Previous estimates were 304 bcf of proven and probable gas reserves in the field, of which DNO's share was 38 bcf, corresponding to 6.3 million barrels of oil equivalent.
The assessment of the well results from the production wells drilled in the Seven Heads gas field substantially increased Gas Initially In Place. Furthermore, test results have enabled a more accurate prediction of recoverable reserves. Based on these results, Exploration Consultants Limited ("ECL") prepared a preliminary reserves upgrade as shown above. Ramco expects to be able to announce formal results in September.
The total flow rate from five production wells is 102.6 mmscf/d ("million standard cubic feet per day"), which is significantly above the planned plateau production.
The operator and partners in the Seven Heads field have concluded separate gas sales agreements with Innogy Ireland Limited. The nominated gas sales volume for the first contract year (1 October 2003 to 30 September 2004) is 60 mmscf/d of which DNO's share is 7.5 mmscf/d, corresponding to approx. 1,250 barrels of oil equivalent per day.
DNO holds a 12.5 per cent interest in the Seven Heads field through its wholly-owned subsidiary Island Petroleum Development Limited ("IPDL").
Reference is also made to Ramco's own press release and to Ramco's website www.ramco-plc.com.