Baring Vostok’s Burren Energy raises £40m

Burren Energy, the UK-based oil exploration and production group partly owned by Baring Vostok Capital Partners, has raised £40m through a 23 per cent share placement on the London Stock Exchange.

The placement of oil firm Burren Energy on the London Stock Exchange has raised £40m, according to private equity backer Baring Vostok Capital Partners.

Burren Energy was valued at £175m by the placing price of 130p per share. Baring Vostok invested an undisclosed sum in the business in 1995, one year after its formation in 1994. The firm has not sold any shares as part of the placement and retains a stake of 33 per cent, while management own almost 11 per cent. 

Burren Energy, which operates mainly in the Caspian region of the former Soviet Union and West Africa, will use the funds raised to develop new fields in Turkmenistan and The Republic of Congo. Earlier this year it acquired Tacoma Resources, a Swiss trading group with exploration and production assets in the Republic of Congo. 

The firm made an operating profit of £9.3m in the six months to 30 June 2003 on turnover of £18.6m, compared with an operating profit of £9.2m and turnover of £37.5m for the whole of 2002. It was founded by CEO Finian O’Sullivan, who spotted the potential of the Caspian region’s oil reserves while working in the area as a geologist and geophysicist.

“As a listed company we will be able to move forward even more effectively and take advantage of the many growth opportunities that are presenting themselves in our industry,” said O’Sullivan.

Baring Vostok was founded in 1994 to manage a $160m direct investment fund sponsored by ING Asset Management. The firm now has assets of more than $400m under management and is part of Baring Private Equity Partners, which has announced plans to buy itself out from ING.