Final Results - Part 2

Enterprise Oil PLC
8 March 2001

PART 2


 Consolidated Profit and Loss Account
 for the year ended 31 December 2000
                                                              2000       1999
                                                  Notes         £m         £m
 Turnover                                                  1,841.2      850.0
 Cost of sales                                        2    (641.1)    (427.5)
 Gross profit                                              1,200.1      422.5
 Exploration costs                                          (68.0)     (64.0)
 Administrative and selling expenses                        (36.0)     (35.9)
 Group operating profit                                    1,096.1      322.6
 Share of operating profit of associate                        0.2          -
 Total operating profit                                    1,096.3      322.6
 Income from fixed asset investments                           0.7        0.7
 Gain on sales of oil and gas assets                  3        0.7        1.5
 Interest receivable and similar income                       42.1       18.3
 Interest payable and similar charges                       (80.5)     (53.9)
 Profit on ordinary activities before taxation             1,059.3      289.2
 Tax on profit on ordinary activities                 4    (570.5)    (112.0)
 Profit on ordinary activities after taxation                488.8      177.2
 Dividends- preference shares (non-equity)                   (6.0)      (6.9)
 Dividends - ordinary shares                                (38.9)     (35.8)
 Preference share redemption costs                           (1.8)          -
 Retained profit for the financial year                      442.1      134.5
 Basic earnings per ordinary share                    5      98.7p      34.8p
 Diluted earnings per ordinary share                  5      97.6p      34.6p
 Adjusted earnings per ordinary share                 5     106.9p      34.8p
 Dividends per ordinary share                                 8.0p       7.3p

 The results for 2000 include an exceptional charge in cost of sales,
 relating to a ceiling test write-down of £40.2 million (note 2).

 Consolidated Balance Sheet
 as at 31 December 2000
                                                              2000       1999
                                                  Notes         £m         £m
 Fixed assets
 Intangible assets                                    6      206.5      209.8
 Tangible assets                                      6    2,232.8    2,106.8
 Investments:
 Investment in associate                                      34.7          -
 Other investments                                            51.3       52.6
 Total investments                                            86.0       52.6
                                                           2,525.3    2,369.2
 Current assets
 Stocks                                                       15.9       15.1
 Debtors                                                     252.9      208.2
 Investments (liquid resources)                              690.6      307.7
 Cash at bank and in hand                                    142.7       68.5
                                                           1,102.1      599.5
 Creditors: amounts falling due within one                 (720.1)    (437.2)
 year
 Net current assets                                          382.0      162.3
 Total assets less current liabilities                     2,907.3    2,531.5
 Creditors: amounts falling due after more               (1,106.0)  (1,104.7)
 than one year
 Provisions for liabilities and charges                    (348.5)    (349.0)
 Net assets                                                1,452.8    1,077.8
 Capital and reserves
 Called up share capital                                     124.7      198.9
 Share premium account                                       103.0      100.5
 Capital redemption reserve                                  191.7      103.8
 Other reserves                                              179.7      179.7
 Profit and loss account                                     853.7      494.9
 Shareholders' funds                                       1,452.8    1,077.8
 Analysis of shareholders' funds
 Equity                                                    1,452.8    1,003.5
 Non-equity                                                      -       74.3
                                                           1,452.8    1,077.8
 Consolidated Cash Flow Statement
 for the year ended 31 December 2000
                                                              2000       1999
                                                  Notes         £m         £m
 Cash flow from operating activities              7 (i)    1,445.3      514.4
 Returns on investments and servicing of         7 (ii)     (76.5)     (84.0)
 finance
 Taxation                                        7 (ii)    (318.0)     (38.1)
 Operating cash flow after tax and finance                 1,050.8      392.3
 costs
 Capital expenditure and financial investment:
          - capital expenditure (including       7 (ii)    (409.9)    (437.5)
          asset acquisitions)
          - financial investment                            (17.1)     (14.0)
 Acquisitions                                    7 (ii)     (17.7)          -
 Equity dividends paid                                      (37.1)     (13.7)
 Cash inflow (outflow) before management of                  569.0     (72.9)
 liquid resources and financing
 Management of liquid resources                  7 (ii)    (383.9)       51.1
 Financing - issue of shares                     7 (ii)        2.6        2.0
          - (decrease) increase in debt          7 (ii)     (29.1)       63.4
          - redemption of preference shares      7 (ii)     (89.7)          -
 Increase in cash in the year                                 68.9       43.6
 Reconciliation of net cash flow to movement                  2000       1999
 in net debt
                                                  Notes         £m         £m
 Increase in cash in the year                   7 (iii)       68.9       43.6
 Cash outflow (inflow) from movement in debt    7 (iii)       29.1     (63.4)
 and lease financing
 Cash outflow (inflow) from movement in liquid               383.9     (51.1)
 resources
 Change in net debt resulting from cash flows                481.9     (70.9)
 Translation differences                                    (51.2)     (19.2)
 Other movements                                             (1.2)      (0.4)
 Movement in net debt in the year                            429.5     (90.5)
 Net debt at 1 January                          7 (iii)    (860.7)    (770.2)
 Net debt at 31 December                        7 (iii)    (431.2)    (860.7)
 Consolidated Statement of Total Recognised Gains and Losses
 for the year ended 31 December 2000
                                                  Notes       2000       1999
 Profit on ordinary activities after taxation                   £m         £m
 Unrealised currency translation differences                 488.8      177.2
 Total recognised gains and losses relating to                 4.6        1.5
 the year
 Prior year adjustment                                       493.4      178.7
 Total recognised gains and losses since the                     -       58.8
 last financial statements
                                                             493.4      237.5

 The currency translation differences shown above are the net result of
 retranslation to sterling of significant overseas investments and certain
 foreign currency borrowings and preference shares which provide a partial
 hedge against the impact of currency movements on those investments.


 In 1999 a prior year adjustment arose from the implementation during the
 year of the revised accounting policy for decommissioning costs (note 1).

 1. Accounting policies

 The financial statements have been prepared under the historic cost
 convention and in accordance with applicable United Kingdom accounting
 standards. During the year the group adopted FRS 15 Tangible Fixed Assets
 and FRS 16 Current Tax. There was no effect on the group's net assets and
 results for the period arising from the adoption of either of these
 financial reporting standards. FRS 12 Provisions, Contingent Liabilities and
 Contingent Assets, which affects the way the group accounts for
 decommissioning costs, was adopted by the group in 1999 and the accounting
 policy on decommissioning was changed accordingly. The adoption of the
 policy, which was made by way of an adjustment to previously published
 results as though the revised policy had always been applied by the group,
 resulted in an increase in shareholders' funds, in 1999 of £58.8 million.

                                                              2000       1999
 2. Cost of Sales                                               £m         £m
 Depreciation of development costs                           362.7      203.8
 Operating costs                                             253.5      199.5
 Research and development                                      1.5        1.8
 Royalties                                                    23.4       22.4
                                                             641.1      427.5

 (i) An exceptional charge for depreciation of £40.2 million arose from a
 reduction in the estimated reserves of the Garden Banks 161 field in the US
 Gulf of Mexico. There was no related taxation.


 (ii) Included in operating costs in 1999 is an amount of £9.0 million
 relating to restructuring costs charged to the group by operators of joint
 ventures. Also included in 1999 as a reduction in the depreciation charge is
 an amount of £7.1 million reflecting the partial reversal of past ceiling
 tests provisions.

 3. Gains on Sale of Oil and Gas Assets

 The gain on disposal of fixed assets in 1999 primarily reflects the gain of
 £2.2 million on the sale of the group's entire interest in the Johnston
 field in the Southern Gas Basin, together with certain appraisal acreage, to
 Eastern Natural Gas Offshore.
                                                              2000       1999
 4. Tax on Profit on Ordinary Activities                        £m         £m
 UK petroleum revenue tax charge (credit):
 Current                                                     115.0       57.1
 Deferred                                                    (3.8)      (5.7)
 Norwegian petroleum tax:
 Current                                                       0.4          -
 Deferred                                                     40.0          -
 UK corporation tax charge (credit):
 current at 30% (1999: 30%)                                  162.4       42.8
 deferred                                                    (9.4)       17.9
 Overseas corporate tax charge (credit),
 principally Norwegian taxes:
 Current                                                     313.4        0.1
 Deferred                                                   (47.6)      (0.2)
 Share of associate's tax                                      0.1          -
                                                             570.5      112.0
 The credit of £47.6 million in deferred overseas corporate tax in 2000
 arises form revised expectations of future capital expenditure profiles.


 The UK corporation tax charge before and after double taxation relief,
 principally relating to Norwegian corporate taxes, is £339.2 million (1999:
 £42.8 million) and £162.4 million (1999: £42.8 million) respectively.

 5. Earnings per share

 The calculation of basic earnings per share is based upon the profit
 attributable to ordinary shareholders for 2000 of £481.0 million (1999: £
 170.3 million) and the adjusted weighted average of 487.5 million ordinary
 shares outstanding during the year (1999: 489.8 million ordinary shares).
 Profit attributable to ordinary shareholders is arrived at by deducting
 preference share dividends together with the premium attributable to the
 redemption of the preference shares from profit on ordinary activities after
 taxation. The weighted average number of ordinary shares outstanding
 excludes 11.1 million shares (1999: 8.1 million) held by employee share
 schemes on which the dividend has been waived by the trustees of the
 employee share ownership plan.


 Diluted earnings per share differs from basic earnings per share in that the
 weighted average number of ordinary shares includes potential shares, being
 any financial instrument or right that may entitle its holder to ordinary
 shares, such as share options. The weighted average number of ordinary
 shares used to calculate diluted earnings per share is 493.0 million in 2000
 (1999: 491.9 million). The total number of dilutive potential shares is 5.5
 million (1999: 2.1 million), comprising 1.9 million (1999: 0.2 million) in
 respect of the Senior Executive Share Option Schemes, 3.1 million (1999: 1.5
 million), in respect of the Long Term Performance Related Share Schemes and
 0.5 million (1999: 0.4 million) in respect of the Savings Related Share
 Option Schemes.


 Adjusted earnings per share differs from basic earnings per share in that
 the profit attributable to ordinary shareholders for 2000 excludes an
 exceptional item (see note 2). This measure, when compared with 1999, more
 accurately reflects the ongoing group performance for 2000.
                                                                At         At
                                                                31         31
                                                          December   December
 6. Fixed Assets                                              2000       1999
 Capital expenditure comprises                                  £m         £m
 Exploration and appraisal expenditure                       102.9      100.0
 Development expenditure:
 Development                                                2447.4      320.0
 Capitalised interest                                         35.4       49.5
 Decommissioning                                               1.4       13.1
 Acquisitions                                                 85.3        7.0
                                                             472.4      389.6
 Other fixed assets                                            7.0        2.1
                                                             479.4      491.7

 i) Ceiling tests were conducted as at 31 December 2000. Tests were performed
 on a field-by-field basis other than in the case of shared facilities where
 groups of fields were considered.

 The following assumptions were used in
 performing the ceiling tests:
                                                                At         At
                                                                31         31
                                                          December   December
                                                              2000       1999
 Oil price
 2001                                                          $20        $15
 2002-2004                                                     $18        $15
 2005 Onwards                                             $18 flat   $15 flat
 Foreign exchange rate                              2001 $1.55:£1.   $1.6: £1
                                               Thereafter, $1.6:£1
 Cost inflation per annum                                        -          -
 Discount rate                                                 10%        10%

 In 2000 there was a deficiency totalling £40.2 million in the Garden Banks
 161 field the US Gulf of Mexico and, accordingly, accelerated depreciation
 was provided within cost of sales (see note 2(i)).


 In 1999 an amount of £7.1 million was included in cost of sales, as a
 reduction of the depreciation charge, reflecting the partial reversal of
 past ceiling test provisions (see not 2(ii)).

 7. Cash Flow Statement                                       2000       1999
 (i) Reconciliation of operating profit to                      £m         £m
 operating cash flow
 Operating profit                                          1,096.1      322.6
 Depreciation charges                                        367.6      211.4
 Exploration costs                                            68.0       64.0
 Movements in stocks                                         (0.8)        4.3
 Movements in operating debtors                             (59.8)     (84.0)
 Movements in operating current liabilities                 (23.0)      (8.8)
 Other deferrals and accruals of operating                     2.8        4.9
 cash flows
 Net cash inflow from operating activities                 1,445.3      514.4
                                                              2000       1999
 (ii) Analysis of cash flow captions                            £m         £m
 Returns on investments and servicing of
 finance:
 Interest received and similar income                         38.1       17.5
 Interest paid                                             (108.3)     (94.5)
 Interest element of finance lease rentals                   (0.3)      (0.1)
 paid
 Preference dividends paid                                   (6.0)      (6.9)
 Net cash outflow for returns on investments                (76.5)     (84.0)
 and servicing of finance
 Taxation:
 UK petroleum revenue tax                                  (112.9)     (31.6)
 UK corporate taxes                                         (64.8)      (6.5)
 Overseas tax                                              (140.3)          -
 Net cash outflow for tax paid                             (318.0)     (38.1)
                                                              2000       1999
 Capital expenditure and financial investment:                  £m         £m
 Capital expenditure:
         Development                                       (237.7)    (310.1)
         Exploration and appraisal                          (82.2)    (113.3)
         Sale of licence interests                            13.2        2.9
         Purchase of licence interests                      (96.2)     (14.9)
         Purchase of other fixed assets                      (7.0)      (2.1)
 Net cash outflow for capital expenditure                  (409.9)    (437.5)
 Acquisition
 Investment in associates                                   (17.7)          -
 Net cash outflow from corporate acquisitions               (17.7)          -
                                                              2000       1999
 Management of liquid resources:                                £m         £m
 Purchase of investments                                 (2,406.8)  (1,102.7)
 Sales of investments                                      2,022.9    1,153.8
 Net cash (outflow) inflow from management of              (383.9)       51.1
 liquid resources
 Financing:
 Issue of ordinary share capital                               2.6        2.0
 Debt repaid                                                (13.3)    (138.2)
 Revolving credit facility repaid                           (45.0)      (5.0)
 Revolving credit facility drawdown                           30.5       35.0
 New debt issues                                                 -      188.2
 Debt issue costs                                            (1.0)      (1.8)
 Capital element of finance lease rental                     (0.3)     (14.8)
 payments
 Redemption of preference shares                            (89.7)          -
 Net cash (outflow) inflow from financing                  (116.2)       65.3

                                 At                          Other         At
                                  1            Exchange   non-cash         31
                            January                                  December
                               2000      Cash  movement    Changes       2000
                                         flow
 (iii) Analysis of net           £m        £m        £m         £m         £m
 debt
 Cash at bank and in hand      68.5      68.1       6.1          -      142.7
 Overdrafts                   (1.7)       0.8         -          -      (0.9)
                               66.8      68.9       6.1          -      141.8
 Current asset investments    307.7     383.9     (1.0)          -      690.6
 (liquid resources)
 Debt due within one year   (132.7)      49.9       1.4     (76.3)    (157.7)
 Debt due after one year   (1,097.6)    (21.1)    (57.7)       75.1  (1,101.3)
 Finance leases               (4.9)       0.3         -          -      (4.6)
                            (860.7)     481.9    (51.2)      (1.2)    (431.2)
 8. Status of financial
 Information
 The information contained herein does not constitute the company's statutory
 accounts for the years ended 31 December 2000 or 1999. Statutory accounts
 for 1999 have been delivered to the Registrar of Companies and those for
 2000 will be delivered following the company's annual general meeting. The
 auditor has reported on both the 2000 and 1999 accounts; its reports were
 unqualified and did not contain statements under section 237 (2) or (3) of
 the Companies Act 1985.


Proven and Probable Oil and Gas Reserves

                                                      Crude oil     Gas   Total
                                                       (mmbbls) (mmboe) (mmboe)
Net proven and probable oil and gas
reserves at 1 January 2000                              1,022.1   245.1 1,267.2
Changes during year:
Revisions of previous estimates                           (5.5)   (0.0)   (5.5)
Purchase, exchange of reserves                             92.5    17.5   110.0
Discoveries, extensions and other additions                27.6   117.1   144.7
Disposals, exchange of reserves                               -   (1.3)   (1.3)
Production                                               (90.8)  (11.9) (102.7)

Net proven and probable reserves at 31 December 2000    1,045.7   366.5 1,412.2

Of which:
Fields in production                                      598.2   135.0   733.1
Fields under development                                  213.9    56.1   270.0
Fields awaiting development                               233.7   175.4   409.1

                                                        1,045.7   366.5 1,412.2



Notes: Crude oil includes natural gas liquids and condensate; 'mmbbls' means
million barrels; 'mmboe' means million barrels of oil equivalent. Gas reserves
are converted to barrels of oil equivalent at the rate of 5,800 cubic feet of
gas per barrel.


Totals may differ from the sum of the components due to rounding effects.


Group share of associate reserves

                                                       Undiluted   Fully dilute
                                                          equity         equity
                                                        (mmbbls)       (mmbbls)

Proven and probable reserves at 31 December 2000           248.7          170.1
Proved oil reserves at 31 December 2000                    114.2           78.1



Note: Proved oil reserves for the associate are from the independent
consultant, Ryder Scott volumetric reserve report as of 30 June 2000, adjusted
for movements for the second half of 2000.




Additional Information Under US Accounting Principles


The production figures, reserves and results reported in this statement are
prepared in accordance with the group's established reporting and accounting
policies which comply with UK accounting principles. The following
supplementary information is presented under US accounting principles:

(in millions, except per ADS amounts)         ------2000------  ------1999------

Approximate net income (after tax)              $556.5   £372.6   $125.4  £77.8

Approximate shareholders' equity at 31        $1,559.8 £1,044.2 $1,313.1 £814.7
December

Approximate earnings/loss per ADS (2)
Basic                                           $3.228   £2.161   $0.700 £0.434
Diluted                                         $3.192   £2.137   $0.696 £0.432

Dividends per ADS (2)                           $0.359   £0.240   $0.353 £0.219


 1. US dollar amounts are shown translated for convenience at the exchange rate
    on 31 December 2000 of $1.4938: £1 (1999: $1.6117: £1).
 2. On the basis of one ADS for every three ordinary shares.



The principal recurring differences between UK and US generally accepted
accounting principles ('GAAP') as applicable to the group relate to business
combinations and deferred taxation. Certain business combinations completed
prior to 1990 were accounted for based on historical costs under UK GAAP. US
GAAP requires these combinations to be dealt with under purchase accounting,
based on fair valuations, with consequent adjustments to depreciation charges,
interest capitalised and deferred taxation. Also, US GAAP requires full
provision in respect of deferred tax temporary differences between the tax
basis of assets and liabilities and their carrying values for accounting
purposes, whereas UK GAAP requires provision for deferred tax timing
differences only to the extent it is expected that assets or liabilities will
crystallise in the foreseeable future.


Production in accordance with US principles (i.e. excluding volumes
attributable to royalties payable in cash or in kind) averaged 277.0 thousand
barrels of oil equivalent ('boe') per day for 2000, compared with 208.4
thousand boe per day in 1999.


Oil and gas reserve quantities recorded in accordance with US GAAP comprise
proved developed and undeveloped reserves, rather than the definition of
proven and probable reserves used by the group. The group's total proved
developed and undeveloped reserves at 31 December 2000 were 915.7 million
barrels of oil equivalent compared with 900.7 million barrels of oil
equivalent at 31 December 1999.