Seascape Energy Regulatory News (SEA)

20 Jun 2005 07:00

Ramco Energy PLC20 June 2005 Press Information 20th June 2005 RAMCO REACHES AGREEMENT WITH LENDERS OVER LOAN WAIVERS AND RAISES £1 MILLION THROUGH AN INSTITUTIONAL PLACING Ramco Energy plc (Ramco), the Aberdeen based independent exploration andproduction company, announces that it has concluded extended waiver agreementswith both its Bankers and a major creditor. Under the terms of the agreement with its Bankers, Ernst and Young (EY) havebeen appointed to work with Ramco to find a buyer for its 86.5% interest in theSeven Heads Gas field located in the Celtic Sea off the south coast of Ireland. EY will also assist Ramco in identifying potential buyers for other assets whichmay include parts of its profitable Oil Services business. This would allowRamco to repay the £12 million recourse tranche of its Seven Heads borrowings. A total of 3,000,000 warrants will be granted to the Company's Bankers with anexercise price of 34p per share, the warrants will be exercisable until 30 June2010. In a similar arrangement with a major creditor a £1.55 million debt will also bedeferred until asset sales have been successfully concluded. Ramco also announces that it has raised £1 million, after expenses, through aninstitutional placing of 3,000,000 new ordinary shares of 10p each, at a priceof 34p per share. An application has been made to AIM for the new ordinaryshares to be admitted and it is expected that trading will commence on 23 June2005. This placing will provide the Group with additional working capital. Steve Remp, Ramco's Executive Chairman said "The agreements with our lenderscreate the framework for Ramco to move forward again. We will be working closelywith the Banks and Ernst & Young to identify a third party which is in aposition to realise the future potential of the Seven Heads Gas Field. Withthese agreements in place we are already focussing our attention on the futureand looking to re-build value through our portfolio of exploration prospects inIreland, Bulgaria and Montenegro." Ramco -AberdeenSteven Bertram - Group Financial Director 01224 352 200 College Hill - LondonNick Elwes 020 7457 2020 Fleishman-Hillard Saunders - DublinMichael Parker 00353 1 618 8450 This information is provided by RNS The company news service from the London Stock Exchange