PRESS RELEASE
6 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.
Technical Review
The technical review of the gas field is nearing completion and will shortly be ready for presentation to partners, banks and the Petroleum Affairs Division in Ireland. After discussion with these parties Ramco expects to make an announcement summarising the findings of the review and detailing the agreed future plans for the field. Ramco anticipates it will not be in a position to publish any new information on the field before the end of August 2004.
Current Production and Trading
Field production continues to be constrained to allow optimisation of the back up transportation facilities and to enhance data acquisition, which remains a priority. The average daily production from the field during July was 20.3 mmscf/d.
As confirmed in previous announcements, gas sales nominations under the Gas Sales Agreement can be reset from October 1st 2004.
Banking
Discussions with the Group's bankers as well as third parties interested in participation in the project are continuing but will not reach a conclusion until the technical review has been completed and future plans have been agreed.
Impairment Provision
The impairment provision announced previously and reflected in Ramco's 2003 results effectively wrote off the Group's interest in the field, reducing its carrying value to the same level as the non-recourse finance associated with the development, i.e. £56.6m. The outcome of the technical review is not expected to increase the carrying value of the Group's interest in the field.
AGM
Peter Everett, Senior Non-Executive Director will chair the AGM next week as Steve Remp, Ramco's Executive Chairman, is currently recovering from recent surgery to remove a cancerous tumour. Ramco has been advised that the surgeon completed fully curative surgery. At this time Ramco expects Mr Remp to return to work during October. During his absence Mr Everett is acting Chairman and Daniel Stover, Chief Operating Officer, is acting Chief Executive Officer.
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