Ramco & Partners Win Exploration License Offshore Ireland

Ramco Energy's subsidiary, Ramco Donegal Limited and its partners have been granted a frontier exploration license (1/05) over 408 sq km (101,000 acres) around 70 kms from the north western coast of Ireland. The license covers Block 13/7 and part blocks 13/11 and 13/12.

Ramco, Sunningdale Donegal Basin Limited (Sunningdale) and Lundin Exploration B.V. (Lundin) had previously held, through respective affiliates, a licensing option (00/02) over this area and have already completed an extensive technical evaluation program which has identified a number of drillable targets. The largest of these, Inishbeg, is a four-way dip-closed anticlinal structure and lies in a water depth of approximately 320ft.

Island Oil and Gas plc (Island) and Petroceltic International plc (PIP) have agreed to farm in to the exploration license by carrying dry hole and testing costs of an exploration well for RDL and Sunningdale. Farm in agreements have been signed, and a Joint Operating Agreement is currently being drafted, reflecting interests in the license as follows: RDL 19.25% (carried through an exploration well), Lundin (Operator) 35%, Island Assets Porcupine Limited (a wholly owned subsidiary of Island) 26%, Lerida Trading Limited (a wholly owned subsidiary of PIP) 16.25%, Sunningdale 3.5% (carried through an exploration well).

Under the terms of the frontier exploration license, which runs for 15 years, it is planned that an exploration well will be drilled during 2005, targeting the Triassic Sherwood Sandstone reservoir in the Inishbeg prospect. The Sherwood Sandstone is the productive reservoir in the Corrib Gas Field, which lies on trend to the southwest, and is currently under development.