RNS Number:7435U
Ramco Energy PLC
28 January 2004

January 28th 2004

                      RAMCO SEVEN HEADS PRODUCTION UPDATE

Ramco Energy plc, the Aberdeen based exploration and production company and
Operator of the Seven Heads gas field in the Celtic Sea, announces a production
update for the field, which commenced production on December 13th 2003.

The Seven Heads gas field is adjacent to Ireland's largest producing gas field,
the Marathon operated Kinsale field. Seven Heads gas is being produced from five
sub-sea wells via a pipeline tied back to the Kinsale facilities.

Gas production from the Seven Heads field has averaged 61mmscf/d over the 45
days since production commenced; this includes a short period of commissioning.
Daily production peaked at 76 mmscf/d on December 29th 2003.

A decline in flowing wellhead pressures was expected once production had
commenced, but the pressure declines observed to date have been greater than
anticipated. There are a number of possible explanations for the drop in
pressure and plans are being implemented to acquire additional information to
assist in diagnosis and identification of solutions. Initial indications, from
water samples recovered at the platform, suggest that the field is producing a
small amount of formation water which is building up in the well bores making it
more difficult to produce the gas.

The impact of recent cold weather on the gas production system pressures has
exacerbated our declining flowing pressures and as a result the Seven Heads
partners were unable to produce their full nominations for gas supply on January
27th. The Seven Heads partners have available backup arrangements, which rely on
importing gas from Scotland through the interconnector to Ireland, to meet any
shortfall.

The Seven Heads partners are Ramco (Operator) 86.5%, Island Petroleum
Developments Limited
(a subsidiary of DNO ASA) 12.5% and Sunningdale Oils (Ireland) Limited 1.0%.


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
James Henderson 020 7457 2020



                      This information is provided by RNS
            The company news service from the London Stock Exchange

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