RNS Number:9029O
Ramco Energy PLC
21 August 2003


Ramco Energy plc

21 August 2003


   RAMCO ANNOUNCES A PRELIMINARY RESERVES UPGRADE, GAS SALES NOMINATION, AND
      COMPLETION OF THE DRILLING PROGRAMME ON THE SEVEN HEADS GAS FIELD

Ramco Energy plc, the Aberdeen based exploration and production company and
Operator of the Seven Heads gas development in the Celtic Sea, announces a
preliminary upgrade to the proven and probable reserves in the Seven Heads
field; confirmation of gas sales nominations for the first year of production;
and the completion of the drilling programme on the field.

Preliminary Reserves Upgrade

Having completed the drilling programme on the Seven Heads field, Ramco has
prepared an interim assessment of the impact of the results on the proven and 
probable reserves estimates for the Seven Heads field.  Gas Initially In Place 
(GIIP) has increased substantially, and actual well productivity data has 
enabled a more accurate prediction of recoverable reserves.  The following 
preliminary estimates have been made:-

         Reserves               2002              2003                  2003                     2003
                           Full Field bcf    Full Field bcf      Ramco (86.5%) bcf        Ramco million  boe
Proven and probable GIIP         552            700 - 800            605 - 692                 101 -115
   Proven and probable           304            375 - 425            324 - 367                  54 -61
  recoverable reserves

The 2002 reserves estimates were prepared by Exploration Consultants Limited
(ECL), Ramco's independent reserves auditors, and formed the basis of the Seven
Heads Plan of Development. The preliminary 2003 reserves estimates have been
prepared by Ramco based on the well results from this year's drilling programme.
ECL has been commissioned to formally review the proven and probable reserves in
the Seven Heads field, and Ramco expects to be able to announce these results in
September 2003.

Gas Sales Nomination Confirmed

All the Seven Heads field partners have independently sold their gas to Innogy
Ireland Limited (Innogy).

Having concluded their separate negotiations with Innogy, the field partners
have now jointly nominated gas production for the first contract year (1st
October 2003 - 30th September 2004) at a gross field rate of 60 million standard
cubic feet per day.

The individual company nominations are in proportion to their equity holdings -
which are Ramco (Operator) 86.5%, Island Petroleum Developments Limited 12.5%
and Sunningdale Oils (Ireland) Limited 1.0%.

Drilling Programme Completed

The Seven Heads development drilling programme has now been completed, and the
rig "Sedco 704" will shortly be returning to Invergordon.

The following table summarises all the well results:-


    Well         Depth        Maximum flow rate      Flowing wellhead    Normalised flow rate mmscf/d (at 565
                                   mmscf/d             pressure psia             psia for comparison)

  48/24-5A      4275 ft             14.0                    529                          13.9
   48/24-6      4260 ft             34.3                    565                          34.3
  48/24-7A      3626 ft             23.7                    315                          16.7
   48/24-8      4150 ft             27.9                    464                          25.2
   48/24-9      3655 ft             19.3                    365                          12.5
   48/23-2      3613 ft                           Well not tested
                                                         Total flow rate                 102.6

The sixth and final well (48/23-2), is the furthest west of the wells, some four
kilometres from the nearest well.  It was drilled to test upside potential on
the western limits of the Seven Heads structure. The well was drilled to a depth
of 3613 ft, but was not tested as there were insufficient hydrocarbon
indications to justify completion.  Technical data indicates the presence of a
previously unknown fault near the well, suggesting that this area is isolated
from the main area of the field.   The well has been plugged and abandoned.

The extensive data from this well will provide valuable information to the Seven
Heads partners as they undertake further technical studies over the next year to
assess the potential of the unexplored south western extension of the Seven
Heads field.

Steve Remp, Ramco's Executive Chairman said: "The Seven Heads development is a
major project both for Ramco and Ireland. We are delighted with the increase in
recoverable reserves of up to 40% and very pleased with the excellent progress
made since receiving formal approval for the development just five months ago."


ENQUIRIES:

Ramco Energy - Aberdeen
Steven Bertram - Group Financial Director                01224 352 200

Fleishman-Hillard Saunders - Dublin
Michael Parker                                           00353 1 618 8450

College Hill - London
Phil Wilson-Brown                                        020 7457 2020



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