RNS Number : 3161X
Ramco Energy PLC
23 June 2008
Ramco Energy plc
("Ramco" or the "Company")
FURTHER RE: ACQUISITION - WELL SPUDDED ON ROYALTY INTEREST
Further to the announcement on 14 May 2008 regarding the acquisition of Eagle HC Limited
("Eagle"), which owns a portfolio of North Sea
royalty interests, Ramco, the Aberdeen-based exploration
company, announces that £0.5 million of the aggregate deferred consideration for the
acquisition of up to £1 million is now payable.
Ramco acquired Eagle for an initial consideration of £1.25 million, £250,000 of which
has
already been satisfied by the issue of new ordinary shares in the capital of the Company
("Ramco Shares"), with the balance to be
satisfied by a further issue of Ramco Shares following the announcement of Ramco's preliminary
results for the year ended 31 December 2007.
The deferred consideration of up to £1 million becomes payable if certain milestones are
reached; £0.5 million becomes payable by Ramco
upon the spudding of the next well on the royalty acreage with the balance being payable when
cash flow from the royalty portfolio
commences.
The Company has today been informed that Lundin Petroleum AB ("Lundin") has commenced the
drilling of exploration well 21/8-4 on the
Torphins prospect located on block 21/8, under production licence P1107. This is a licence in
which Eagle holds a royalty interest of 0.54%
and consequently is the trigger for the first £0.5 million of deferred consideration. Ramco
has elected to satisfy the deferred
consideration through the issue of Ramco Shares. The shares will be issued at the average
closing mid-market price for the 15 business days
immediately prior to the issue of the shares. A further announcement will be made tomorrow
confirming the price, number and date of
admission to trading of the Ramco Shares to be issued.
Lundin has stated that well 21/8-4 is targeting the Palaeocene sandstone reservoir and
that the Torphins prospect is defined by a 3D
seismic anomaly. It estimates the unrisked gross potential to be approximately 30 million
barrels of oil equivalent (mmboe). The well is a
follow on to well 21/8-3, which was announced by Lundin as a discovery in November 2007.
23 June 2008
ENQUIRIES:
Ramco Energy plc
Steven Bertram Managing Director 01224 748480
John East & Partners Limited
Simon Clements / Bidhi Bhoma 020 7628 2200
College Hill
Nick Elwes 020 7457 2020
This information is provided by RNS
The company news service from the London Stock Exchange
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