Review of Ramco’s troubled gas field

TECHNICAL evaluations of the troubled Ramco-owned Seven Heads gas field off the Cork coast are not expected to result in an upgrade to its value, it emerged yesterday.

Ramco Energy, yesterday issued a pre-AGM statement, which said the technical review of the gas field is nearing completion and will shortly be ready for presentation to partners, banks and the Petroleum Affairs Division in Ireland.

“After discussion with these parties Ramco expects to make an announcement summarising the findings of the review and detailing the agreed future plans for the field. Ramco anticipates it will not be in a position to publish any new information on the field before the end of August 2004,” the company said.

“The outcome of the technical review is not expected to increase the carrying value of the group’s interest in the field,” said Ramco.

Ramco said discussions with the group’s bankers, as well as third parties interested in participation in the project, are continuing but will not reach a conclusion until the technical review has been completed and future plans have been agreed.

Ramco founder and main shareholder Steve Remp is currently recovering from recent surgery to remove a cancerous tumour.

Senior non-executive director Peter Everett will chair the meeting next week in Mr Remp’s absence. Ramco expects Mr Remp to return to work during October.

Water infiltration of the Seven Head’s sea floor gas production facilities continues to be constrain gas flow as work allow optimisation of the back up transportation facilities and to enhance data acquisition, which remains a priority, the company said.

The average daily production from the field during July was 20.3.