does anyone know why ramco has all of a sudden taken off today ....i cant find any news out but all of a sudden up nearly 11

do you think it will be good new, (i hope) and have you read something someplace or is it just to buy s or just that gut feeling

Can anyone eplain to me about the spread on ramco. or whay on some shares its 1p and then others its up 5p and its nothing to do with the price of the shares Thanks

On this stock I think the market is braced for truly dreadful news and has already factored this into the price..4 weeks ago there was a view that this one could be ready to go belly up...if it's merely awful news or better still bad news then that's upside. From the very little I have gleaned (and this may not be reliable) they have a pretty solid survival plan to communicate, based on tight cost control and the farming out of their Irish Sea oil exploration rights (but retaining a share of future production revenues). They have got a partner to undertake 100% of all exploration costs which will ease their cashflow, enable some future growth and progress despite the impairment reserves and write-offs associated with Seven Heads. The gas interests should still be profitable although clearly less ecenomic than initially expected due to more challenging yields and lower than anticipated reserves. It feels like bad news but perhaps not quite as bad as everyone was afraid of.

up 21% so far today

Some more explanation on the farm-out deal. This looks like a creative solution to keep them solvent and continue their exploration arm in a cost effective way - critical for longer term viability...

Ramco Oil & Gas Limited (ROG) has granted a farmout option over its Seven Heads Oil Licensing Option (03/5) to Island Assets Limited (IAL).

The Seven Heads Oil Licensing Option covers part blocks 48/22, 48/23, 48/24, 48/27, 48/28, 48/29 & 48/30, the same area as the Seven Heads Gas Lease, but relates to oil discoveries in deeper Lower Cretaceous reservoirs, below the gas field.

Oil was initially discovered on these blocks by Esso in 1974 and tested 40 degree API oil at a rate of 1,527 barrels of oil per day (bopd). A subsequent appraisal well, drilled by Marathon in 1990 tested 45 degree API oil at 1,619 bopd.

Under the terms of the farmout option IAL will act as technical manager and will fund ROG's share of the current work programme earning the option to farm in to the acreage. To exercise the option IAL must fund 100% of ROG's share of drilling an appraisal well to test the oil accumulation. On completion of the well IAL will have the right to acquire a 44.4% interest in the acreage, leaving ROG with an interest of 29.6%.

Up 25% since start of week on oil industry rumours and I believe that there could well be more to follow when they announce the recovery plan this week - new sub oil reserves in Ireland to be explored and drilling programme in Montenegro will be fully backed. Reserves not as poor as initially feared critically gas reserves in Irish Sea. They have also won over the bankers and initial solvency fears have been allayed. This is only on the oil business grapevine where I have some network from a previous life so treat it with caution.... but knowing how hard they have worked in the last 6 weeks to get the books to balance and keep the business afloat and growing, it could be worth a punt. I should echo SueHelen's comment at the week-end, analyst sentiment is firmly in the strong sell category so proceed at your own risk as it could still go pear shaped.

They will most likely announce tomorrow although it could slip until Friday. 03 results deferred to June (post the impairment provision) which I think is a good sign. This one still has a way to go to recover to the 3-4 level but if you want a gamble then expect a significant bounce on better then expected news.

expect bad news tomorrow, why bother..

RNS Number:9291Y
Ramco Energy PLC
20 May 2004


Press Information

May 20th 2004

RAMCO SEVEN HEADS UPDATE

Ramco Energy plc (Ramco), the Aberdeen based exploration and production company,
announces an update for the Seven Heads Gas Field in the Celtic Sea, and its
related financial impact on the Group. Ramco Seven Heads Limited (RSHL), a
wholly owned subsidiary of Ramco, is Operator of the gas field.

Technical Review

An initial technical review of the geological, geophysical and recent production
data has now been concluded. It is clear from the performance of the producing
wells that deliverability from the reservoir is much poorer than had been
predicted. This lower deliverability has led to the previously reported issue of
water build up in some of the wells, which has acted to further restrict
deliverability.
The results of the 2001 appraisal well and five earlier exploration wells led to
a conclusion that a common gas water contact existed across the field. However,
the field's performance since production commenced and subsequent technical work
suggest that this key conclusion, upon which the reservoir model used for
planning the development and for reserves estimates was based, is erroneous. It
is now believed that a series of different gas water contacts exist across the
field, a phenomenon known as "stacked pay".

The existence of multiple gas water contacts suggests the reservoir is more
compartmentalised and each of the five producing wells is connected to a smaller
volume of gas bearing rock than had previously been thought. If this proves to
be the case, it is likely that further wells will be required to enable maximum
reserves recovery. It is also likely that a different well design will be
required for optimal gas recovery.

Work to develop a revised reservoir model has already commenced. This will take
several months to complete and will be an important tool for reassessing the
field's recoverable reserves and designing a future work programme.

Current Production and Trading

Data acquisition is paramount in determining the field's future deliverability
and recoverable reserves. In order to enhance data acquisition, the Seven Heads
partners elected to restrict the field's production. With effect from the start
of April, daily production from the field has been set and maintained at 25
mmscf/d. This has allowed a sequence of single wells to be shut in for periodic
acquisition of reservoir performance information without requiring a full field
shut in. This production rate management decision has also enabled the removal
of any water that has built up in the weaker wells when the wells are returned
to production after being shut in.

The daily production rate of the field is affected both by the pressure at which
the onshore pipeline system is being operated and by the production and capacity
re-profiling activities of Marathon's Kinsale facility. The decision to produce
the field at below its maximum capability has enabled the Seven Heads partners
to manage the field in a more efficient manner by reducing the exposure to
fluctuations from outside sources. This both facilitates the cost effective
management of gas transportation capacity requirements and ensures that revenue
per mmscf/d is maximised.

Ramco's 86.5% share of production at the 25 mmscf/d level is generating
sufficient revenue to fully cover operating costs, loan interest and the cost of
the back up transportation needed to ensure that its full nomination under the
Gas Sales Agreement (GSA) is delivered to RWE. Following discussions to clarify
the application of transportation system rules it has become clear that the
previous estimates of the cost of this facility were overstated. It is now
estimated that the total cost to Ramco for the capacity required to support
field production at the current level of 25 mmscf/d is #4m. Over the first three
months of the year Ramco has recorded a small profit on its substitute gas
transactions. As confirmed in previous announcements, gas sales nominations
under the GSA can be reset from October 1st 2004.

Banking

The lower than anticipated production from the field, coupled with the
unforeseen costs of the technical studies and the back up transportation system
mean that RSHL is generating much less cash from the field than had been
expected. Discussions have commenced with our bankers over the possible
rescheduling of the #56.6m non-recourse project loans and the #12m loan secured
over Ramco's oil services business. To the extent that the final technical
review recommends further work, such as the acquisition of 3D seismic, the
reworking of existing wells, the drilling of new wells or the provision of
compression, it is likely that significant additional funds will be required.
RSHL has commenced preliminary discussions with its bankers and a number of
third parties as to how this additional investment might be structured.

Impairment Provision and Impact on Net Assets of the Group

As indicated earlier it will take several months more to complete the technical
work required to support a revised reserves report on the field. As a result the
Directors believe that the right course of action is to base an impairment
review of the carrying value of the Group's interest in the Seven Heads Gas
Field on the proved reserves that can be directly attributed to the five
producing wells. This prudent approach gives rise to an impairment provision of
#93m. In addition a provision for tax of #23m, in respect of a held-over gain,
is now no longer expected to crystallise and has been released. The impairment
adjustment together with the release of tax will reduce the net assets of the
Group by #70m and will be reflected in the 2003 results which are now expected
to be announced in the first half of June 2004.

The Seven Heads partners are RSHL (Operator) 82.5%, Northern Exploration Limited
(a wholly owned subsidiary of Ramco) 4%, Lundin Ireland Limited 12.5% and
Sunningdale Oils (Ireland) Limited 1.0%.

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
James Henderson 020 7457 2020



This information is provided by RNS
The company news service from the London Stock Exchange

END

Thats good news folks !

Certainly better than was predicted by many though less specific on plans for the other reserves which I would have anticipated. Still a lot of unknowns.

but I agree keepitup there is an important section in here that bears reitrating given the viability fears:-

Ramco's 86.5% share of production at the 25 mmscf/d level is generating
sufficient revenue to fully cover operating costs, loan interest and the cost of
the back up transportation needed to ensure that its full nomination under the
Gas Sales Agreement (GSA) is delivered to RWE. Following discussions to clarify
the application of transportation system rules it has become clear that the
previous estimates of the cost of this facility were overstated. It is now
estimated that the total cost to Ramco for the capacity required to support
field production at the current level of 25 mmscf/d is 4m. Over the first three
months of the year Ramco has recorded a small profit on its substitute gas
transactions.

i.e. not only solvent but profitable - previous cost estimates overstated...

gone down far too much!!! mms tryin to buy our shares.... the crafty gits..

Well oversold and panicky negative sentiment -expect a bounce back today and this week.

spreads tightening, that is very good news!!!

Can anyone let me know any details of the legal dispute in the US? I was considering buying in on the basis that the bad news is already in place... but if they lose their appeal that is another $6.4 they will need to find from their limited cash reserves. Which could delay development / progress on 7H.

In particular, I would like to know what the dispute is about and what is the financial implications of losing? Have they made any provision for the loss? I couldn't see anything in the accounts.

Thanks
sk

Try:-
http://moneyam.uk-wire.com/cgi-bin/articles/200404081500015170X.html

Fly by Night

Red

Well, here's the preliminary results and to an amatuer eye looks to me as if it may be time to get out for a few months. A Montenegro exploration well in 1st quarter '05 perhaps looks like the next interesting time.


RAMCO ENERGY plc
("Ramco" or "the Company")

Preliminary Results for the year ended 31 December 2003

Ramco, the oil and gas exploration, production and oil services company
announces its preliminary results for the year ended 31 December 2003.

SUMMARY

Financial Results:

Turnover increased 24% to 20.8 million (2002: 16.8 million)

Losses before exceptional items were reduced to 3.4 million (2002: loss
6.8 million)

Exceptional items of 99.2 million relating primarily to Seven Heads
impairment provision announced in May

Net loss of 76.7 million after release of tax provisions

Discussions ongoing with lenders over rescheduling of project loans

E&P Operations:

Seven Heads field brought on stream at the end of 2003
Initial production level achieved of 60 mmscf/d

Major unforeseen problems encountered at the end of January 2004
Production deliberately being maintained at 25 mmscf/d, below maximum
potential

Detailed technical review of reservoir, which will underpin future
development programme, is in progress

Farm-out option over the oil potential underlying Seven Heads agreed with
Island Assets Ltd

Exploration work on our Adriatic prospects offshore Montenegro gives grounds
for optimism
Interpretation of 3D seismic data acquired in 2003 encouraging; results
indicate a range of shallow gas and deeper, very large, oil prospects

Drilling plans being finalised and farm-in partner being sought for a well
by early 2005

Oil Services
Oil Services remained profitable in difficult market conditions and
indications of steady improvement in business performance


Steve Remp, Executive Chairman of Ramco, commented:

"Our achievements in 2003 have been overshadowed by the unexpected problems at
Seven Heads. We are, however, taking positive action to stabilise our
operational and financial position, so that we are able to derive the maximum
value from the field, and exploit the potential elsewhere in our portfolio."


ENQUIRIES:

Ramco 01224 352 200
Steve Remp, Executive Chairman
Dan Stover, Chief Operating Officer
Steven Bertram, Group Financial Director

College Hill 020 7457 2020
James Henderson
Nick Elwes

Chairman's statement 2003

The production problems encountered, since the start of 2004, with our Seven
Heads gas development have obviously been difficult for the Company, and they
have demonstrated, rather forcefully, the risks inherent in our industry.

Following our successful exit from Azerbaijan in 2000, our focus has been the
Seven Heads gas field offshore Ireland. This was part of a strategy to reinvest
a large amount of capital from a high risk region of the world into a gas
development in an economically low risk area, a stable country with a growing
appetite for gas. The anticipated cash flow was destined to fund our future
exploration activities in higher risk, higher impact areas, such as Montenegro.

During 2003 the majority of the company's resources were focused on completing
the technically and financially demanding job of bringing the Seven Heads
development on stream. The field successfully commenced production at the end of
2003. We took great satisfaction in the fact that this fast track development
had been professionally managed in challenging circumstances. However, that
success has since been overshadowed by unexpected production problems. Work on a
revised reservoir model is under way and will be completed over the next few
months. That will underpin a reassessment of the field and help determine a
future development programme designed to maximise the economic recovery of the
field's reserves.

As already announced, the Board has made a substantial impairment provision
against the carrying value of our interest in the Seven Heads gas field and that
provision dominates the financial results for the year.

Financial Results

Group turnover for 2003 totalled 20.8 million, up from 16.8 million in 2002,
reflecting the commencement of gas sales under our Seven Heads gas contract and
a decline in activity levels for Oil Services. Losses before exceptional
operating items fell to 3.4 million from 6.8 million in 2002.

Exceptional operating items are however significant, totalling 99.2 million as
follows:

million
Seven Heads 93.0
Poland 5.6
Tenge 0.6
----
99.2

The Seven Heads amount relates to an impairment provision against the carrying
value of the gas field. The second item relates to a provision that has been
made against a loan due from an associated company through which we hold our
exploration acreage in Poland. Although we have discovered gas on the acreage
the area is likely to require significant further investment before
commerciality could be confirmed. At this time the Group does not have the funds
available to guarantee our continued involvement in the area. The final
exceptional item represents the estimated legal costs expected to be incurred
in our appeal against the Tenge judgement in Texas, being management's best
estimate of the outcome of the appeal.

Administrative expenses rose to 1.8 million from 1.4 million the previous
year, whilst exchange losses reduced to 686,000 from 2.8 million in 2002. Net
interest income reduced from 1.8 million in 2002 to 738,000 in 2003.

The overall result before tax for the year which, as indicated above, is
primarily the result of significant exceptional items, is a loss of 104.1
million. This loss has been reduced by a tax credit amounting to 27.4 million,
including the release of a provision for current and deferred tax relating to
the held over gain on profit arising from the disposal in 2000 of the Group's
interest in the ACG field in Azerbaijan. The Group after tax loss is 76.7
million, (2002: loss 9.3 million). The Board is not recommending payment of a
dividend (2002: nil).

At 31 December 2003 Group cash balances were 3.3 million and project loans
totalling 60 million had been drawn to help fund the Seven Heads gas
development. A further 8.6 million of project loan was drawn shortly after the
year end. Of the total loans of 68.6 million, 56.6 million is non-recourse,
secured only against Ramco's share of the Seven Heads gas reserves, the balance
of 12 million is secured against our Oil Service business. As previously
announced we are in discussions with our bankers over the possible rescheduling
of these project loans. Our bankers have confirmed that it is not their
intention to withdraw the finance facilities while the technical work and
negotiations are ongoing.

As a result of the uncertainties relating to the outcome of our discussions with
the Group's bankers in respect of the Seven Heads project loans and the outcome
of the appeal in the Tenge case, the auditors' report on the financial
statements for the year ended 31 December 2003 will refer to these
uncertainties.

Ireland

Although the Seven Heads gas field commenced production at levels in excess of
our target, by the end of January 2004 it was apparent that we had encountered
major unforeseen problems. Production continued to fall in a series of stepped
changes resulting in an inability to meet our gas sales nominations and,
consequently, the need for us to provide our gas buyer with substitute gas from
the UK. We immediately commenced a detailed technical review and have kept the
market informed through a series of Stock Exchange announcements.

The latest of these, on 20 May 2004, provided shareholders with an extensive
update, confirming that the field was purposefully being produced below its
maximum potential, at 25 mmscf/d, in order to allow additional data acquisition
to assist the ongoing technical review. The field is still producing at this
rate, which is generating sufficient revenue to cover Ramco's operating and loan
interest costs.

Since project inception in 1999, the investment model, which was the foundation
for our major financial commitment had been reviewed and endorsed by our
in-house team, our partners, third party reservoir engineers, bankers and their
technical advisers and our gas buyer and their technical advisers. However,
field performance has undermined the reservoir model upon which we based our
decision to embark on the development.

As a result of the poorer than expected production, we have commenced
discussions with our bankers to restructure our existing finance arrangements
for the field. We are also in discussions with interested third parties
regarding the funding of any additional expenditure that may be recommended by
the technical review. Additionally we are in a position to enhance the future
potential from the Seven Heads infrastructure through the extensive additional
acreage in the region that is held by Ramco companies. The recently announced
farm-out option over the oil potential which underlies the Seven Heads gas field
is an example of the additional prospectivity in the region.

Montenegro

We remain enthusiastic about the exploration potential in the Adriatic, offshore
Montenegro. Since Hellenic Petroleum completed the acquisition of a majority
stake in our joint venture partner, the former state oil company, Jugopetrol
Kotor, our progress in the region has accelerated. During the fourth quarter of
2003 we acquired 312 sq km of 3D seismic. The data acquired was of high quality
and the interpretation phase has now been completed. The results are
encouraging, generating further optimism about the prospectivity of the area.

The Ulcinj block offers a range of major prospects including shallow Pleistocene
and Pliocene gas and a number of medium to deep very large carbonate oil
prospects. Most of these could be drilled in water depth of no more than 100m.
We are finalising plans for the drilling of an exploration well to test the
shallow gas prospects and are actively seeking a farm-in partner to allow that
work to be completed by early next year.

Oil Services

The results of our Tubular operations were down on 2002, reflecting the slow UK
North Sea market, although this was partially offset by an improved contribution
from Norwegian activity. Pipeline coating activity benefited from a range of new
projects including coating pipe for Algeria, Trinidad and West Africa as well as
the UK. Overall, the Oil Services division demonstrated its ability to remain
profitable even in difficult market conditions.

Looking forward the signs indicate a steady improvement, supported by a three
year extension to our cleaning and logistics contract with Shell and with
activity levels in Japan expected to increase following the renegotiation of
our contract with the JFE Steel Corporation.

Outlook

The unforeseen problems encountered in Ireland have undeniably presented a major
challenge to Ramco's Board and management. Regardless of the many improvements
in technology, the exploration and production business is not an exact science.
The history of exploration within both Seven Heads and neighbouring fields, such
as Marathon's very successful Kinsale field, contributed to our confidence that
we understood the reservoir and thus believed the project's risks to be within
tolerances which could be adequately managed. This has not turned out to be the
case and we have recognised this in the substantial provision against the
carrying value of the Group's investment in this asset.

We are however taking positive action to stabilise our operational and
financial position. The Board and management team remain committed
to the Company and our priority remains to derive the maximum value from Seven
Heads and our other assets. I wish to take this opportunity to thank them for
their dedication, loyalty and steadfastness. This is a team that has created
significant value in the past and I am sure will do so again. Substantial
opportunity remains in the portfolio, which has taken both skill and tenacity
to assemble, and our strategy remains to exploit that potential.

Ramco Energy plc
Preliminary Results

Why the sudden jump today?

Price has been creeping up over the past couple of days but no real indication why. Maybe a rumour of an update regarding the Seven Heads field but could just be a blip. Share price is up 55% over the last five days but that follows on from a big drop to approx 26p. If you are already in on these shares then hold tight and see what develops but if your not I would proceed with caution, ROS shares have a habit of bouncing up and down and you could have to wait a long time before you see another rise in the share (IMHO). If there is good news regarding Seven Heads then I would expect to see a significant move in the share price but don't get your hopes up yet.