Ramco raise 13m to widen gas search

RAMCO, the developers of the Seven Heads gas field off the Cork coast who expect to bring 60 million cubic feet of gas ashore a day from November, have raised 13m to search for more gas in the area.

The Aberdeen-based independent exploration and production company yesterday disclosed it raised 13m through an institutional placing of 2,620,000 new ordinary shares of 10p each at a price of stg£3.50 per share.

The shares traded at £3.77 yesterday on the LSE’s AIM.

The company also intends to explore the possibility of bringing ashore “waxy oil” deposits found in the area as far back as 1974 by Esso.

The money will also be used to evaluate prospects in the Rosscarbery (previously Galley Head) and Midleton blocks adjacent to the existing Seven Heads gas lease.

Ramco said that through its 20m development of the Seven Heads gas field, it has built a strong knowledge of the regional geology.

This has enabled it to identify a number of satellite structures capable of adding to its proven and probable reserves base in the region.

“Ramco has proven and probable reserves of 337 billion cubic feet, or 59 million barrels, of oil equivalent in Seven Heads,” the company said.

In a statement, Ramco said the additional capital raised would provide Ramco with the ability to move quickly to evaluate these satellite opportunities, acquiring seismic and completing other technical work on its Celtic Sea acreage next year.

And Ramco expects to have the Seven Heads gas field on stream during the course of November and is expecting, after a short commissioning period, initial production rates from the field of 60 million standard cubic feet of gas per day.

“While this is in line with the original fasttrack schedule for the development of Seven Heads, it is slightly later than had been anticipated due to delays on the Topsides modifications to the Kinsale ‘A’ platform,” the company said.

Yesterday, the Minister of State at the Department of Communications, Marine and Natural Resources, John Browne, approved revised terms for the ‘licensing option’ authorisation for oil and gas exploration off Ireland.

Mr Browne said the objectives were to rejuvenate exploration in the Celtic Sea to make the licensing option a more attractive measure for promoting exploration activity.