Ramco 'back in profit by mid-2004'

RAMCO ENERGY, the developers of the Seven Heads gas field, expect to report healthy profits by mid-2004.

Yesterday, Ramco reported, in line with expectations, a loss after tax of £1.4 million for the first six months of the year (H1 2002: £2.8 million).

However, chief operating officer Daniel F Stover said that once revenues from gas production from the Seven Heads field kick in, the company will be in profit by the time Ramco delivers its 2004 six-month interims.

"It is too early to say, but it will be touch and go as to whether we will be in profit by the end of 2003," he added.

Company founder and executive chairman Steve Remp said the first half of 2003 has been an excellent period. "Our drilling programme for Seven Heads was highly successful, enabling us to significantly increase proven and probable reserves. In addition, we have worked quickly to complete the necessary field infrastructure and are on track to commence production early in the fourth quarter of this year.

"Bringing Seven Heads on stream will continue to be our focus during the remainder of the year."

It plans to build on its €20m production investment at Seven Heads and its next area of exploration will be in the south-west of the current development.