PRESS RELEASE
25 MARCH 2004
RAMCO SEVEN HEADS UPDATE
Ramco Energy plc, the Aberdeen based exploration and production company and Operator of the Seven Heads gas field in the Celtic Sea, announces an update for the field. The well performance diagnostic programme outlined in our release of March 3rd has been successfully completed. The field returned to production on March 17th following three days when it was shut in to enable the programme to be carried out.
The pipeline depressurisation or "blow-down" process confirmed there had been a measurable build-up of water in four of the five wells with a maximum column of 190 ft of water in one well bore. Our technical team believe the process successfully removed most of that water from the wells enabling more accurate reservoir pressures to be obtained.
The wellhead pressures and production rates of the wells affected by water build-up showed a temporary improvement following the diagnostic programme. Over the 5 days prior to the programme the average field production was 35.8 mmscf/d and immediately following completion of the programme the field averaged 40.2 mmscf/d over the 5 days to March 22nd. Since then the field production rate has returned to levels observed before the process commenced.
The data acquired during the test programme suggests that each well is connected to a lower volume of reserves than had been expected and that the dual permeability system is making only a limited contribution to production. The acquired data together with production data to be collected over the next several months will be used to reassess the fieldÕs future deliverability and recoverable reserves. Our understanding of what is a significantly more complex reservoir than we had thought now requires a fundamental reappraisal. Ramco will be postponing its preliminary announcement for the year ended December 2003, until early May, to allow an initial reassessment of reserves to be completed.
The technical team are considering the costs and benefits of gaining access to compression facilities on the Kinsale platform which could be adapted to facilitate Seven Heads gas production. The Transportation, Processing, and Operational Services Agreement, signed with Marathon in April 2003, provides that the Seven Heads partners share the operating costs of MarathonÕs Kinsale facilities pro rata, on a throughput basis.
The Seven Heads partners are Ramco (Operator) 86.5%, Island Petroleum Developments Limited 12.5% and Sunningdale Oils (Ireland) Limited 1.0%.
ENQUIRIES:
Ramco Energy - Aberdeen
Stephen Remp, Executive Chairman Tel: 01224 352200
Steven Bertram, Group Financial Director Tel: 01224 352 200
College Hill - London
James Henderson Tel: 0207 457 2020
Fleishman - Hilllard Saunders - Dublin
Michael Parker Tel: 00353 1 618 8450
Ramco Energy plc
62 Queen's Road
Aberdeen
AB15 4YE
United Kingdom
Tel: +44 1224 352 200
Fax: +44 1224 352 211