,106 58,986 768 98,860
Included in the net book value of “other ﬁxed assets” is £3,574,000 (2003: £nil) in relation to ﬁnance leases.
notes to the financial statements continued
year ended 31 December 2004
48 BURREN ENERGY PLC ANNUAL REPORT AND ACCOUNTS 2004 13. T angible fixed assets (continued)
On an historical cost basis, “Oil and gas properties – West Africa”, would have been included as follows:
Group £’000
Cost
At 1 January 2004 45,260
At 31 December 2004 66,480
Accumulated depreciation based on cost
At 1 January 2004 2,403
At 31 December 2004 10,133
Company
Burren Energy plc held no tangible ﬁxed assets at any time during the years ending 31 December 2003 and 2004.
14. Investments
Company £’000
Cost
At 1 January 2004 43,041
Additions 22
Exchange adjustments (2,917)
At 31 December 2004 40,146
Principal Group investments
The Company and Group have investments in the following subsidiary undertakings which principally affected the results or net assets of the Group. 
All investments are in ordinary shares and are indirectly owned by the Company unless otherwise stated:
Name of company Proportion of voting shares held Nature of business Country of incorporation
Burren Energy (Bermuda) Limited 100%
(1)(2)
Holding company Bermuda
Burren Energy (Services) Limited 100%
(2)
Administrative services UK
Burren Energy Shipping and Transportation Limited (“BEST”) 100% Shipping Cyprus
Burren Resources Petroleum Limited 100% Oil and gas exploration Bermuda
and production
Burren Energy Congo Limited 100% Oil and gas exploration British Virgin Islands
and production
(1)
In addition to holding 100% of the ordinary share capital of Burren Energy (Bermuda) Limited (“BEBL”), the Company also holds one Class A redeemable preference
share of US$1.00 in BEBL and one Class B redeemable preference share of US$1.00 in BEBL, being 100% of the nominal value of both classes of shares.
(2)
Directly held by the Company.
15. Stocks
2004 2003
£’000 £’000
Materials and supplies 349 340
Crude oil 180 150
529 490
There is no material difference between the carrying value of stocks and their replacement cost.
The Company had no stock at either 31 December 2003 or 31 December 2004.
BURREN ENERGY PLC ANNUAL REPORT AND ACCOUNTS 2004 49 16. Debtors
Group Company
2004 2003 2004 2003
£’000 £’000 £’000 £’000
Trade debtors 11,286 5,746 – –
Amounts owed by Group undertakings – – 22,062 15,201
Other debtors 1,442 1,035 189 36
Prepayments and accrued income 6,936 617 – 9
19,664 7,398 22,251 15,246
Prepayments and accrued income in the Group at 31 December 2004 include an amount of £3,654,000 (2003: £nil) arising from margin calls 
related to futures contracts, together with cash collateral of £3,654,000 (2003: £nil) deposited with a ﬁnancial institution in connection with certain
exploration commitments.
17 . Creditors: amounts falling due within one year
Group Company
2004 2003 2004 2003
£’000 £’000 £’000 £’000
Trade creditors 2,948 4,985 – 7
Amounts owed to Group undertakings – – – 2,217
Corporation tax – UK 137 – – –
Corporation tax – Overseas 849 – – –
Obligations under ﬁnance leases (see note 21) 303 – – –
Other creditors 10,512 3,187 1,987 3,069
Overlift 268 1,208 – –
Dividend accrual 3,941 – 3,941 –
Accruals and deferred income 8,044 5,403 154 121
27,002 14,783 6,082 5,414
During 2004, the second threshold was reached in relation to the Nebit Dag deferred payments described in note 29. Accordingly, an amount of
£6,089,000 (2003: £3,266,000) in respect of the resulting deferred payment has been included in accruals and deferred income, and capitalised within
tangible ﬁxed assets.
18. Creditors: amounts falling due after more than one year
2004 2003
Group £’000 £’000
Loans (see note 19) 783 3,159
Obligations under ﬁnance leases (see note 21) 1,368 –
2,151 3,159
The Company had no creditors falling due after more than one year at either 31 December 2003 or 31 December 2004.
notes to the financial statements continued
year ended 31 December 2004
50 BURREN ENERGY PLC ANNUAL REPORT AND ACCOUNTS 2004 19. Borrowings
2004 2003
Group £’000 £’000
Secured loan notes – 9% 2008 – 2,520
Secured loan – 12.5% 2007 783 639
783 3,159
Less: Amounts due within one year – –
Amounts due after more than one year 783 3,159
The maturity proﬁle of borrowings is given below.
2004 2003
Group £’000 £’000
Secured loan note – 9% 2008
Amounts falling due:
In one year or less or on demand – –
Between one year and two years – 630
In more than two years but not less than ﬁve years – 1,890
– 2,520
2004 2003
Group £’000 £’000
Secured loan – 12.5% 2007
Amounts falling due:
In more than two years but not less than ﬁve years 783 639
783 639
During the year the Group fully repaid the Secured loan notes, 9% 2008, details of which are provided in note 30. The terms of the Group’s remaining
credit facilities are as follows:
Secured loan 12.5% 2007
On 24 August 2003 Burren Energy Ship Management Limited (“BESM”) entered into a loan agreement with Sunﬂoat Shipping Limited (“Sunﬂoat”)
which Sunﬂoat made available up to £783,000 (US$1,500,000) to BESM repayable in full on 1 July 2007. The Group had drawn down this in full at
31 December 2004. The annual interest rate is 12.5% and, as security for the loan, BESM has agreed to pledge to Sunﬂoat its shares in Burren Energy
Shipping and Transportation Samara Limited (see note 14). 
Medium term loan facility
On 13 October 2003 the Group entered into a facility agreement with Natexis Banques Populaires (“Natexis”) for a US dollar revolving borrowing base
loan facility of up to US$20 million for a term of three years. The amount of the facility available at 31 December 2004 was US$15.0 million. Any amounts
drawn down bear interest at LIBOR plus an applicable margin and the facility is secured via a charge over the Group’s shares in Burren Resources
Petroleum Limited, which holds the Group’s interests in Turkmenistan.  No amounts were drawn under this loan facility at the year-end.
20. Obligations under operating leases
Annual commitments under non-cancellable operating leases are as follows:
2004 2003
Land and Plant and Land and Plant and
buildings machinery buildings machinery
Group £’000 £’000 £’000 £’000
Operating leases which expire:
Within one year – 881 – 945
In over ﬁve years 302 – 302 –
302 881 302 945
There are no operating leases in the name of the Company.
BURREN ENERGY PLC ANNUAL REPORT AND ACCOUNTS 2004 51 21. Obligations under finance leases
2004 2003
Plant and Plant and
machinery machinery
Group £’000 £’000
Finance leases which expire:
Within one year 303 –
Between one and two years 388 –
Between two and ﬁve years 980 –
In over ﬁve years – –
1,671 –
The ﬁnance leases relate to tugs and barges in the shipping division. There are no ﬁnance leases in the name of the Company.
22. Share capital
2004 2003
Number Number
Authorised:
Ordinary shares of 20 pence each 300,000,000 300,000,000
300,000,000 300,000,000
£’000 £’000
Ordinary shares of 20 pence each 60,000 60,000
60,000 60,000
Number Number
Allotted, called-up and fully paid:
Ordinary shares of 20 pence each 137,099,239 135,116,288
137,099,239 135,116,288
£’000 £’000
Ordinary shares of 20 pence each 23,706 25,028
23,706 25,028
During the year the Company issued 1,982,951 20p ordinary shares in respect of share incentive schemes. An amount of £196,000 was recognised in
the share premium account as a consequence of these issues.
23. Share capital and reserves
Share Shares
Share premium Revaluation Other Merger to be Proﬁt and 
capital account reserve reserve reserve issued loss account Total
Group £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
At 1 January 2004 25,028 48,746 16,130 1,734 (7,121) – 23,913 108,430
Retained proﬁt for the year – – – – – – 34,696 34,696
Shares issued in the year 394 196 – – – – – 590
Transfer of additional depreciation 
on revalued assets – – (822) – – – 822 –
Share awards – – – – – 4,062 578 4,640
Exchange adjustments (1,716) (3,319) (1,061) (118) 483 (170) (3,038) (8,939)
At 31 December 2004 23,706 45,623 14,247 1,616 (6,638) 3,892 56,971 139,417
The merger reserve and other reserve are non-distributable reserves and arose following a Group reconstruction in March 1998. The “Shares to be
issued” reserve is non distributable and relates to the share element of various incentive scheme arrangements.
notes to the financial statements continued
year ended 31 December 2004
52 BURREN ENERGY PLC ANNUAL REPORT AND ACCOUNTS 2004 23. Share capital and reserves (continued)
Share Share Shares to Proﬁt and 
capital premium be issued loss account Total
Company £’000 £’000 £’000 £’000 £’000
As at 1 January 2004 25,028 48,746 – (1,758) 72,016
Retained proﬁt for the year – – – 4,963 4,963
Shares issued in the year 394 196 – – 590
Share awards –– 4,062 578 4,640
Exchange adjustments (1,716) (3,319) (170) (113) (5,318)
As at 31 December 2004 23,706 45,623 3,892 3,670 76,891
24. Reconciliation of movements in Group shareholders’ funds
2004 2003
£’000 £’000
Proﬁt for the ﬁnancial year 38,809 15,753
Dividends proposed (4,113) –
Shares issued during the year 590 53,612
Revaluation of subsidiary – 17,834
Share issue costs – (2,602)
Share awards 4,640 –
Exchange adjustments (8,939) (9,843)
Net additions to shareholders’ funds 30,987 74,754
Opening shareholders’ funds 108,430 33,676
Closing shareholders’ funds 139,417 108,430
25. Reconciliation of operating profit to net cash inflow from operating activities
Year ended Year ended
31 December 31 December
2004 2003
£’000 £’000
Operating proﬁt 49,040 20,124
Depreciation 16,133 7,547
Incentive schemes charge 4,537 3,435
Increase in stocks (3) (23)
Increase in debtors (13,277) (102)
Decrease in creditors (1,775) (2,457)
54,582 28,524
26. Analysis of changes in net funds
At Other At
1 January Net non-cash Exchange 31 December
2004 Cash ﬂows movements adjustments 2004
£’000 £’000 £’000 £’000 £’000
Cash at bank and in hand 20,788 70 – – 20,858
Debt due after one year (3,159) 2,452 – (76) (783)
Finance leases – 2,075 (3,819) 73 (1,671)
Net funds 17,629 4,597 (3,819) (3) 18,404
BURREN ENERGY PLC ANNUAL REPORT AND ACCOUNTS 2004 53 27 . Reconciliation of net cash flow to movements in net funds
2004 2003
£’000 £’000
Increase in cash in the year 70 20,818
Cash outﬂow from decrease in debt and lease ﬁnancing 4,527 4,296
Change in net funds resulting from cash ﬂows 4,597 25,114
New ﬁnance leases (3,819) –
Debt converted to ordinary shares – 5,682
Exchange adjustments (3) (1,335)
Other non-cash movements – (152)
Movement in net funds 775 29,309
Opening net funds/(debt) 17,629 (11,680)
Closing net funds 18,404 17,629
28. Capital commitments
Amounts contracted in relation to ongoing projects but not provided for in the ﬁnancial statements at 31 December 2004 total £9,765,000 
(2003: £4,045,000).
29. Contingent liabilities
Nebit Dag deferred purchase payments
In 2000, the Group acquired a company which held a 58.33% interest in the Nebit Dag Production Sharing Agreement concession area (“PSA”) in
Turkmenistan. Under the sale and purchase agreement deferred payments become due to the seller if the revenues from the PSA exceed certain
thresholds speciﬁed therein. As the second such threshold was reached during 2004 an amount of £6,089,000 (2003: £3,266,000) in respect of the
resulting payment has been included in accruals and deferred income. The timing of any further payment of £11,657,000 is subject to uncertainty,
principally in relation to the future production proﬁle from the PSA and the oil price. Accordingly, no provision in respect of this further bonus payment 
has been made in the ﬁnancial statements.
Congo bonus payments
Additional cash consideration will become payable to Castlehawk in connection with the acquisition of 49% of Burren Energy Congo Limited (“BECL”) 
in 2003, under the following conditions:
 $1,000,000 (£522,000) within 20 business days after the date on which the ﬁrst new exploration permit is issued to BECL and its partners within a
speciﬁed permit area in the Republic of Congo; and
 $1,000,000 (£522,000) within 20 business days after the date on which hydrocarbon production from the speciﬁed permit area ﬁrst averages 5,000
barrels per day gross during any one month.
30. Related party transactions
In addition to Directors and their connected persons, the following companies are considered to be related parties of the Group for the reasons set
out below.
Castlehawk Consultants Limited (“Castlehawk”) and Tacoma E&P Limited are subsidiaries of Tacoma Petroleum Holding Limited (“Tacoma”). Pierre Lasry,
a Director of the Company from 17 February 2004, is a beneﬁciary of a trust that, together with the estate of Andreas Dossenbach, who was a Director
of the Company until 6 January 2004, controls Tacoma.
Sunﬂoat Shipping Limited (“Sunﬂoat”) is controlled by Andrei Pannikov, a Director of the Company.
Balor Holding Limited (“Balor”) is a company in which Finian O’Sullivan, a Director of the Company, owns a beneﬁcial controlling interest.
First NIS Regional Fund, SICAF (“First NIS”), Cavendish Nominees Limited (“Cavendish”) and First NIS Restructuring Facility are deemed to represent a
Concert Party and due to their signiﬁcant combined shareholding and corresponding inﬂuence over the ﬁnancial and operating policies of the Company,
are considered to be related parties of the Company.
The transactions with related parties that have occurred during 2003 and 2004 are discussed below, as well as in note 19 and the Directors’ report 
on page 26.
notes to the financial statements continued
year ended 31 December 2004
54 BURREN ENERGY PLC ANNUAL REPORT AND ACCOUNTS 2004 30. Related party transactions (continued)
(i) Acquisition of Burren Energy Congo Limited (“BECL ”)
On 31 May 2003, the Company issued 40,040,000 10 pence ordinary shares to Castlehawk and 6,626,667 10 pence ordinary shares to Balor, in
connection with the acquisition by Burren Energy (Bermuda) Limited, a subsidiary undertaking, of the remaining 49% interest in BECL not already owned
by the Group. The agreed price per share was US$0.75 (£0.47), including a premium of US$0.59 (£0.37) per share. The nominal value of shares issued
on this date was £4,667,000 (US$7,467,000) in aggregate.
Until 31 May 2003 Balor held a beneﬁcial interest in relation to the oil and gas interests of Castlehawk in the Republic of Congo (Brazzaville) by which it
was entitled to 14.2 per cent of net proceeds accruing to Castlehawk arising from such interests. Castlehawk is the party from which the Group acquired
51 per cent and 49 per cent of the issued share capital of BECL on 22 January 2002 and on 31 May 2003 respectively. Accordingly, upon completion
of these acquisitions, Balor became entitled to 1,183,333 10 pence convertible redeemable shares of the Company and 6,626,667 10 pence ordinary
shares of the Company respectively. Upon Flotation in December 2003, the convertible redeemable ordinary shares were redesignated as ordinary
shares of 10 pence each and then consolidated into 20 pence ordinary shares. Balor subsequently waived its entitlement to any future beneﬁts that
may arise from its interest, including any arising in connection with the potential Congo bonus payments (see note 29).
(ii) Sunfloat loan
Secured loan note 9% 2008
During the ﬁrst six months of 2003, a $4,250,000 loan note was in place, which had been issued to First NIS Regional Fund, (“First NIS”), by Burren
Energy Shipping and Transportation Limited (“BEST’). This loan note bore interest at 12.5% per annum and was secured over certain shareholdings 
in the Group.
On 1 July 2003, a loan note swap agreement was concluded between certain members of the Group, First NIS and Sunﬂoat, whereby:
 the US$4,250,000 secured loan note 12.5% 2005 held by First NIS was cancelled, and replaced by a 9% 2008 loan note (“new BEST loan note”)
with a principal amount of £2,520,000 (US$4,500,000);
 Sunﬂoat requested that Burren Energy (Bermuda) Limited pay First NIS £608,000 ($1,000,000) of loan principal relating to a secured stepped rate
loan note otherwise payable to Sunﬂoat; and
 Sunﬂoat exchanged with First NIS £2,433,000 (US$4,000,000) of secured stepped rate loan notes 13%/17.5% 2004 (see (iii) below) and 4,000,000
warrants for the £2,520,000 (US$4,500,000) new BEST loan note.
The new BEST loan note bore interest at an annual rate of 12.5% up to 11 December 2003, being the date of the Flotation, following which the rate
reduced to 9% per annum. The principal was repayable in eight equal instalments commencing 30 June 2005, with the ﬁnal instalment payable on
31 December 2008. The loan note obligations were guaranteed by the Company and were secured by a pledge of 75% of the Group’s share holding
in BEST.
The principal and all outstanding interest was repaid on 31 December 2004.
(iii) Secured Stepped Rate Loan Notes and Exercise of Related Warrants
Between 7 January 2002 and 18 May 2002, the Group issued loan notes to meet its working capital requirements. A signiﬁcant number of the loan
notes were issued to related parties.
Subscribers for the loan notes received warrants to subscribe for new 20 pence ordinary shares at US$1.20 per share. All of the warrants were
exercised on Flotation in December 2003. The loan notes became repayable at the time of the Flotation and the remaining principal outstanding 
amount of such notes was used to pay up part of the subscription price of the warrants held by the note holders.
The movements in amounts due under these loan notes during 2003 was as follows:
Principal Principal
outstanding Debt settled Foreign outstanding
1 January Principal upon exercise exchange 31 December Interest
2003 Debt swap
(1)
payments of warrants movements 2003 payments
£’000 £’000 £’000 £’000 £’000 £’000 £’000
Tacoma E&P 3,106 – (760) (2,281) (65) – (358)
Cavendish 1,553 – (380) (1,140) (33) – (179)
Sunﬂoat 2,485 (2,433) – – (52) – (157)
First NIS – 2,433 (608) (1,825) – – (129)
Balor 221 – (55) (140) (26) – (26)
Beacon 124 – (30) (91) (3) – (14)
Andrew Rose
(2)
50 – (13) (32) (5) – (6)
Melanie Rose
(2)
50 – (13) (32) (5) – (6)
Brian Thurley
(2)
135 – (33) (85) (17) – (16)
(1)
Certain secured stepped rate loan notes held by Sunﬂoat were swapped with secured loan notes 12.5%/9% held by First NIS on 1 July 2003 as described in 
note (ii) above.
(2)
A Director of the Company, or a connected person of a Director, during the year.
BURREN ENERGY PLC ANNUAL REPORT AND ACCOUNTS 2004 55 30. Related party transactions (continued)
The number of new 20 pence ordinary shares subscribed for in the Company as a result of the exercise of the warrants is provided below.
Number Satisﬁed by:
Ordinary Cash Settlement
Shares received of debt
issued
(1)
£’000 £’000
Tacoma E&P 4,166,750 760 2,281
Cavendish 2,083,375 380 1,140
First NIS 3,333,400 608 1,825
Balor 267,435 49 140
Beacon 166,670 30 91
Andrew Rose 60,643 11 32
Melanie Rose 60,643 11 32
Brian Thurley 161,969 30 85
(1)
The number of shares has been adjusted to reﬂect a share consolidation on 11 December 2003.
(iv) Issues of Share Capital
In addition to those transactions disclosed above, the following related parties subscribed for new ordinary shares in the Company through the exercise
of warrants and options during 2003 and 2004.
2004 2003
Ordinary Cash Ordinary Cash
Shares received Shares received
Number £’000 Number
(1)
£’000
Balor –– 365,130 131
First NIS –– 1,666,667 608
Sunﬂoat –– 1,721,443 619
First NIS restructuring facility –– 1,500,000 547
Andrew Rose –– 23,279 8
Atul Gupta
(2)
–– 23,279 8
Brian Thurley –– 23,279 8
Roland Shaw
(2)
–– 2,802 1
Hywel John
(3)
140,133 28 23,280 8
Finian O’Sullivan
(2)
280,266 56 ––
(1)
The number of shares has been adjusted to reﬂect a share consolidation of 11 December 2003.
(2)
A Director of the Company during the relevant year.
(3)
A member of key management of the Group.
(v) T echnical Service Agreement
During the year ended 31 December 2003, the Group incurred consultancy fees from Baring Vostok Capital Partners, an afﬁliate of First NIS of £40,000.
The amount of fees payable at 31 December 2003 was £nil . The technical service agreement was terminated effective 31 May 2003.
31. Derivatives and financial instruments
Page 15 of the Financial review provides an explanation of the role that ﬁnancial instruments have had during the period in creating or changing the risks
the Group faces in its activities. The explanation summarises the objectives and policies for holding or issuing ﬁnancial instruments and similar contracts
and the strategies for achieving those objectives.
During the year ended 31 December 2004 the Group hedged an aggregate of 2,500,000 barrels (2003: 962,500) of crude oil via a cap and collar
agreement with a maximum Dated Brent Price of US$27.85 and a minimum of US$21.80. In respect of 2005 the Group entered into collar agreements
which hedge 83,333 of oil per month of the Group’s crude production at a Dated Brent price of between US$28.00 per barrel and US$30.15 per barrel.
The numerical disclosures in this note deal with ﬁnancial assets and liabilities as deﬁned in Financial Reporting Standard 13 “Derivatives and Other
Financial Instruments: Disclosures” (“FRS 13”). As permitted by FRS 13, short-term debtors and creditors have been excluded from certain disclosures.
The Group has no material ﬁnancial assets other than short-term debtors and cash and no ﬁnancial liabilities other than short-term creditors, ﬁnance
lease obligations and secured loan notes.
notes to the financial statements continued
year ended 31 December 2004
56 BURREN ENERGY PLC ANNUAL REPORT AND ACCOUNTS 2004 BURREN ENERGY PLC ANNUAL REPORT AND ACCOUNTS 2004 57
31. Derivatives and financial instruments (continued)
(i) Interest rate risk profile of financial liabilities
The interest rate risk proﬁle of ﬁnancial liabilities of the Group at 31 December 2004 was:
Fixed rate
weighted
Fixed rate average
weighted period for
average which rate
Fixed rate Floating rate Total interest rate rate is ﬁxed
£’000 £’000 £’000 % years
Currency
US$ – Borrowings 783 – 783 12.5 3.5
RUR – Finance leases 1,671 – 1,671 17.0 3.5
2,454 – 2,454 – –
The interest rate proﬁle of the ﬁnancial liabilities of the Group at 31 December 2003 was:
Fixed rate
weighted
Fixed rate average
weighted period for
average which rate
Fixed rate Floating rate Total interest rate rate is ﬁxed
£’000 £’000 £’000 % years
Currency
US$ – Borrowings 3,159 – 3,159 9.7 4.7
3,159 – 3,159 9.7 4.7
(ii) Interest rate risk profile of financial assets
The interest rate proﬁle of the ﬁnancial assets of the Group at 31 December 2004 was:
Floating Interest
rate free Total
£’000 £’000 £’000
Currency
Sterling 4,863 182 5,045
US$ 11,829 3,952 15,781
Other –3232
16,692 4,166 20,858
The interest rate proﬁle of the ﬁnancial assets of the Group at 31 December 2003 was:
Floating Interest
rate free Total
£’000 £’000 £’000
Currency
Sterling – 260 260
US$ 19,038 1,477 20,515
Other –1313
19,038 1,750 20,788
Financial assets presented above represent cash at bank and in hand. The ﬂoating rate cash at bank and in hand comprises deposits placed on money
markets for periods ranging from overnight to three months. notes to the financial statements continued
year ended 31 December 2004
58 BURREN ENERGY PLC ANNUAL REPORT AND ACCOUNTS 2004
31. Derivatives and financial instruments (continued)
(iii) Currency risk
The tables below show the extent to which the Group has monetary assets and liabilities in currencies other than the functional currency of the operating
company involved. These exposures give rise to the net exchange gains and losses recognised in the proﬁt and loss account. The currency risk
attributable to net monetary assets and liabilities at 31 December 2004 was:
Net foreign currency monetary assets
Sterling US$ Other Total
£’000 £’000 £’000 £’000
Functional currency
Sterling –30 – 30
US$ –– 32 32
–303262
At 31 December 2003 these exposures were as follows:
Net foreign currency monetary assets
Sterling US$ Other Total
£’000 £’000 £’000 £’000
Functional currency
Sterling –69 – 69
US$ –– 13 13
–691382
(iv) Maturity of financial liabilities
The maturity proﬁle of the Group’s ﬁnancial liabilities other than short-term creditors such as trade creditors and accruals, is set out in notes 19 and 21.
(v) Fair values of financial assets and financial liabilities
Set out below is a comparison by category of book values and fair values of all the Group’s ﬁnancial assets and liabilities:
2004 2003
Carrying Estimated Carrying Estimated
amount fair value amount fair value
£’000 £’000 £’000 £’000
Primary ﬁnancial instruments held or issued to ﬁnance the Group’s operations
Cash at bank and in hand 20,858 20,858 20,788 20,788
Secured loan notes – 9% 2008 (2002: 12.5% 2005) –– (2,520) (2,520)
Secured loan 12.5% 2007 (783) (783) (639) (639)
Finance lease obligations (1,671) (1,671) ––
18,404 18,404 17,629 17,629
Derivative ﬁnancial instruments held or issued to hedge the Group’s exposure 
on expected future sales
Collar agreements – (5,512) – (3,061)
– (5,512) – (3,061)
The fair values shown above are the amount that could be exchanged in an arm’s length transaction. Market values have been used to determine fair
value and have been obtained from an independent third party.
(vi) Hedges
2004 2003
£’000 £’000
Unrecognised losses at 1 January 3,061 1,571
Gains and losses arising in previous years that were recognised in the year (3,061) (1,571)
Gains and losses arising before 1 January that were not recognised in the year – –
Gains and losses arising in the period that were not recognised in the year 5,512 3,061
Unrecognised losses at 31 December 5,512 3,061
Unrecognised losses at each balance sheet date in the tables above were expected to be realised within the following twelve months. 31. Derivatives and financial instruments (continued)
(vii) Borrowing facilities
The Group has various undrawn committed borrowing facilities. The facilities available at 31 December 2004 in respect of which all conditions precedent
had been met were as follows:
£’000
Expiring in more than one year but not more than two years 7,829
This relates to the medium term loan facility described in note 19.
32. Contingent right to allotment of shares
Exercise period 31 December 31 December
2004 2003
From To Exercise price No. No.
Executive share options 20 Apr 2001 20 Apr 2005 US$0.80 189,765 379,530
10 Jul 2001 10 Jul 2005 US$0.80 45,543 91,087
27 Jan 2002 27 Jan 2006 US$0.80 235,309 235,309
27 Jan 2002 27 Jan 2006 US$1.20 300,000 300,000
15 Jun 2002 15 Jun 2006 US$0.90 30,000 265,309
29 Mar 2003 29 Mar 2007 US$0.60 735,000 1,045,000
22 Mar 2004 22 Mar 2008 US$1.20 475,000 630,000
24 May 2004 24 May 2008 US$1.20 250,000 250,000
12 Apr 2005 12 Apr 2009 US$1.20 625,000 800,000
2,885,617 3,996,235
Performance Share Plan 12 Nov 2006 12 May 2007 n/a 481,922 481,922
481,922 481,922
Other share options 16 Oct 1999 7 Dec 2008 US$1.20 136,334 136,334
16 Oct 2000 7 Dec 2008 US$1.20 272,668 272,668
31 Jan 2000 31 Jan 2010 US$0.90 416,369 416,369
1 Dec 2000 31 Jan 2010 US$0.90 416,369 416,369
12 Nov 2003 12 May 2010 Nil 123,256 154,614
1,364,996 1,396,354
Long-Term Incentive Plan 29 Mar 2003 29 Mar 2004 £0.20 – 840,798
13 Mar 2005 13 Mar 2006 £0.20 1,424,206 1,424,206
1,424,206 2,265,004
APS Scheme 1 Jan 2007 30 June 2007 Nil 126,537 –
126,537 –
Total contingent right to allotment of shares 6,283,278 8,139,515
Under the Long-Term Incentive Plan, awards may be taken in the form of shares or cash consideration at the discretion of the employee. The award is
dependent on meeting performance criteria as set out and determined by the Remuneration Committee. The amounts in place at 31 December 2004
and 2003 relate to awards in respect of the performance year ended 31 March 2001 and the performance year ended 31 March 2003, both of which
have fully vested. No amounts vested in relation to the performance year 31 March 2002. The award in respect of the 2003 year was based on the
Company’s share price in the 30 days following Flotation.
Awards under the Performance Share Plan normally vest on the third anniversary of their grant, subject to certain conditions including the achievement
of speciﬁed share price targets in the vesting period.
Awards under the deferred element of the APS Scheme can be exercised in the six months commencing from the third anniversary of the end of the
ﬁnancial year to which it relates. The amounts shown above were awarded in March 2004 in relation to the year ended 31 December 2003.
33. Events since the balance sheet date
Options exercised
On 5 January 2005, Sunﬂoat Shipping Limited, a related party of the Company exercised share options of 832,738 20 pence ordinary shares at a price
of £0.20 per share in cash. The nominal value of shares issued on this date was £167,000 in aggregate.
Purchase of 26% of Hindustan Oil Exploration Company (“HOEC”)
Since year end Burren has purchased a 26% interest in HOEC for £14 million and announced an open offer for a further 20%. US$25.1 million has 
been placed in an escrow account in relation to this offer. In addition Burren has entered into conditional purchase agreements in respect of a further
15% interest to enable the Group to acquire up to a maximum 51% interest for an aggregate cost of £29 million. Burren expects to provide additional
ﬁnancing to HOEC to enable it to complete its development projects.
BURREN ENERGY PLC ANNUAL REPORT AND ACCOUNTS 2004 59 60 BURREN ENERGY PLC ANNUAL REPORT AND ACCOUNTS 2004
Year to Year to Year to Year to Year to
31 Dec 2004 31 Dec 2003 31 Dec 2002 31 Dec 2001 31 Dec 2000
£’000 £’000 £’000 £’000 £’000
Consolidated proﬁt and loss account
Turnover – continuing operations 87,102 47,054 29,086 21,348 10,902
Turnover – discontinued operations – – 8,364 31,570 26,778
Operating proﬁt (loss) – continuing operations 49,040 20,124 10,807 1,397 (2,646)
Operating (loss) proﬁt – discontinued operations – – (1,650) (187) 1,237
Proﬁt (loss) on ordinary activities after taxation 38,809 16,215 7,391 2,267 (2,683)
Retained proﬁt (loss) for the year 34,696 15,753 6,377 2,582 (2,679)
2004 2003 2002 2001 2000
£’000 £’000 £’000 £’000 £’000
Consolidated balance sheet
Fixed assets 137,576 99,678 50,934 33,093 29,844
Net current assets/(liabilities) 14,049 13,893 (8,813) (4,282) (3,133)
Long term liabilities (2,151) (3,159) (4,675) (4,346) (4,100)
Deferred taxation (10,057) (1,982) – – –
Minority interests – – (3,770) 1,454 4
Net assets 139,417 108,430 33,676 25,919 22,615
Share capital and share premium 69,329 73,774 35,741 34,944 33,832
Reserves 70,088 34,656 (2,065) (9,025) (11,217)
Shareholders' funds 139,417 108,430 33,676 25,919 22,615
Year to Year to Year to Year to Year to
31 Dec 2004 31 Dec 2003 31 Dec 2002 31 Dec 2001 31 Dec 2000
£’000 £’000 £’000 £’000 £’000
Consolidated cashﬂow
Net cash inﬂow from operating activities 54,582 28,524 12,516 6,489 5,138
Payments to acquire ﬁxed assets (50,093) (25,506) (14,709) (6,692) (5,472)
Other information
Earnings (loss) per share 28.40p 16.84p 8.96p 3.69p (3.82)p
Diluted earnings (loss) per share 27.07p 15.59p 7.80p 3.16p (3.82)p
Return on average capital employed (ROACE) 44% 28% 23% 4% -6%
(Earnings before interest divided by average
net assets, excluding average net debt,
minority interest and deferred taxation)
Net funds/net debt
Net funds (debt) 18,404 17,629 (11,680) (6,032) (5,182)
Net assets 139,417 108,430 33,676 25,919 22,615
Gearing (net debt: net assets) n/a n/a 35% 23% 23%
31 Dec 2004 31 Dec 2003 31 Dec 2002 31 Dec 2001 31 Dec 2000
Production (barrels) 5,190,169 2,972,316 1,796,998 970,665 388,356
Production (bbld) 14,220 8,143 4,923 2,659 1,064
Burren Energy plc – five year summary 246 millionbarrels
proven & probable working interest reserves
(increased by 37%)
146%
increase in net profit
highlights
2D, 3D
two (three) dimensional 
(in relation to seismic surveys)
bareboat charter
a type of ship charter under which the
charterer hires the vessel without a crew 
and bears all the expenses of operation
bbl
barrel of oil
bopd
barrels of oil per day
Burren or the Company
Burren Energy Plc
Caspian Region
the countries of the Former Soviet Union
bordering the Caspian Sea
Congo
The Republic of Congo (Brazzaville)
entitlement 
with reference to reserves or production, 
that share of the gross amount to which 
the Company is entitled after taking account 
of the terms of the relevant PSA or PSC
Flotation
the Placing of ordinary shares in the Company
and Admission to the Ofﬁcial List of the UK
Listing Authority on 11 December 2003
FOB
Free on board
gas-lift
an artiﬁcial lift method employing deep gas
injection into a well bore in order to increase
ﬂow rates
Group
The Company and its subsidiaries
HOEC
Hindustan Oil Exploration Company Limited
HSE
Health, Safety & Environment
IPE
International Petroleum Exchange
km. (sq km)
kilometre (square kilometres)
L TIP
Long Term Incentive Plan
Maurel & Prom
an independent French oil exploration and
production company quoted on Euronext
stock exchange. Maurel & Prom is operator 
of the ﬁelds in Congo in which Burren has 
an interest.
P+P
Proven and Probable (reserves)
PSA, PSC
production sharing agreement (contract)
psig
pounds per square inch gauge
PSP
Performance Share Plan
Russian river system
the system of rivers in south-west Russia
comprising the Volga River, the Don River 
and the Volga-Don canal, which links central
Russia with the Black Sea
shut-in
refers to an existing well which is closed 
and not producing
Tacoma
Tacoma Petroleum Holding Limited and
subsidiaries, a Geneva based group engaged
in oil trading, reﬁning and distribution primarily
in West Africa
work-over
major repairs or modiﬁcations to a well 
which restore or enhance production
glossary
74%
year on year production growth
146 million barrels
proven & probable entitlement reserves
(increased by 22%)
 25 directors’ report
 27 corporate governance
 30 remuneration report
 34 statement of directors’ responsibilities
 35 independent auditors’ report
 36 financial statements
 41 notes to the financial statements
 60 five year summary
 ibc glossary
 01 highlights
 02 chairman’s statement
 03 year in review
 04 Burren at a glance
 06 chief executive’s review
 08 review of operations
 14 financial review
 16 board of directors
 18 senior management
 19 officers and professional advisers
 20 corporate & social responsibility
 22 health, safety and the environment
 23 reserves
Burren Energy is an independent oil & gas 
exploration and production group active 
in frontier markets. It has assets in four 
principal geographic regions: the Caspian 
region, West Africa, North Africa, and the 
Indian subcontinent. 
Burren aims to become the vehicle of choice 
for investors seeking to invest in a focused 
portfolio of production, development and 
exploration assets in frontier regions of 
the world. BURREN ENERGY PLC ANNUAL REPORT AND ACCOUNTS 2004
www .burren.co.uk
Burren Energy
Kierran Cross
2nd Floor
11 Strand
London
WC2N 5HR
T. +44 (0)20 7484 1900
F. +44 (0)20 7484 1910
BURREN ENERGY PLC ANNUAL REPORT AND ACCOUNTS 2004