Ramco says review of Seven Heads will take weeks

Aberdeen-based exploration company Ramco Energy has said it has undertaken a technical review of the Seven Heads gas field in the Celtic Sea to investigate previously announced pressure declines from the field, which have been greater than expected.

Aberdeen-based exploration company Ramco Energy has said it has undertaken a technical review of the Seven Heads gas field in the Celtic Sea to investigate previously announced pressure declines from the field, which have been greater than expected.

The company has said that data monitoring for at least a number of weeks will be required before the company can say what the longer term performance of the field will be.

Over the period from January 28 to February 5, excluding February 3 when production was deliberately interrupted to assist the ongoing technical work, gas production from the Seven Heads field averaged 54.5 mmscf/d. This production level is slightly short of that required to meet Ramco's obligations under its Gas Sales Agreement (GSA).

Ramco has covered its average shortfall over this period, of 2.7 mmscf/d, by purchasing gas in the UK and transporting it to Ireland.

The current GSA volumes apply until the end of September 2004, after which Ramco can adjust nominations for the next gas year, to match the field's expected performance.

Shares in Ramco have fallen a further 7.5% on the London stock exchange today, after losing more than two thirds of their value since the pressure declines from the field were announced last week.

The Seven Heads partners are Ramco (86.5%), Island Petroleum developments (12.5%) and Sunningdale Oils Ireland (1%).

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