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

Falling off a cliff any suggestions?

close your eyes!

I suspect many are in the same boat!

Hopefully now the commitment has ended and Ramco now nominate gas volumes the SP will start to steadily rise. Well, that's the theory...............

This Email News Alert service is brought to you by Ramco Energy plc.

RNS Number:3701H
Ramco Energy PLC
14 January 2005


January 14th 2005

RAMCO ANNOUNCES SEVEN HEADS UPDATE AND BULGARIAN FARM-OUT

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 the
completion of a farm-out of a part of its acreage onshore Bulgaria. Ramco Seven
Heads Limited (RSHL), a wholly owned subsidiary of Ramco, is Operator of the
Seven Heads gas field.

The Seven Heads field has been Ramco's priority over much of the past year, but
we have also been actively negotiating a series of farm-out agreements with the
objective of reducing the Group's future capital expenditure requirements whilst
retaining an interest in the exploration upside. During the first half of last
year we announced the farm-out of a part of Ramco's interest in the Seven Heads
oil potential and we have now concluded a farm-out deal over a part of our
onshore interests in Bulgaria.

SEVEN HEADS

Technical Review

A comprehensive technical review of the geophysical, geological and recent
production data from the Seven Heads gas field has been completed and assessed
by the Seven Heads partners, RSHL's Bankers and the Petroleum Affairs Division
of the Irish Government.

The key finding of the study is the Seven Heads reservoir is significantly more
compartmentalised than had been anticipated and the production wells are
connected to a smaller volume of gas bearing rock than had been expected.
Consequently each well is draining a significantly smaller reservoir area than
originally interpreted. It is believed this is a result of the presence of more
severe faulting and stratigraphic compartmentalisation than was apparent prior
to development.

The original interpretation of the Seven Heads field was of a single gas
accumulation in a structure completely filled to the "spill point". It was
recognised there were highly permeable, good quality sands, and additional gas
was present in lower permeability sands. This pre-development interpretation was
supported by seismic maps, well logs, well tests, cores and pressure data
obtained from six exploration and appraisal wells and was endorsed by several
independent reservoir engineering companies.

New pressure data, collected during the development drilling programme and
production phase, has illustrated subtle pressure differences between some of
the sands. This demonstrates the sands are isolated from one another. Analysis
of production data confirms some of the gas in the lower permeability sands is
being produced, but at rates significantly lower than anticipated by even our
most cautious predictions. The technical review has concluded the water
accumulation experienced in some of the well bores is the result of condensation
of water vapour naturally contained in the gas. This only occurs because the gas
is being produced at a much lower rate and pressure than had been expected, due
to the greater compartmentalisation. The water build up is being controlled by
shutting in each well and allowing a pressure build up before reopening the well
to unload the water.

The technical review has identified a number of sands in two of the existing
wells which appear to contain gas and which are currently not open to the wells.
We are therefore assessing the possibility of opening these sands for production
by adding new perforations in these wells during 2005. The precise timing and
the economic viability of such work depends on the availability of a suitable
vessel. Options, including the use of a drilling rig or a dynamically positioned
well intervention vessel, are currently being evaluated and discussed with
partners. The earliest the work could be undertaken is May 2005.

The technical review has also indicated it is likely substantial additional gas
may be present elsewhere in the field. However, this would require to be
substantiated through acquisition of 3D seismic, which would also be critical to
ensuring the optimal placement for drilling new wells.

Current Production and Gas Sales

Since the field first failed to produce sufficient gas to meet RSHL's
obligations under its Gas Sales Agreement (GSA), RSHL has been suffering the
additional cost burden of importing the shortfall quantities of gas from
Scotland. This situation ended at the start of the new gas sales year on 1st
October 2004. At that point our contractual commitments under our GSA with RWE
Ireland Limited (RWE) changed and we are now nominating sales volumes that match
field deliverability. The commercial arrangements necessary to enable us to sell
the additional volumes of gas that we anticipate following the completion of the
perforations during the current gas sales year are in place.

A further improvement in the commercial situation has been achieved through
profiling the field's gas production. In order to maximise gas sales revenue,
the production profile of the field is being managed to maximise production
during the winter months when gas prices are normally highest. Currently the
field is producing 12 mmscf/d and forecasts indicate that without the
perforation programme, the likely volume of production in the current gas sales
year will be approximately 2 bcf.

Reserves

As stated above, the technical report indicates the field is significantly more
compartmentalised than originally anticipated and this obviously has a material
impact on the field's recoverable reserves. It is currently Ramco's view that
approximately 19 bcf is recoverable from the existing wells in addition to the 9
bcf produced to-date. If additional wells are successfully drilled and produced
then the recoverable reserves figure could rise to approximately 83 bcf. Whilst
extremely disappointing, these figures are within the range of downside
possibilities identified in the original Plan of Development.

Ramco effectively wrote off its interest in the field when it made a substantial
impairment provision in its 2003 accounts, the outcome of the technical review
confirms that to be the appropriate treatment.

Banking

RSHL's bankers have temporarily waived certain rights under the banking
agreements in order to allow RSHL to progress detailed negotiations with a
number of third parties interested in providing the additional investment
necessary to undertake both the perforation programme and 3D seismic survey
work. A separate announcement will be made once these arrangements are
finalised.

BULGARIA

Ramco also announces that its wholly owned subsidiary, Ramco Bulgaria Limited
(RBL) and its partner Anschutz Bulgaria Limited (Anschutz) have agreed a
farm-out with Chimimport JSC over their A-Lovech acreage onshore Bulgaria.

The A-Lovech block lies approximately 80 km to the north east of Sofia and
covers 3,558 sq km. RBL (20%) and Anschutz (80%) have been working together on
the acreage over the past three years and have agreed that Chimimport, a
Bulgarian company with a subsidiary specialising in seismic acquisition, will
join them for the next phase of exploration. Chimimport will earn a 45% interest
in the acreage by completing 570 sq km of 3D seismic. Once completed, the
farm-out will result in the group's interests being Chimimport 45%, Anschutz 44%
and RBL 11%.

The seismic acquisition programme will be aimed at multiple geological targets
and is likely to be carried out between July and November 2005.

OTHER FARM-OUTS

Ramco is also at an advanced stage of negotiations of other farm-out agreements
over its exploration acreage. Further announcements will follow if these
negotiations are concluded successfully.

ENQUIRIES:

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

College Hill - London
Nick Elwes 020 7457 2020

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

Notes

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




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

END
DRLILFLTLAIVLIE

Looking better today chaps. Onwards and upwards.

The blue touch paper has well and truely been lit!!!

As you say the blue touch paper has been lit but how high will the rocket go before it runs out of gas?

Don't be too hopeful of a return to 1 just yet!

I think it will stall at 45p, hopefully it will chug on to 50p. Perhaps a month or two consolidation at that proce until the next press release?

Agreed. SP has come a long way in 2 days. Will come off slightly and consolidate 32-38p range before (hopefully) steady climb north. Solid +ve news needed before genuine non-out-and-out speculation returns. Digits crossed.
Nam

That is what I call +ve news. Up and away!
Nam

Whats the thoughts on the take over price if their is a take over and who is it

Mojo really depends on when you bought in. If you are 100p plus then methinks you may be disappointed and I should make the best of things. If you were buying down to 24-26p then the 100% return on that probably means you should take profits now. No idea as to suitor. Time will tell. Perhaps its all hot air.
Nam.

It hurts me to say but i bought in at 97p 10.000.000 of the b..... things but i have writen them off to my stupidity.so like you say time will tell

"Oil & Gas Exploration & Production EAD-Pleven (EPIC GAZ on the bulgarian stock exchange) - are the company interested in buying out Ramco - so say the rumours that are going round at the moment",

From jellyjerks on iii

Thanks SWW
Nam

A bit quick with the 0 10.000

Mojo
Yes, I was really concerned about your judgement there for a moment. Still, 10k@97p when you saw it plunge to low 20's must have been rather sickening.(Cliche falling knife etc). Keep the faith. Good luck.
Nam

Yes i bought mid march 04 went on holiday to America for three weeks at the end of march and the rest is history but as they say shares go down as well as up now befor i go on holiday i tend to sell what i have

Mojo
At least it will be a substantial uplift from the trough. Have a good time on hols.
Nam