PRESS RELEASE

31 AUGUST 2004

RAMCO SEVEN HEADS UPDATE

Ramco Energy plc (Ramco), the Aberdeen based exploration and production company, announces an update for the Seven Heads Gas Field in the Celtic Sea. Ramco Seven Heads Limited (RSHL), a wholly owned subsidiary of Ramco, is Operator of the gas field.

The technical review of the gas field has been completed and will shortly be circulated to partners, banks and the Irish authorities for their review. Ramco continues to discuss its financing arrangements with its bankers who have provided an extension to the existing waiver to allow the completion of the review process and to enable their discussions to be concluded.

The Seven Heads partners are RSHL (Operator) 82.5%, Northern Exploration Limited (a wholly owned subsidiary of Ramco) 4%, Lundin Ireland Limited 12.5% and Sunningdale Oils (Ireland) Limited 1.0%.

ENQUIRIES:

Ramco Energy - Aberdeen
Steven Bertram, Group Financial Director Tel: 01224 352 200

College Hill - London
Nick Elwes Tel: 020 7457 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