Seven Heads Update
15 Décembre 2003 - 8:01AM
UK Regulatory
RNS Number:2415T
Ramco Energy PLC
15 December 2003
Ramco Energy plc
("Ramco" or "the Company")
RAMCO ANNOUNCES SEVEN HEADS GAS FIELD ON STREAM
Ramco Energy plc, the Aberdeen based exploration and production company and
Operator of the Seven Heads gas development in the Celtic Sea, announces that
the Seven Heads partners have successfully brought the gas field into
production. Production commenced on Saturday, December 13th and the new
facilities are now in a short period of commissioning. Following completion of
commissioning it is planned that the initial production rates from the five
producing wells will be 60 mmscf/d.
The Seven Heads gas field is adjacent to Ireland's largest producing gas field,
the Marathon operated Kinsale field. This proximity to existing infrastructure
enabled Ramco to develop Seven Heads on a fast-track basis via a sub-sea
pipeline tied back to the Kinsale facilities. The Seven Heads development has
achieved production in just nine months from development approval.
It is expected that the Seven Heads field will contribute approximately 10-15%
of the Irish demand for gas in 2004, displacing imports from the UK. Ramco has
agreed to sell its share of the field's gas production to Innogy Ireland
Limited, and will receive a price in excess of the UK national balancing point
price.
The field's proved and probable reserves have been independently assessed by
Exploration Consultants Limited at 390 bcf (Ramco's share: 337 bcf or 59 million
boe). Ramco has already acquired interests in several other blocks in the Celtic
Sea and is planning a seismic work programme for 2004 to assess the potential
for the future development of satellite structures, capable of being tied back
to the existing infrastructure.
Ramco today, also announces that it has further added to its Celtic Sea acreage
with the award of Licensing Option 03/10 "East Kinsale".
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%.
Daniel F Stover, Ramco's Chief Operating Officer said:
"The Seven Heads development is important both for Ramco and for Ireland.
Bringing the field into production in such a short time frame has been a
significant achievement and we are grateful for the hard work of all of those
involved in the project. Looking forward, we are already turning our attention
to identifying possible satellite opportunities as a part of our strategy to
develop a major Celtic Sea gas operation to help meet growing Irish gas demand."
John Browne T.D. Minister of State at the Department of Communication, Marine
and Natural Resources said:
"The coming on stream of this gas field will bring significant benefits to the
Irish economy, specifically as another source of indigenous natural gas and the
added value that accrues from the downstream use of such gas."
"This first flow of gas also sends out a strong signal to exploration companies
around the world that the Irish offshore sector offers opportunities."
15 December 2003
ENQUIRIES:
Ramco Energy - Aberdeen
Steven Bertram, Group Financial Director 01224 352 200
Fleishman-Hillard Saunders - Dublin
Michael Parker 00353 1 618 8450
College Hill - London
Phil Wilson-Brown 020 7457 2020
Notes for Editors
The Irish authorities have granted Ramco a 100% interest in the "East Kinsale"
Licensing Option 03/10. The Option covers part blocks 49/17, 49/18, & 49/23
which lie to the east of the Marathon's Kinsale gas field and south east of the
Midleton Licensing Option 03/02, awarded to Ramco earlier this year.
The East Kinsale Option blocks lie in water depths of around 100m, and are 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. The Licensing
Option is for an initial period of two years. 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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCIIFSRFALELIV