23rd Jun 2008 15:00
Ramco Energy plc
("Ramco" or the "Company")
FURTHER RE: ACQUISITION - WELL SPUDDED ON ROYALTY INTEREST
Further to the announcement on 14 May 2008 regarding the acquisition of Eagle HC Limited ("Eagle"), which owns a portfolio of North Sea royalty interests, Ramco, the Aberdeen-based exploration
company, announces that £0.5 million of the aggregate deferred consideration for the acquisition of up to £1 million is now payable.
Ramco acquired Eagle for an initial consideration of £1.25 million, £250,000 of which has
already been satisfied by the issue of new ordinary shares in the capital of the Company ("Ramco Shares"), with the balance to be satisfied by a further issue of Ramco Shares following the announcement of Ramco's preliminary results for the year ended 31 December 2007.
The deferred consideration of up to £1 million becomes payable if certain milestones are reached; £0.5 million becomes payable by Ramco upon the spudding of the next well on the royalty acreage with the balance being payable when cash flow from the royalty portfolio commences.
The Company has today been informed that Lundin Petroleum AB ("Lundin") has commenced the drilling of exploration well 21/8-4 on the Torphins prospect located on block 21/8, under production licence P1107. This is a licence in which Eagle holds a royalty interest of 0.54% and consequently is the trigger for the first £0.5 million of deferred consideration. Ramco has elected to satisfy the deferred consideration through the issue of Ramco Shares. The shares will be issued at the average closing mid-market price for the 15 business days immediately prior to the issue of the shares. A further announcement will be made tomorrow confirming the price, number and date of admission to trading of the Ramco Shares to be issued.
Lundin has stated that well 21/8-4 is targeting the Palaeocene sandstone reservoir and that the Torphins prospect is defined by a 3D seismic anomaly. It estimates the unrisked gross potential to be approximately 30 million barrels of oil equivalent (mmboe). The well is a follow on to well 21/8-3, which was announced by Lundin as a discovery in November 2007.
23 June 2008
ENQUIRIES:
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Ramco Energy plc |
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Steven Bertram |
Managing Director |
01224 748480 |
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John East & Partners Limited |
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Simon Clements / Bidhi Bhoma |
020 7628 2200 |
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College Hill |
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Nick Elwes |
020 7457 2020 |
Related Shares:
Seascape Energy