PRESS RELEASE
28 JANUARY 2004
RAMCO SEVEN HEADS PRODUCTION UPDATE
Ramco Energy plc, the Aberdeen based exploration and production company and Operator of the Seven Heads gas field in the Celtic Sea, announces a production update for the field, which commenced production on December 13th 2003.
The Seven Heads gas field is adjacent to Irelandês largest producing gas field, the Marathon operated Kinsale field. Seven Heads gas is being produced from five sub-sea wells via a pipeline tied back to the Kinsale facilities.
Gas production from the Seven Heads field has averaged 61mmscf/d over the 45 days since production commenced; this includes a short period of commissioning. Daily production peaked at 76 mmscf/d on December 29th 2003.
A decline in flowing wellhead pressures was expected once production had commenced, but the pressure declines observed to date have been greater than anticipated. There are a number of possible explanations for the drop in pressure and plans are being implemented to acquire additional information to assist in diagnosis and identification of solutions. Initial indications, from water samples recovered at the platform, suggest that the field is producing a small amount of formation water which is building up in the well bores making it more difficult to produce the gas.
The impact of recent cold weather on the gas production system pressures has exacerbated our declining flowing pressures and as a result the Seven Heads partners were unable to produce their full nominations for gas supply on January 27th. The Seven Heads partners have available backup arrangements, which rely on importing gas from Scotland through the interconnector to Ireland, to meet any shortfall.
The Seven Heads partners are Ramco (Operator) 86.5%, Island Petroleum Developments Limited (a subsidiary of DNO ASA) 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