PRESS RELEASE

31 JANUARY 2005

RAMCO AND PARTNERS GRANTED FRONTIER EXPLORATION LICENSE OFFSHORE DONEGAL, IRELAND

Ramco Energy plc (Ramco), the Aberdeen-based exploration and production company announces that its wholly owned subsidiary, Ramco Donegal Limited (RDL) and its partners 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. The licence covers Block 13/7 and part blocks 13/11 and 13/12.

Ramco, Sunningdale Donegal Basin Limited (Sunningdale) and Lundin Exploration B.V. (Lundin) had previously held, through respective affiliates, a licensing option (00/02) over this area and have already completed an extensive technical evaluation programme which has identified a number of drillable targets. The largest of these, Inishbeg, is a four-way dip-closed anticlinal structure and lies in a water depth of approximately 320ft.

Island Oil and Gas plc (Island) and Petroceltic International plc (PIP) have agreed to farm in to the exploration licence by carrying dry hole and testing costs of an exploration well for RDL and Sunningdale. Farm in agreements have been signed, and a Joint Operating Agreement is currently being drafted, reflecting interests in the licence as follows: RDL 19.25% (carried through an exploration well), Lundin (Operator) 35%, Island Assets Porcupine Limited (a wholly owned subsidiary of Island) 26%, Lerida Trading Limited (a wholly owned subsidiary of PIP) 16.25%, Sunningdale 3.5% (carried through an exploration well).

Under the terms of the frontier exploration licence, which runs for 15 years, it is planned that an exploration well will be drilled during 2005, targeting the Triassic Sherwood Sandstone reservoir in the Inishbeg prospect. The Sherwood Sandstone is the productive reservoir in the Corrib Gas Field, which lies on trend to the southwest, and is currently under development.

 

 

ENQUIRIES:

Ramco Energy - Aberdeen
Steven Bertram, Group Financial Director Tel: 01224 352 200

College Hill - London
Ben Brewerton Tel: 020 7457 2020

Fleishman - Hilllard Saunders - Dublin
Michael Parker Tel: 00353 1 618 8450

 

Ramco Energy plc
62 Queen's Road
Aberdeen
AB15 4YE
United Kingdom
Tel: +44 1224 352 200
Fax: +44 1224 352 211