Ramco Energy PLC
27 May 2003
May 27th 2003
RAMCO AND HELLENIC ANNOUNCE PARTNERSHIP FOR MONTENEGRO
Ramco Energy plc (Ramco), the Aberdeen based independent exploration and
production company and Hellenic Petroleum S.A. (Hellenic) of Greece, today
announce their joint plans for the exploration of their extensive acreage
Ramco has been involved with the Ulcinj block in the Adriatic since 1998, when
through its Medusa subsidiary it entered into a contract with the Montenegrin
State Oil Company, Jugopetrol Kotor (JPK). The original contract between Ramco
(51%) and JKP (49%) led to the acquisition of new seismic data, in 2000 to
supplement the extensive existing seismic and drilling data from earlier
exploration activity. The interpretation of this data led to the identification
of a number of potentially significant oil and gas leads and was a key factor in
Hellenic's decision to acquire an interest in JPK.
Hellenic acquired a majority share of JPK following last year's privatisation
process and their involvement comes at an important stage in the exploration
process, as a substantial number of sizeable prospects are being risked and
prioritised and a future work programme agreed. Under the original contract
Ramco was responsible for funding the exploration programme until a declaration
of commerciality. In order to accelerate the exploration programme Ramco has
agreed to transfer an 11% interest in the contract to JPK for a pro rata share
of past costs and JPK has agreed to fund its share of future costs after the
first well has reached its target depth and a decision made to test.
This year's work programme includes the acquisition of around 200 sq km of 3D
seismic over a shallow water area of high potential, thought to be gas bearing.
This would be followed in 2004 with a well to test the structure. There is an
option for a further Ramco funded exploration well if required.
Stephen Remp Ramco's Executive Chairman said 'We are delighted that Hellenic is
our new partner in Montenegro. Our own extensive technical studies supported by
recent gas discoveries and developments in the region reinforce our positive
view of the block. The involvement of Hellenic, a company with considerable
technical expertise combined with the regional knowledge and experience of JPK
will be a catalyst to accelerate the activity in this high potential acreage.'
Athanassious Karachalios Hellenic's Managing Director and CEO, added
'Our co-operation with Ramco, a company with such calibre, indicates once more
our continuous efforts to accelerate our involvement in the area of hydrocarbon
exploration and exploitation. This, in addition to our participation in other
similar projects, strengthens our confidence to meet the target of obtaining at
least 80 million barrels of proven reserves by 2006'.
Both companies welcomed the statement of the Minister of Economy Mr Darko
Uskokovic 'This project is very important for Montenegro. The Government of
Montenegro and Ministry of Economy are committed to supporting the
implementation of this project. If the results are positive an acceleration of
progress of the Montenegrin economy is expected and this will foster
Montenegro's joining the EU'.
Steven Bertram - Group Financial Director 01224 352 200
College Hill - Phil Wilson-Brown 020 7457 2020
This information is provided by RNS
The company news service from the London Stock Exchange