Burren Energy buys 26% stake in HOEC

Burren Energy of UK has acquired US energy major Unocal Corp's entire 26.01 per cent stake in Hindustan Oil Exploration Co Ltd for $26.01 million and has made an open offer to acquire further 20 per cent stake.

Burren Energy acquired Unocal's 1,52,81,633 equity shares in HOEC at Rs 74.30 per share, aggregating to Rs 113.71 crore ($26,010,000), an official involved in the deal said.

Further, Burren Energy has made an open offer to acquire 20 per cent shares (1,17,48,990 equity shares) at Rs 92.41 per share.

"The average weekly high and low of the closing price of the shares of HOEC for the 26-week period ended February 11, 2005 was Rs 82.87 on BSE and Rs 82.97 on NSE whereas the average of daily high and low prices of shares of HOEC for the two-week period ended February 14 was Rs 92.05 on BSE and Rs 92.41 on NSE," he said.

HOEC currently produces 4500 barrels of crude oil per day from PY-3 field in Cauvery basin. HOEC has 21 per cent stake in PY-3 where Jehan Energy (18 per cent), Tata Petrodyne (21 per cent) and ONGC (40 per cent) are the other partners.

HOEC operates in nine fields spread from Gujarat to Assam. These include 50 per cent held Asjol marginal oilfield, PY-1 field in Cauvery basin.

As per the audited financial results of HOEC for the year ended March 31, 2004, the book value per share was Rs 33.81, return on net worth was 11.14 per cent and earning per share was Rs 3.77.