RNS Number:8049N
Ramco Energy PLC
22 July 2003


22 July 2003


                  RAMCO ANNOUNCES SEVEN HEADS DRILLING UPDATE


Seven Heads


Ramco Energy plc, the Aberdeen based exploration and production company and
Operator of the Seven Heads gas development in the Celtic Sea, announces that
the Seven Heads partners have successfully completed drilling and testing two
further wells. The wells are part of a six well programme which should see the
field in production before the end of the year.


Well 48/24-8 was drilled to a depth of 4,150 ft by the semi-submersible rig
Sedco 711. The well tested gas at a maximum rate of 27.9 mmscfd. For comparison
with previous tests, Ramco has normalised this data to a constant well head
pressure of 565 psia and on this basis the well can deliver 25.2 mmscfd. This
well was drilled into an area of the field where the reservoir is at a shallower
depth than the rest of the field. The well has confirmed that a common gas water
contact exists throughout the field. As a result there is a greater column of
gas bearing sands at that location than had been assumed in the reserves
estimates announced to date.


Well 48/24-9 was drilled to a depth of 3,655 ft by the semi-submersible rig
Sedco 704. The well tested gas at a maximum rate of 19.3 mmscfd. For comparison
with previous tests, Ramco has normalised this data to a constant well head
pressure of 565 psia and on this basis the well can deliver 12.5 mmscfd.
Drilling and completion performance on this well has been the best to date with
an elapsed time of just 24 days.


The flow rates of the earlier wells at the same constant well head pressure of
565 psia were, well 48/24-5A, 13.9 mmscfd; well 48/24-6, 34.3 mmscfd; and well
48/24-7A, 16.7 mmscfd. All of these rates are above the 10 mmscfd assumed in the
base production forecast for the field.


The Sedco 711 is now being relocated within the field and will shortly commence
the drilling of well 48/23-2, while the Sedco 704 has already moved and
commenced the re-completion of the 2001 appraisal well 48/24-5A; these are the
final wells in the drilling programme.


All 25.5 km of 8" infield pipelines and associated umbilicals 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 central manifold is also in place on the sea bed and the sub-sea
hook up work has commenced.


The construction work necessary to connect the Seven Heads gas pipeline to the
Marathon Kinsale A platform is well under-way. The strong gas price projections
for the winter months have encouraged the Seven Heads partners to extend the
project budget and to commit to an accommodation rig to enable the remaining
topsides work schedule to be accelerated, overall allowable personnel numbers on
Marathon's Kinsale A platform being a limiting factor. This action should enable
the project to deliver first gas early in the fourth quarter of this year.


Proved and probable reserves were independently assessed at 300 bcf before this
year's drilling programme began. This figure will be reviewed once the drilling
programme 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%.



Czech Dispute Settlement


Ramco has reached agreement with Czech company Moravske Naftove Doly, a.s.
("MND") on the settlement of a dispute between MND and Ramco's subsidiary Medusa
Czech Operations Limited ("Medusa") which has been the subject of arbitration
proceedings in Prague.


Under the terms of the settlement Ramco has received a total of $2,047,396 from
MND and MND has acquired Medusa's interests in all tangible and intangible
assets generated by the parties' venture in the Czech Republic as well as the
share capital of Medusa which has no activities outside the scope of the venture
with MND.   Ramco has already written off its investments in the Czech Republic
in full and has expensed the costs of asserting its claims in the arbitration
and related proceedings.


ENQUIRIES:


Ramco Energy - Aberdeen
Steven Bertram Group Financial Director            01224 352 200


Fleishman-Hillard Saunders - Dublin
Michael Parker                                     00353 1 618 8450



College Hill - London
Phil Wilson-Brown                                  020 7457 2020








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