Seven Heads operational but Ramco postpones preliminary results

Ramco Energy plc has announced that its Seven Heads gas field in the Celtic Sea returned to production on March 17 after being shut for three days during testing.

However, the Aberdeen-based exploration and production company will be postponing its preliminary announcement for the year ended December 2003, until early May this year.

This is to allow an initial reassessment of reserves to be completed.

The data acquired during the test programme suggests that each well is connected to a lower volume of reserves than had been expected.

Ramco now believes that the operation's dual permeability system is making only a limited contribution to production.

This data, and the production data to be collected over the next several months, will be used to reassess the field's future deliverability and recoverable reserves.

Ramco confirmed there had been a measurable build-up of water in four of the five wells with a maximum column of 190ft of water in one well bore.

Its technical team believe the "shut in" process successfully removed most of that water from the wells enabling more accurate reservoir pressures to be obtained.

Field production rates has now returned to levels observed before testing, the company said today.

The field averaged 40.2 mmscf/d over the five days to March 22.

The Seven Heads partners are Ramco (Operator) 86.5%, Island Petroleum Developments Limited 12.5% and Sunningdale Oils (Ireland) Limited 1.0%.