Interim Results - Part 2

ENTERPRISE OIL PLC
3 September 1999

Part 2

Consolidated Profit and Loss Account

                         Six months ended  Six months ended        Year ended
                             30 June 1999      30 June 1998  31 December 1998
                              (Unaudited)       (Unaudited)        (Restated)
                                                 (Restated)          (note 1)
                                                   (note 1)          
                                       £m                £m                £m

Turnover (note 3)                   293.4             320.8             563.1
Cost of sales (note 4)            (181.5)           (230.8)           (436.9)

Gross profit                        111.9              90.0             126.2
Exploration costs                  (27.0)            (59.5)           (142.2)
Administrative and selling 
expenses (note 5)                  (15.1)            (15.7)            (41.0)

Operating profit (loss) (note 5)     69.8              14.8            (57.0)
Income from fixed asset investments   0.7                 -               0.7
Gain on sales of oil and gas assets 
(note 9)                              0.7              30.4              34.8
Interest receivable and similar 
income (note 6)                       8.4              19.6              38.7
Interest payable and similar 
charges (note 6)                   (21.4)            (26.1)            (46.8)

Profit (loss) on ordinary 
activities before taxation           58.2              38.7            (29.6)
Tax on profit (loss) on ordinary 
activities (note 7)                (22.6)             (2.8)              27.3

Profit (loss) on ordinary activities 
after taxation                       35.6              35.9             (2.3)
Dividends - preference shares       (3.7)             (3.3)             (6.5)
          - ordinary shares        (13.7)            (34.0)            (34.0)

Retained profit (loss) for 
the period                           18.2             (1.4)            (42.8)

Basic earnings (loss) per 
ordinary share (note 8)              6.5p              6.6p            (1.8p)

Diluted earnings (loss) per 
ordinary share                       6.5p              6.6p            (1.8p)

Dividends per ordinary share         2.8p              6.9p              6.9p


The result for the year ended 31 December 1998 includes significant amounts
relating to ceiling test write-downs (note 4) and, the amendment of a
transportation agreement (note 4), an unsuccessful drilling programme in the
Middle East (note 5), a restructuring programme (note 5), a gain on the sale
of oil assets (note 9) and deferred tax credits (note 7).  The amounts
relating to the transportation agreement and the gain on sale of oil assets
also impacted on the result for the six months ended 30 June 1998.


Group Balance Sheet

                                               30 June 1999  31 December 1998
                                                (Unaudited)        (Restated)
                                                                     (note 1)
                                                         £m                £m

Fixed assets                                          
Intangible assets (note 9)                            232.6             199.3
Tangible assets (note 1 and 9)                      2,038.3           1,883.7
Investments                                            42.5              41.2
                                                    
                                                    2,313.4           2,124.2

Current assets
Stock                                                  17.8              20.1
Debtors                                               175.8             173.1
Investments (liquid resources)                        166.4             355.3
Cash at bank and in hand                               54.5              36.7

                                                      414.5             585.2
Creditors: amounts falling due within one year      (472.3)           (565.2)

Net current (liabilities) assets                     (57.8)              20.0

Total assets less current liabilities               2,255.6           2,144.2
Creditors: amounts falling due after more 
than one year                                       (971.7)           (904.9)
Provisions for liabilities and charges (note 1)     (315.0)           (299.5)

Net assets                                            968.9             939.8


Capital and reserves
Called up share capital                               198.8             198.8
Reserves (note 1)                                     770.1             741.0

                                                      968.9             939.8


Analysis of shareholders' funds
Equity                                                894.6             865.5
Non-equity                                             74.3              74.3

                                                      968.9             939.8


Consolidated Cash Flow Statement

                         Six months ended  Six months ended        Year ended
                             30 June 1999      30 June 1998  31 December 1998
                              (Unaudited)       (Unaudited)        (Restated) 
                                                 (Restated)        
                                       £m                £m                £m

Cash flow from operating 
activities (note 10 (i))            156.3             216.1             360.2
Returns on investments and servicing 
of finance (note 10 (ii))          (41.7)            (25.5)            (54.0)
Taxation (note 10 (iv))            (20.3)            (12.9)            (74.9)

Operating cash flow after tax and 
finance costs                        94.3             177.7             231.3
Capital expenditure and financial investment:
- capital expenditure 
(note 10(v))                      (228.2)           (271.7)           (608.5)
- financial investment              (0.9)             (5.8)            (13.2)
Acquisitions and disposals              -                 -             141.9
Equity dividends paid                   -            (51.7)            (85.6)

Cash flow before use of liquid 
resources and financing           (134.8)           (151.5)           (334.1)
Management of liquid resources      192.4            (15.9)             156.5
Financing - issue of shares           0.2               0.4               0.5
- (decrease) increase in debt      (29.9)             197.7             180.9

Increase in cash in the period       27.9              30.7               3.8


Reconciliation of net cash flow to movement in net debt

Increase in cash in the year         27.9              30.7               3.8
Cash outflow (inflow) from decrease 
in debt and lease financing          29.9           (197.7)           (180.9)
Cash (inflow) outflow from movement 
in liquid resources               (192.4)              15.9           (156.5)

Change in net debt resulting 
from cash flows                   (134.6)           (151.1)           (333.6)
Translation differences            (29.9)               5.8               7.3
Other differences                   (0.4)             (0.3)             (0.8)

Movement in net debt in the 
period                            (164.9)           (145.6)           (327.1)
Net debt brought forward          (770.2)           (443.1)           (443.1)

Net debt at end of period 
(note 10 (ii))                    (935.1)           (588.7)           (770.2)


Consolidated Statement of Total Recognised Gains and Losses

                         Six months ended  Six months ended        Year ended
                             30 June 1999      30 June 1998  31 December 1998
                              (Unaudited)       (Unaudited)        (Restated) 
                                                 (Restated)        
                                       £m                £m                £m

Profit (loss) on ordinary activities 
after taxation                       35.6              35.9             (2.3)
Unrealised currency translation 
differences                          10.7             (3.3)               6.2

Total recognised gains and losses 
relating to the period               46.3              32.6               3.9

Prior year adjustment                58.8                 -                 -

Total recognised gains and losses 
since the last financial statement  105.1              32.6               3.9


The prior year adjustment arises from the implementation during the period of
the revised accounting policy for decommissioning costs, (see note 1).

The unrealised currency translation differences shown above are the net result
of retranslating to sterling, in accordance with our accounting policy, of
significant overseas investments and certain foreign currency borrowings which
provide a partial hedge against the impact of currency movements on those
investments.


Notes

1. Accounting policies

The interim accounts have been prepared using the same policies as those
adopted in the accounts for the financial year ended 31 December 1998, other
than where changes were necessary to implement FRS12 'Provisions, Contingent
Liabilities and Contingent Assets' and are unaudited. The financial
information for the year ended 31 December 1998, as restated, is an abridged
version of the accounts for that year which were delivered to the Registrar of
Companies. The accounts contained an unqualified auditor's report and did not
contain a statement under section 237(2) or (3) of the Companies Act 1985.

Implementation of FRS12 'Provisions, Contingent Liabilities and Contingent
Assets'

This standard, which affects the way the group accounts for decommissioning
costs, has been adopted by the group for the first time in these accounts. 
Comparative amounts have been restated as appropriate. 

Licensees are generally required to restore oil and gas field sites at the end
of the producing lives of the fields to a condition acceptable to the relevant
authorities.  The expected cost of decommissioning, discounted to its net
present value, is provided and capitalised when the installation of facilities
is deemed to have had an environmental impact.  The capitalised cost is
amortised over the life of the operation and the increase in the net present
value of the expected cost is included in interest.  In practice the adoption
of the new policy, which has been made by way of an adjustment to previously
published results as though the revised policy had always been applied by the
Group, has had the following effects on prior year figures:

1. Fixed assets at 31 December 1998 have increased by £25.3 million and
provisions have decreased at that date by £33.5 million from the figures
previously published resulting in an increase in shareholders' funds of £58.8
million.

2. The interest charge for the six months ended 30 June 1998 and the year end
31 December 1998 has increased by £2.9 million and £5.2 million respectively
and operating profit for those periods has increased by £2.8 million and £3.9
million respectively.

3. The gain arising on disposal of a package of UKCS North Sea assets in 1998
has reduced by £8.8 million.


2. Adjusted results for the six months to 30 June 1998.

For comparative purposes only, adjustment has been made to exclude the gain
arising on the disposal of a package of North Sea assets sold to Intrepid
North Sea Limited in 1998 and the contribution from those assets in the first
half of 1998.

                               Unadjusted    Adjustment for          Adjusted
                         six months ended   assets disposed  six months ended 
                             30 June 1998        of in 1998      30 June 1998 
                              (Unaudited)                         (Unaudited) 
                               (Restated)                          (Restated)
                                       £m                £m                £m

Turnover                            320.8            (33.1)             287.7
Cost of sales                     (230.8)              30.6           (200.2)

Gross profit                         90.0             (2.5)              87.5
Exploration costs                  (59.5)               0.4            (59.1)
Administrative and selling 
expenses                           (15.7)               0.4            (15.3)

Operating profit                     14.8             (1.7)              13.1
Gain on sales of oil and gas 
assets                               30.4            (30.4)                 -
Net interest                        (6.5)               2.9             (3.6)

Profit on ordinary activities 
before taxation                      38.7            (29.2)               9.5
Tax on profit on ordinary 
activities                          (2.8)             (8.2)            (11.0)

Profit (loss) on ordinary 
activities after taxation            35.9            (37.4)             (1.5)


3. Turnover - by location of production

(unaudited six months to 30 June 1999)

                                     UK      Norway and      Italy      Total
                                                Denmark
                                     £m              £m         £m         £m

Oil                               167.2            65.0        4.3      236.5
Gas                                36.7             6.7        0.7       44.1
Natural gas liquids                 6.7             1.0          -        7.7

                                  210.6            72.7        5.0      288.3
Other, including tariff income      3.4             0.7        1.0        5.1

                                  214.0            73.4        6.0      293.4


(unaudited six months to 30 June 1998)

                                         UK      Norway      Italy      Total
                                         £m          £m         £m         £m

Oil                                   178.6        59.1        3.7      241.4
Gas                                    50.9         8.6        0.7       60.2
Natural gas liquids                     8.4         1.4          -        9.8

                                      237.9        69.1        4.4      311.4
Other, including tariff income          7.9         1.3        0.2        9.4

                                      245.8        70.4        4.6      320.8


(year ended 31 December 1998)

                                         UK      Norway      Italy      Total
                                         £m          £m         £m         £m

Oil                                   307.3       107.7        7.1      422.1
Gas                                    91.8        15.6        1.4      108.8
Natural gas liquids                    17.0         3.4          -       20.4

                                      416.1       126.7        8.5      551.3
Other, including tariff income          9.0         1.3        1.5       11.8

                                      425.1       128.0       10.0      563.1


4. Cost of sales

                         Six months ended  Six months ended        Year ended
                             30 June 1999      30 June 1998  31 December 1998
                              (Unaudited)       (Unaudited)        (Restated) 
                                                 (Restated)        
                                       £m                £m                £m

Operating costs                      81.8             101.8             175.3
Royalties                             8.2               9.0              15.8
Depreciation                         90.7             119.2             243.2
Research and development              0.8               0.8               2.6
                             
                                    181.5             230.8             436.9


(i) Following the implementation of FRS12 'Provisions, Contingent Liabilities
and Contingent Assets', amortisation costs in respect of provisions for
decommissioning are included within the depreciation charge for the period
(see note 1).

(ii) The depreciation charge for the six months ended 30 June 1999 includes a
credit of £7.1 million (year ended 31 December 1998, a charge of £30.7
million) arising form the application of ceiling tests to the Garden Banks 161
field in the US and the Siri field in Denmark.  There was no related taxation.

(iii) Operating costs for the six months ended 30 June 1998 and for the year
ended 31 December 1998 include a charge of £9.0 million relating to a payment
to amend a transportation agreement.  The tax charge for the year has been
reduced by £2.8 million as a consequence.


5. Operating profit (loss)

(i) Included in exploration costs charged to income in the year ended 31
December 1998 is an amount of £23.1 million in respect of the costs of an
unsuccessful drilling programme in the Middle East.  There was no related
taxation.

(ii) The charge for administrative and selling expenses for the year ended 31
December 1998 included a provision of £10.0 million relating to a
reorganisation programme announced during 1998.  The tax charge for the year
was reduced by £3.1 million as a consequence.


6. Net interest and similar items (payable) receivable

                         Six months ended  Six months ended        Year ended
                             30 June 1999      30 June 1998  31 December 1998
                              (Unaudited)       (Unaudited)        (Restated)
                                                 (Restated)        
                                       £m                £m                £m

Interest receivable and 
similar income                        8.4              19.6              38.7
Interest payable and 
similar charges                    (48.6)            (45.7)            (93.7)
Amount capitalised                   30.0              22.5              52.1
                                   (10.2)             (3.6)             (2.9)
Unwinding of discount on 
long term provisions                (2.8)             (2.9)             (5.2)
Net interest and similar items 
(payable) receivable               (13.0)             (6.5)             (8.1)


7. Taxation charge (credit)

                         Six months ended  Six months ended        Year ended
                             30 June 1999      30 June 1998  31 December 1998
                              (Unaudited)       (Unaudited)        
                                       £m                £m                £m

UK petroleum revenue tax 
                - current            16.5              14.2              31.5
                - deferred          (4.2)             (2.2)            (18.0)
UK corporation tax
                - current             0.5             (5.4)             (7.2)
                - deferred            1.8             (9.8)            (15.0)
Overseas tax principally 
Norwegian taxes - current               -                 -               0.4
                - deferred            8.0               6.0            (19.0)

                                     22.6               2.8            (27.3)


(i) UK deferred corporation tax and overseas deferred tax in the year ended 31
December 1998 include credits of £9.9 million and £17.2 million respectively
arising from revised expectations of future capital expenditure profiles.


8. Earnings per share

The calculation of basic earnings per share is based upon the profit (loss)
attributable to ordinary shareholders for the six months ended 30 June 1999 of
£31.9 (six months ended 30 June 1998: £32.6 million and year ended 31 December
1998: £(8.8) million loss) and the adjusted weighted average number of
ordinary shares outstanding during the period of 489.7 million ordinary shares
(six months ended 30 June 1998: 492.3 million and year ended 31 December 1998:
491.8 million). Profit (loss) attributable to ordinary shareholders is arrived
at by deducting preference share dividends from profit (loss) on ordinary
activities after taxation. The weighted average number of ordinary shares
outstanding excludes 8.1 million shares (six months ended 30 June 1998: 5.5
million and year ended 31 December 1998: 6.0 million) held by employee share
scheme trusts on which no dividend is payable).


9. Capital expenditure including capitalised interest

                         Six months ended  Six months ended        Year ended
                             30 June 1999      30 June 1998  31 December 1998
                              (Unaudited)       (Unaudited)        
                                       £m                £m                £m

Development expenditure:
Fields in production                 53.5              45.1              97.1
Fields under development            137.8             180.1             341.0
Fields awaiting development          11.3              25.0              56.3
                                    202.6             250.2             494.4
Exploration and appraisal            52.7              81.0             172.5
Other fixed assets                    1.3               3.5               8.0
Total, before acquisitions          256.6             334.7             674.9
Acquisitions                            -                 -               2.8
Total capital expenditure           256.6             334.7             677.7


(i) Gains on asset disposals for the six months ended 30 June 1998 and for the
year ended 31 December 1998 include £30.4 million (restated, see note 1)
arising from the sale to Intrepid North Sea Limited of the group's entire
interest in the UK Piper, Claymore, Saltire and Scapa producing fields
together with associated infrastructure, a 5.7 per cent interest in the Nelson
producing field, and certain exploration acreage.  There was no tax charge
associated with this gain.

(ii) As at 30 June 1999 interest capitalised as part of tangible fixed assets
was £220.8 million (31 December 1998 £200.9 million and 30 June 1998 £184.4
million).


10. Cash Flow Statement

(i) Reconciliation of operating profit (loss) to operating cash flow

                         Six months ended  Six months ended        Year ended
                             30 June 1999      30 June 1998  31 December 1998
                              (Unaudited)       (Unaudited)        (Restated)
                                                 (Restated) 
                                       £m                £m                £m

Operating profit (loss)              69.8              14.8            (57.0)
Depreciation charges                 93.7             123.9             253.1
Exploration costs                    27.0              59.5             142.2
Movements in stocks                   2.3             (7.4)             (4.1)
Movements in operating debtors     (26.0)              38.2              54.6
Movements in operating current 
liabilities                        (10.6)            (14.8)            (35.9)
Other deferrals and accruals 
of operating cash flows               0.1               1.9               7.3

Net cash from operations            156.3             216.1             360.2


(ii) Analysis of net debt

                                        At               At                At
                             30 June 1999      30 June 1998  31 December 1998
                              (Unaudited)       (Unaudited)
                                       £m                £m                £m

Cash at bank and in hand             54.5              50.1              36.7
Overdrafts                          (1.6)             (1.2)            (12.5)

                                     52.9              48.9              24.2
Current asset investments 
(liquid resources)                  166.4             527.7             355.3
Debt due within one year          (202.9)           (105.0)           (232.8)
Debt due after one year           (931.4)         (1,037.8)           (897.2)
Finance leases                     (20.1)            (22.5)            (19.7)

                                  (935.1)           (588.7)           (770.2)


(iii) Returns on investments and servicing of finance

                         Six months ended  Six months ended        Year ended
                             30 June 1999      30 June 1998  31 December 1998
                              (Unaudited)       (Unaudited)
                                       £m                £m                £m

Interest received                    10.1              20.2              38.8
Interest paid                      (48.0)            (41.2)            (85.2)
Interest element of finance 
lease rentals paid                  (0.1)             (1.2)             (1.1)
Preference dividends paid           (3.7)             (3.3)             (6.5)

Net cash outflow for returns on investments 
and servicing of finance           (41.7)            (25.5)            (54.0)


(iv) Taxation

                         Six months ended  Six months ended        Year ended
                             30 June 1999      30 June 1998  31 December 1998
                              (Unaudited)       (Unaudited)
                                       £m                £m                £m

UK petroleum revenue tax           (11.6)            (19.2)            (27.3)
UK corporate taxes                  (8.7)             (0.6)            (53.7)
Overseas tax                            -               6.9               6.1

Net cash outflow for tax paid      (20.3)            (12.9)            (74.9)


(v) Capital expenditure and financial investment

                         Six months ended  Six months ended        Year ended
                             30 June 1999      30 June 1998  31 December 1998
                              (Unaudited)       (Unaudited)
                                       £m                £m                £m

Capital expenditure:
- Development                     (163.8)           (203.9)           (428.9)
- Exploration and appraisal        (58.4)            (89.9)           (176.5)
- Sale of licence interests           1.9              25.4              29.8
- Purchase of licence interests     (6.6)                 -            (25.0)
- Purchase of other fixed assets    (1.3)             (3.3)             (7.9)

Net cash outflow for capital 
expenditure                       (228.2)           (271.7)           (608.5)



Independent Review Report
by KPMG Audit Plc to Enterprise Oil plc

Introduction

We have been instructed by the company to review the interim financial
information set out on pages 15 to 22 and we have read the other information
contained in the interim report and considered whether it contains any
apparent misstatements or material inconsistencies with the financial
information.

Directors' responsibilities

The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by, the directors.  The Listing
Rules of the London Stock Exchange require that the accounting policies and
presentation applied to the interim figures should be consistent with those
applied in preparing the preceding annual accounts except where they are to be
changed in the next annual accounts in which case any changes, and the reason
for them, are to be disclosed.

Review of work performed 

We conducted our review in accordance with guidance contained in Bulletin
1999/4: Review of Interim Financial Information issued by the Auditing
Practices Board.  A review consists principally of making enquiries of
management and applying analytical procedures to the financial information and
underlying financial data and, based thereon, assessing whether accounting
policies and presentation have been consistently applied, unless otherwise
disclosed.  A review is substantially less in scope than an audit performed in
accordance with Auditing Standards and therefore provides a lower level of
assurance than an audit.  Accordingly we do not express an audit opinion on
the financial information.

Review conclusion

On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 30 June 1999.

KPMG Audit Plc
Chartered Accountants

London
2 September 1999


Additional Information Under US Accounting Principles

The information regarding production and financial results reported in this
statement is prepared in accordance with the group's established reporting and
accounting policies which comply with UK accounting principles.

The following supplementary information is prepared under US accounting
principles:

                                               Six months to    Six months to
                                                30 June 1999     30 June 1998
                                                                   (restated)

Production (mboe per day)                              190.8            206.4
Approximate profit after tax (net income) (£m)          14.6             19.5
Approximate earnings per share (pence)                   2.2              3.3
Approximate shareholders' equity (£m) as at 30 June    833.6            967.1


Except for the historical information contained herein, this Interim Statement
includes forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995 that involve risks, and other risk
factors detailed from time to time in the company's publicly available
Securities and Exchange Commission reports, which could cause actual results
to be materially different.


Shareholder Information

Financial Calendar

Interim dividend payment qualifying date                    17 September 1999
Interim dividend payment date                                2 November 1999
Full year results                                            2 March 2000 
Annual General Meeting, Glaziers Hall, London               18 May 2000
Final ordinary dividend payment date                         1 June 2000
Half year results                                            6 September 2000

Stock Exchange Listings

The ordinary shares of the company of 25p each are listed on the London Stock
Exchange.  Ordinary shares and cumulative dollar preference shares of the
company are also traded on the New York Stock Exchange in the form of American
Depositary Shares and held in the form of American Depositary Receipts (ADRs).
ADR holders receive the annual and interim reports issued to shareholders as
well as a supplement to the annual report providing certain accounting
information prepared under US accounting principles.  The company has filed a
Form 20-F for the year ended 31 December 1998 with the United States
Securities and Exchange Commission.

Published Information

Further copies of the interim report as well as copies of the annual report,
the Form 20-F, the US accounting supplement to the annual report,
environmental review and the company's 1999 Key Facts may be obtained from the
Corporate Communications Department, Enterprise Oil plc, Grand Buildings,
Trafalgar Square, London WC2N 5EJ. Company information may also be viewed on
the Website address:  www.entoil.com

Shareholder Services

The company's brokers, Cazenove & Co, regulated by The Securities and Futures
Authority and a member of the London Stock Exchange, provide a simple low-cost
postal share dealing facility in Enterprise Oil plc ordinary shares.
Commission rates are 1 per cent up to £5,000 of the value of the shares bought
or sold, 0.5 per cent on the next £145,500 and 0.3 per cent for amounts
thereafter, subject to a £10 minimum charge.  Further details can be obtained
from Enterprise Oil Share Dealing Service, Cazenove & Co, 12 Tokenhouse Yard,
London  EC2R 7AN (Tel: [phone]).

National Westminster Bank Plc, regulated by the Personal Investment Authority
and IMRO, is the ISA Manager for both the NatWest Shareplan Individual Savings
Account and the NatWest Shareplan Employee Individual Savings Account into
which non-employee shareholders and shareholders holding employee shares can,
respectively, acquire and/or place their shareholdings in Enterprise Oil plc.
Please note that you cannot have both a Mini-ISA and a Maxi-ISA in the same
tax year.  For further information, contact National Westminster Bank Plc,
NatWest ISA and PEP Office at 55 Mansell Street, London E1 8AN (Tel: [phone]
5600 - 8.00am to 6.00pm).

Please remember that the value of investments, and the income from them, can
go down as well as up, and that you may not recover the amount of your
original investment. The contents of the paragraph relating to Individual
Savings Accounts has been approved by National Westminster Bank Plc for the
purposes of Section 57 of the Financial Services Act 1986.

Registrar - UK Shareholders

Lloyds TSB Registrars Scotland, 117 Dundas Street, Edinburgh, EH3 5ED
Telephone:          [phone]
Broker Helpline:    0906 559 6025

Holders of American Depositary Receipts

Citibank N.A., 111 Wall Street, New York, NY 10005 USA
Telephone:          [phone]