The technical review of the gas field is nearing completion and will shortly be ready for presentation to partners, banks and the Petroleum Affairs Division in Ireland. After discussion with these parties Ramco expects to make an announcement summarizing the findings of the review and detailing the agreed future plans for the field. Ramco anticipates it will not be in a position to publish any new information on the field before the end of August 2004.
Current Production and Trading
Field production continues to be constrained to allow optimization of the back up transportation facilities and to enhance data acquisition, which remains a priority. The average daily production from the field during July was 20.3 mmscf/d.
As confirmed in previous announcements, gas sales nominations under the Gas Sales Agreement can be reset from October 1, 2004.
Discussions with the Group's bankers as well as third parties interested in participation in the project are continuing but will not reach a conclusion until the technical review has been completed and future plans have been agreed.
The impairment provision announced previously and reflected in Ramco's 2003 results effectively wrote off the Group's interest in the field, reducing its carrying value to the same level as the non-recourse finance associated with the development, i.e. £56.6m. The outcome of the technical review is not expected to increase the carrying value of the Group's interest in the field.
Peter Everett, Senior Non-Executive Director will chair the AGM next week as Steve Remp, Ramco's Executive Chairman, is currently recovering from recent surgery to remove a cancerous tumor. Ramco has been advised that the surgeon completed fully curative surgery. At this time Ramco expects Mr. Remp to return to work during October. During his absence Mr. Everett is acting Chairman and Daniel Stover, Chief Operating Officer, is acting Chief Executive Officer.
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%.
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