Seven Heads Field on track

Ramco Energy Plc. passed several important gas-producing milestones for the Seven Heads gas field, located in the Celtic Sea offshore Ireland. Ireland's minister of communications, marine, and natural resources granted a petroleum lease to the Seven Heads partners. The Seven Heads partners will submit a plan of development for the gas field to the Minister for his consideration and approval.

Ramco Energy Plc. passed several important gas-producing milestones for the Seven Heads gas field, located in the Celtic Sea offshore Ireland.
Ireland's minister of communications, marine, and natural resources granted a petroleum lease to the Seven Heads partners. The Seven Heads partners will submit a plan of development for the gas field to the Minister for his consideration and approval.
Also, Ramco concluded a gas sales agreement with Innogy Plc. for Ramco's entire share of the Seven Heads gas production. Under the agreement, Innogy will buy 80MMcf/d of gas from Ramco. The agreement is for an initial period of seven years, and may be extended to life of field at the option of Innogy, and covers the whole of Ramco's 86.5% share of the production from Seven Heads. The price to be paid by Innogy is close to, and will vary with, the UK national balancing point price for gas.
Innogy will take delivery of gas at the existing Inch terminal, County Cork, which forms part of the Republic of Ireland's gas network. Deliveries of gas are to start before the end of 2003 at 50 MMcf/d and rise to 80 MMcf/d, depending on field performance. Each of the Seven Heads partners is responsible for selling its share of any gas production from the field.
Subject to approval of the plan of development by the minister, the Seven Heads partners plan to re-complete well 48/24-5A and drill five additional production wells, commencing in April next year. The wells will be linked to a subsea manifold, and connected to the nearby Marathon-operated Kinsale Head facilities by subsea pipeline. The contract between Marathon and the Seven Heads partners, which states the two companies will share in the operating costs of Marathon's facilities, were concluded earlier in the year.
Steve Remp, executive chairman of Ramco, said, "Since declaring Seven Heads commercial in July 2002, we have been working hard to achieve the ambitious goal we set ourselves of first gas in 2003. The award of the petroleum lease and the signing of a gas sale agreement with Innogy represent substantial steps towards that goal."
The Seven Heads partners include Ramco , operator with 86.5%, Island Petroleum Developments Ltd. 12.5%, and Sunningdale Oils Ltd. 1%.
11/15/02

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