Ramco Snags Eagle HC for 1.25 million

Ramco Energy, the Aberdeen-based exploration company, is pleased to announce that it has acquired Eagle HC Limited (Eagle) for an initial consideration of 1.25 million to be satisfied in Ramco shares. Eagle owns a portfolio of North Sea royalty interests that were accumulated by Exploration Geosciences Limited (EGL). Ramco has also appointed EGL as its technical consultants.

  • Eagle owns royalty interests across 9 North Sea licences on the UK continental shelf ("UKCS") Eagle's royalty portfolio will provide Ramco with exposure to the North Sea whilst requiring no funding
  • EGL is a leading provider of innovative exploration proposals and acreage acquisition strategies
  • EGL will provide geological and geophysical support to Ramco's existing assets, the newly acquired royalty portfolio as well as identifying new areas for exploration activity outside of the North Sea
  • Mark Groves Gidney, Managing Director of EGL will join the Ramco Board as a Non-Executive Director
  • Steve Remp, Chairman of Ramco, said: "I am delighted to have acquired an initial exposure to the North Sea in a manner that does not require future funding by the Company and to have someone with Mark's extensive technical experience joining the Ramco board. I am also pleased to have secured access to the experience and skill base of EGL and look forward to their support in helping Ramco accelerate its future exploration and appraisal plans."

    The initial consideration for the acquisition of Eagle will be settled in two stages. Firstly, through the immediate issue of 943,396 new shares of 10p each in Ramco at yesterday's closing mid-market price of 26.5p per share which will satisfy 250,000 of the initial consideration, followed by a further issue of new Ramco shares satisfying the balance of the initial consideration (i.e. 1 million) at the average closing mid-market price for the nine business days following the announcement of Ramco's preliminary results for the year ended 31 December 2007. Following admission of such shares, the issued share capital of the Company will be 37,831,211 shares.

    Further consideration of up to 1 million will become payable in the future if certain milestones are reached, 0.5 million becomes payable by Ramco upon the spudding of the next well on the royalty acreage and a further 0.5 million when cash flow from the royalty portfolio commences. All such contingent consideration can be settled at Ramco's option, either in cash or through the issue of new shares in Ramco at the average closing mid-market price for the 15 business days immediately prior to the issue of the shares.

    Eagle owns royalty interests in nine North Sea licenses covering 14 blocks The portfolio includes a royalty over UKCS block 21/8 within which the 21/8-3 well was, in late 2007, announced as a discovery by Lundin, the operator of that license. A further well is scheduled to be spudded on that acreage in the second quarter of this year, with the intention of proving commercial reserves. Also included in the portfolio is a royalty interest in UKCS block 15/18a, operated by Petro-Canada, where well 15/18a-12 encountered oil and gas in the Maria prospect earlier this year.


    Our Privacy Pledge

    Most Popular Articles

    From the Career Center
    Jobs that may interest you
    United States Houston: Account Rep, Bus Dev, Sr
    Expertise: Business Development|Sales
    Location: Houston, TX
    Business Development Manager
    Expertise: Business Development|Construction Manager|Sales
    Location: Tempe, AZ
    SXL- Manager, Business Development
    Expertise: Business Development
    Location: Newtown Square, PA
    search for more jobs

    Brent Crude Oil : $50.47/BBL 0.98%
    Light Crude Oil : $49.72/BBL 1.09%
    Natural Gas : $2.76/MMBtu 1.09%
    Updated in last 24 hours