2nd Feb 2006 11:49
Ramco Energy PLC02 February 2006 2nd February 2006 RAMCO SELLS ITS INTEREST IN THE SEVEN HEADS GAS FIELD TO MARATHON Ramco Energy plc (Ramco), the Aberdeen based independent exploration company,announces that it has concluded the sale of its 86.5% interest in the SevenHeads Gas Field for £5.7 million in cash to Marathon International PetroleumHibernia Limited (Marathon). The sale process for the gas field commenced in July 2005 and was co-ordinatedby Ernst & Young as part of a waiver agreement with Ramco's lenders. Marathonwas the successful bidder in a competitive tender process. All of the proceeds of the sale, after costs, flow to Ramco's lenders and retiresums due to the lenders. The loans had been secured against the interest in thegas field as a part of the finance package entered into in April 2003, to helpfund the development of the gas field. In the six months to 30 June 2005 Ramco's interest in the gas field recorded aprofit of £1.8m before an associated interest charge of £2.6m. As previouslyreported, the carrying value of the interest in the gas field had been reducedto nil following the recognition of an impairment provision. Marathon will now serve as operator of the gas field. They also take over thedecommissioning liability relating to the 86.5% interest in the field and allother remaining project related parent company guarantees. Stephen Remp, Ramco's Executive Chairman said: "The sale of our interest in the Seven Heads Gas Field represents a significantand positive step for Ramco. The transaction removes potential liabilitiesassociated with the project and allows us to draw a line in the sand. Havingreached a settlement with our lenders we can now focus on the next stage of thestrategy, to create value from our exploration portfolio. We are largely carriedthrough this year's work programme which includes the drilling of an explorationwell on the Donegal acreage, scheduled for summer this year. We are ready tobegin moving forward again." Ramco Energy plc - Aberdeen Steven Bertram - Managing Director 01224 352200 College Hill - London Nick Elwes 020 7457 2020 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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