Having completed the drilling program on the Seven Heads field, Ramco has prepared an interim assessment of the impact of the results on the proven and probable reserves estimates for the Seven Heads field. Gas Initially In Place (GIIP) has increased substantially, and actual well productivity data has enabled a more accurate prediction of recoverable reserves. The company estimates that the Full Field proven and probable GIIP for 2003 is between 700 -800 bcf and the Proven and probable recoverable reserves for 2003 are between 375 - 425 bcf. This is compared to 2002 when the Full Field proven and probable GIIP was placed at 552 bcf and the proven and probable recoverable reserves were placed at 304 bcf.
The 2002 reserves estimates were prepared by Exploration Consultants Limited (ECL), Ramco's independent reserves auditors, and formed the basis of the Seven Heads Plan of Development. The preliminary 2003 reserves estimates have been prepared by Ramco based on the well results from this year's drilling program. ECL has been commissioned to formally review the proven and probable reserves in the Seven Heads field, and Ramco expects to be able to announce these results in September 2003.
All the Seven Heads field partners have independently sold their gas to Innogy Ireland Limited (Innogy).
Having concluded their separate negotiations with Innogy, the field partners have now jointly nominated gas production for the first contract year (1st October 2003 - 30th September 2004) at a gross field rate of 60 million standard cubic feet per day. The individual company nominations are in proportion to their equity holdings - which are Ramco (Operator) 86.5%, Island Petroleum Developments Limited 12.5% and Sunningdale Oils (Ireland) Limited 1.0%.
The Seven Heads development drilling program has now been completed, and Transocean's semisub, Sedco 704, will shortly be returning to Invergordon.
The sixth and final well (48/23-2), is the furthest west of the wells, some four kilometres from the nearest well. It was drilled to test upside potential on the western limits of the Seven Heads structure. The well was drilled to a depth of 3613 ft, but was not tested as there were insufficient hydrocarbon indications to justify completion. Technical data indicates the presence of a previously unknown fault near the well, suggesting that this area is isolated from the main area of the field. The well has been plugged and abandoned.
The extensive data from this well will provide valuable information to the Seven Heads partners as they undertake further technical studies over the next year to assess the potential of the unexplored south western extension of the Seven Heads field.
Steve Remp, Ramco's Executive Chairman said: "The Seven Heads development is a major project both for Ramco and Ireland. We are delighted with the increase in recoverable reserves of up to 40% and very pleased with the excellent progress made since receiving formal approval for the development just five months ago."
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