Ramco has Seven Heads bidder after services MBO
NICK BEVENS
BUSINESS EDITOR
RAMCO, the oil exploration and development firm, yesterday sold the oil services division on which it was founded 28 years ago, in a move which helps ease its recent financial worries.
The AIM-listed Aberdeen-based firm concluded the sale of the division for £14.1 million to a management buy-out team led by the managing director of that business, Stewart Cumming.
Ramco's group managing director, Steve Bertram, said he now hoped to conclude the next stage in the firm's overall recovery from near-bankruptcy earlier this year, with the crucial sale of its Seven Heads gas field in the Celtic Sea. Bertram said he was "very hopeful and now close" to achieving that, adding: "The sale of the gas field should go through early in the New Year and we are at the preferred bidder stage."
He refused to reveal who the likely buyer for Seven Heads might be, but recent speculation has suggested US oil giant Marathon, which operates the neighbouring field, is favourite.
The company's exploration plans will then centre on a gas field in Donegal Basin, and four other blocks in the Irish Sea, as well as interests in Bulgaria and Montenegro, said Bertram.
Ramco was forced into what was effectively a fire sale of its assets following production problems on Seven Heads and the collapse of a subsequent takeover offer with an unnamed suitor at the end of April.
The Seven Heads project was backed by a near £70m loan facility from Bank of Scotland. Although most of the debt was secured against production from the field itself, £12m was borrowed against the service company, and the MBO will now allow that to be paid off.
Finance for the deal has come from Edinburgh-based Teasses Capital Finance.
This article:
Last updated: 21-Dec-05 01:23 GMT
Delivery formats for "Energy & Utilities"
[more info]
Ojsc Rostelecom Ads stock quotes
Ojsc Rostelecom Ads stock charts
Follow this thread
