Ramco Completes 2nd Seven Heads Production Well

Ramco Energy has successfully completed the drilling and testing of well 48/24-7A. This is the second production well completed this year, part of a six well program which will see the field in production before the end of the year.

The well was drilled to a depth of 3,626 feet by the semisubmersible Sedco 704. The well tested gas at a maximum rate of 23.7 mmscfd. For comparison with previous tests, Ramco has normalized this data to a constant wellhead pressure of 565 psia. On this basis the present well can deliver 16.7 mmscfd. For comparison, well 48/24-5A produced 13.9 mmscfd and well 48/24-6 produced 34.3 mmscfd. All of these rates are above the 10 mmscfd assumed in our base production forecast for the field. Upon completion of this test, the Sedco 704 will relocate within the field and will commence the drilling of well 48/24-9. Its sister rig the Sedco 711 is currently drilling well 48/24-8. Following this, one further well and the re-completion of the 2001 appraisal well 48/24-5A are scheduled to be completed by the end of August.

All 25.5 km of 8" infield pipelines which will connect the wells to a central field manifold have been laid on the sea bed and trenched, as has the 35 km of 18" main pipeline back to Marathon's Kinsale A platform. The control umbilical lay has begun and the manifold is due to be installed later this month. The construction work necessary to connect the Seven Heads gas pipeline to the Marathon Kinsale A platform is well underway.

The field remains on schedule for first gas production during the fourth quarter of the year. Proved and probable reserves were independently assessed before this year's drilling program began at 300 bcf, this figure will be reviewed once the drilling program has been completed. Ramco has agreed to sell its share of the field's gas production to Innogy Ireland Limited.

The Seven Heads partners are Ramco (Operator) 86.5%, Island Petroleum Developments Limited 12.5% and Sunningdale Oils (Ireland) Limited 1.0%.

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