BRITOIL SEES LOWER U.K. EXPLORATION EXPENDITURE

  Britoil Plc's &lt;BTOL.L> exploration
  expenditure for the U.K. In 1987 was likely to be only about a
  third of the level in 1986, though overseas expenditure would
  remain approximately the same, Chief executive David Walker
  said.
      He told reporters following the release of the company's
  1986 figures that project expenditure would also remain at 1986
  levels.
      U.K. Project expenditure in 1986 rose to 208 mln stg from
  184 mln while exploration expenditure dropped to 87 mln from
  156 mln. Overseas exploration fell to 28 mln from 58 mln in
  1985.
      Earlier, Britoil posted a drop in pretax profit for 1986 to
  134 mln stg from 759 mln in 1985, before an extraordinary
  charge of 50 mln stg on the company's U.S. Assets. The results
  were slightly better than analysts forecast and the share
  firmed to 231p from 222p at last night's close. Chairman Sir
  Philip Shelbourne said the collapse in the oil price in 1986
  had made the period extremely difficult but the company had
  come through remarkably well.
      Provided the recovery in oil prices was maintained, the
  conditions would be right for a substantially improved
  performance this year.
      He added that the firmness of oil prices in March, when
  they were normally weaker, made him "a bit encouraged" about the
  prospects for future levels.
      Walker added that Britoil would feel confident if the price
  stayed within a band of 15 dlrs to 20 dlrs a barrel.
      Britoil had received some 100 responses to its announcement
  of a desire to sell the assets and was asking for bids by the
  latter part of April.
      End-year reserves rose to 603 mln barrels of oil compared
  with 503 mln previously. However, Walker noted that this
  included a revised definition of reserves.
      If 1985 figures were restated along the same lines, the
  reserve figure would show a drop from 720 mln barrels
  previously.
      Gas reserves also eased to 3,568 billion cubic feet from a
  restated 3,660 billion.
  

