Offshore Montenegro

15 Feb 2005 11:00

Ramco Energy PLC15 February 2005 February 15th 2005 RAMCO AND HELLENIC RESTRUCTURE RELATIONSHIP OFFSHORE MONTENEGRO Ramco Energy plc (Ramco), the Aberdeen based independent exploration andproduction company, announces that its wholly owned subsidiaries Medusa(Montenegro) Limited and Medusa Oil & Gas Limited have reached agreement torestructure their exploration interests in the Adriatic Sea offshore Montenegro. In the restructuring agreement with Hellenic Petroleum SA (Hellenic) of Greece,Ramco has agreed to exchange its interests in all three blocks for an option torejoin the acreage after the first exploration well has been drilled. Ramco through its subsidiaries holds a 40% interest in all three blocks offshoreMontenegro and has undertaken certain obligations to fund an exploration welland other technical work. These obligations will be undertaken by Hellenic, and the related Ramcoperformance bond will be released, following the completion of negotiations withthe Government of Montenegro and completion of other legal formalities requiredto transfer the interests in the blocks. Following the drilling of an exploration well on the acreage Ramco will have 120days to elect to rejoin the acreage for an interest of up to 15% in all of theblocks. Ramco's past costs in Montenegro will be taken into consideration in thecalculation of the exercise price for the interest in the event that it electsto exercise the option. ENQUIRIES: RamcoSteven Bertram - Group Financial Director 01224 352 200 College HillNick 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