The number of Britons still "at risk" in the hostage situation in Algeria is "now significantly reduced" from the previous estimate of 30, Prime Minister David Cameron has said.
One Briton was killed when militants targeted a desert gas facility, but the fate of others remains unclear.
Mr Cameron said Algerian forces which had attempted a rescue were still "pursuing terrorists" at the site.
But he could not give any further details during the "ongoing" operation.
Mr Cameron, updating MPs on the situation after chairing a meeting of the government's emergency response committee, Cobra, expressed "disgust and condemnation" at the "brutal and savage attack".
He described the attack as "large, well co-ordinated and heavily armed" and appeared to be planned.
As the situation was still ongoing, he said he could not give details of the exact numbers of Britons affected.
BP, which owns part of the facility, said there was "a small number" of its employees "whose current location and situation remain uncertain".
Civilian aircraft were on stand-by to help with the company's evacuation plan "if needed", Mr Cameron said.
End Quote David Cameron Prime MinisterIt is the terrorists who are responsible for this attack and for the loss of life. "
Algerian troops had attempted to free the hostages on Thursday by storming the residential compound where most were thought to be.
'Remote site'The state-run APS news agency cited local officials as saying two Britons and two Filipinos were killed in the military operation, after two other people - a Briton and an Algerian - died on Wednesday when the militants ambushed a bus that was taking workers to the local airport.
Mr Cameron said he was not told in advance about Thursday's operation despite asking to be notified before any further action was taken.
The PM said the site was "one of the most remote places in the world" which meant it was difficult to get a full picture of what was happening.
Foreign nationals from at least seven other countries are involved, but precise numbers are not clear.
"Last night the number of British citizens at risk was less than 30. Thankfully we now know that number has now been quite significantly reduced," Mr Cameron said.
"During an ongoing operation I cannot say more on this at this stage."
UK assistanceAbout Thursday's action, Algerian Prime Minister Abdelmalek Sellal had told Mr Cameron that the "terrorists had tried to flee, that they judged there to be an immediate threat to the lives of the hostages and had felt obliged to respond."
"When I spoke again to the Algerian prime minister later last night he told me that this first operation was complete but this is a large and complex site and they are still pursuing terrorists and possibly some of the hostages in other areas of the site," Mr Cameron said.
When the initial attack happened, Mr Cameron said the Algerians were offered British "technical and intelligence support", including hostage negotiation and rescue teams. This was declined.
He added: "We need to be absolutely clear whose fault this is. It is the terrorists who are responsible for this attack and for the loss of life. The actions of these extremists can never be justified."
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