RNS Number:3846Q
Ramco Energy PLC
01 October 2003


Press Information



1 October 2003


RAMCO ADDS NEW CELTIC SEA ACREAGE AND RAISES #9.2 MILLION THROUGH INSTITUTIONAL
                                    PLACING


Institutional Placing


Ramco Energy plc (Ramco), the Aberdeen based independent exploration and
production company, today announces it has raised #9.2 million through an
institutional placing of 2,620,000 new ordinary shares of 10p each, at a price
of 350 pence per share. An application has been made to AIM for the new ordinary
shares to be admitted and it is expected that trading will commence on 2nd
October 2003.


The placing was undertaken on behalf of the company by Canaccord Capital
(Europe) Limited.


The additional capital raised will strengthen the Group's balance sheet and
provide it with an alternative to the mezzanine finance available for the Seven
Heads project.In addition, the funds will be used to evaluate Ramco's Celtic Sea 
acreage offshore Ireland near its Seven Heads gas development, including two new
Licensing Options recently granted to Ramco's wholly owned subsidiary Ramco Oil
& Gas Limited.


New Licensing Options


The two new Licensing Options, 03/6 (Rosscarbery - Ramco 77%) and 03/5 (Seven
Heads Oil - Ramco 74%) together with Midleton (Ramco 100%) awarded in April
2003, form part of Ramco's strategy of building on its position in the Celtic
Sea. Rosscarbery includes the area previously called Galley Head as well as the
acreage between the Galley Head area and the Seven Heads Gas Lease. Through the
development of the Seven Heads gas field, Ramco (86.5%) has built a strong
knowledge of the regional geology, which has enabled it to identify a number of
satellite structures capable of adding to its proven and probable reserves base
in the region.    Ramco has proven and probable reserves of 337 bcf or 59
million barrels of oil equivalent in Seven Heads.


The additional capital raised today will provide Ramco with the ability to move
quickly to evaluate these satellite opportunities, acquiring seismic and
completing other technical work on its Celtic Sea acreage next year. The
possibility of satellite developments was considered at an early stage of the
Seven Heads development and the sub-sea infrastructure installed this year has
been designed to accommodate such satellite developments.


Seven Heads Progress


Ramco expects to have the Seven Heads gas field on stream during the course of
November and is expecting, after a short commissioning period, initial
production rates from the field of 60 million standard cubic feet of gas per
day. While this is in line with the original fast track schedule for the
development of Seven Heads, it is slightly later than had been anticipated due
to delays on the Topsides modifications to the Kinsale "A" platform.



Dr. Steve Boldy, Ramco's Vice President Ireland said,


"The acquisition of new Licensing Options is central to our strategy of building
a material business in the Celtic Sea. The Rosscarbery acreage, along with the
Midleton area awarded earlier this year, provides us with an excellent inventory
of opportunities to allow us to build on the subsurface understanding gained
from the Seven Heads gas development. The shallow water depths, shallow
reservoir targets and proximity to existing infrastructure allow low cost
exploration and rapid progression from project sanction to production as we have
seen with the Seven Heads gas development."


ENQUIRIES:


Ramco

Steven Bertram, Group Financial Director:                      01224 352 200
College Hill

Phil Wilson-Brown/James Henderson:                             020 7457 2020



Notes for Editors


The Irish authorities have granted Ramco an interest in the following Licensing
Options close to the Seven Heads gas development.


Licensing Option 03/6 (Rosscarbery)


This Licensing Option covers part blocks 48/17, 48/18, 48/19, 48/22, 48/23 & 48/
24 and lies immediately to the north of the Seven Heads gas development. It
covers the area originally called Galley Head as well as the acreage between the
old Galley Head area and the Seven Heads Gas Lease.


The Rosscarbery Option blocks lie in water depths of around 100m, as at Seven
Heads, and well within sub-sea tie-back range to the existing facilities,
allowing even modest reserves to be commercially developed.


Ramco's prime focus in this acreage will be for gas from both the Greensand ('A'
Sand) and Upper Wealden ('B' Sand) Lower Cretaceous reservoirs. Rosscarbery
contains a number of exploration opportunities as well as the Galley Head and
Carrigaline gas discoveries. The Licensing Option is for an initial period of
one year.

The work programme next year is likely to involve seismic and geological studies
aimed at prioritising the prospect inventory and engineering studies to optimise
potential tie-back options to existing infrastructure.


The partnership for Licensing Option 03/6 comprises:


Ramco Oil & Gas Limited (Operator) 77%

Island Petroleum Developments Limited/DNO International 22%

Sunningdale Oils (Ireland) Limited 1%


Licensing Option 03/5 (Seven Heads Oil)


This Licensing Option covers part blocks 48/22, 48/23, 48/24, 48/27, 48/28, 48/
29 & 48/30, the same area as the Seven Heads Gas Lease, but relates to oil
discoveries in the deeper Lower Cretaceous section, below the gas field.


Oil was initially discovery on this block by well 48/28-1 drilled by Esso in
1974 and tested 40 degree API oil at rates of 1,527 barrels of oil per day
(bopd). A later appraisal well, 48/24-3, was drilled by Marathon in 1990 and
tested 45 degree API oil at 1,619 bopd. The Licensing Option is for an initial
period of one year.


Whilst acknowledging that the earlier drilling has proved substantial volumes of
oil in place, Ramco recognises that the waxy nature of the oil and the fact that
it is spread over a large area in thin sands means that it is not certain that
it will be commercial to produce. Consequently, the initial work programme is
likely to focus on re-mapping the oil accumulations, utilising the new data
acquired from drilling the Seven Heads gas development wells. Geological studies
are planned to better understand the reservoir distribution, as are engineering
studies to address the optimum development scenario for producing the light, but
waxy, oil.


The partnership for Licensing Option 03/5 comprises:


Ramco Oil & Gas Limited (Operator) 74%

Island Petroleum Developments Limited/DNO International 25%

Sunningdale Oils (Ireland) Limited 1%


Outline of the Irish Licensing Regime

Petroleum Prospecting Licence
Non-Exclusive licence to explore anywhere in the Irish Continental Shelf that is
not the subject of any other licence.  Practically this entitles a company to
undertake seismic surveys.
Licensing Option
Gives the holder an exclusive right to apply for an Exploration Licence
a) for a defined period
b) in return for undertaking an agreed work programme.
Exploration Licence
A "Standard" licence covers an agreed work programme in water less than 200m.
The work programme usually includes an exploration well.  The licence period is
6 years.
A "Deepwater Exploration" licence covers an agreed work programme in water
deeper than 200m.  The work programme usually includes an exploration well.  The
licence period is 12 years.
A "Frontier" licence covers an agreed work programme in areas where the Minister
has declared the area to be a "Frontier" area.  The work programme usually
includes an exploration well, but the licence period is generally longer than
other licences (minimum 15 years).
Lease Undertaking
Gives the holder an exclusive right to apply for an Petroleum Lease
a) for a defined period
b) in return for undertaking an agreed work programme.
Petroleum Lease
Gives the holder an exclusive right to produce hydrocarbons for an agreed
period.



Fuller details available from the Department of Communication Marine and Natural
Resources publication "Licensing Terms for Offshore Oil and Gas Exploration and
Development 1992".







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