Award of Exploration Licence

31 Jan 2005 07:30

Ramco Energy PLC31 January 2005 31st January 2005 RAMCO AND PARTNERS GRANTED FRONTIER EXPLORATION LICENCE OFFSHORE DONEGAL, IRELAND Ramco Energy plc (Ramco), the Aberdeen-based exploration and production companyannounces that its wholly owned subsidiary, Ramco Donegal Limited (RDL) and itspartners have been granted a frontier exploration licence (1/05) over 408 sq km(101,000 acres) around 70 kms from the north western coast of Ireland. Thelicence covers Block 13/7 and part blocks 13/11 and 13/12. Ramco, Sunningdale Donegal Basin Limited (Sunningdale) and Lundin ExplorationB.V. (Lundin) had previously held, through respective affiliates, a licensingoption (00/02) over this area and have already completed an extensive technicalevaluation programme which has identified a number of drillable targets. Thelargest of these, Inishbeg, is a four-way dip-closed anticlinal structure andlies in a water depth of approximately 320ft. Island Oil and Gas plc (Island) and Petroceltic International plc (PIP) haveagreed to farm in to the exploration licence by carrying dry hole and testingcosts of an exploration well for RDL and Sunningdale. Farm in agreements havebeen signed, and a Joint Operating Agreement is currently being drafted,reflecting interests in the licence as follows: RDL 19.25% (carried through anexploration well), Lundin (Operator) 35%, Island Assets Porcupine Limited (awholly owned subsidiary of Island) 26%, Lerida Trading Limited (a wholly ownedsubsidiary of PIP) 16.25%, Sunningdale 3.5% (carried through an explorationwell). Under the terms of the frontier exploration licence, which runs for 15 years, itis planned that an exploration well will be drilled during 2005, targeting theTriassic Sherwood Sandstone reservoir in the Inishbeg prospect. The SherwoodSandstone is the productive reservoir in the Corrib Gas Field, which lies ontrend to the southwest, and is currently under development. ENQUIRIES: Ramco Energy plc - AberdeenSteven Bertram, Group Financial Director 01224 352200 College Hill - LondonBen Brewerton 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