Ramco Completes the Zdynianka-1 Well in Poland

Ramco Energy in partnership with RWE Dea AG has completed drilling and testing of the Zdynianka-1 exploration well in southern Poland. The well was drilled using a National 110 UE rig contracted from Jaslo Oil & Gas Exploration Co Jaslo Ltd to a depth of 2,325 metres on Block 435, and has recorded gas shows from three zones. The Zdynianka 1 exploration well, Ramco's first Polish well, is located approximately 150 km southeast from Krakow. The well reached total depth of 2,325m on 19 September 2002 and was abandoned on 02 December 2002 after an extensive testing program. Tests for gas production potential were conducted in five zones of a Carpathian overthrust belt play at depths ranging from 520 meters to 2,230 meters. Three of the zones produced over-pressured, high quality gas along with formation water. A 66-meter interval below 1,800 meters produced rates ranging between 0.8 mmscfd, 1,800 bwpd and 2.6 mmscfd, 4,400 bwpd from a fractured, low porosity sandstone. The remaining two zones produced lower gas rates along with water. Initial interpretation suggests the well penetrated the target horizon in a down-structure position near the gas-water contact.

Subject to pending Polish ministry approvals, Ramco and RWE Dea AG now plan to drill a second well on a related structure approximately 15 km to the northwest of Zdynianka 1. RWE Dea AG and Ramco will be analyzing the full information gained on Zdynianka over the next few months while results are obtained from the second well in the second quarter of 2003.

The Carpathian Blocks 434, 435, 454 are licensed to Medusa Oil and Gas (Poland) sp. z o.o. which is 58.5% owned by RWE Dea AG and 41.5% by a subsidiary of Ramco. RWE Dea AG is operator and is funding $12 million of an agreed work program on the Blocks including seismic, the drilling of the Zdynianka-1 well, and the second exploration well.

The Carpathian Blocks cover 2,077 square kilometers, and lie along Poland's southern border with the Slovak Republic, comprising the outcrop of an inner part of the mountain thrust belt. This area is one of the world's oldest petroleum producing regions with shallow oil fields discovered on the basis of surface seeps as long ago as the 1850s.