BRITOIL SEES LOWER U.K. EXPLORATION EXPENDITURE Britoil Plc's <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.