Ramco Energy PLC 31 January 2005 31st January 2005 RAMCO AND PARTNERS GRANTED FRONTIER EXPLORATION LICENCE OFFSHORE DONEGAL, IRELAND Ramco Energy plc (Ramco), the Aberdeen-based exploration and production company announces that its wholly owned subsidiary, Ramco Donegal Limited (RDL) and its partners have been granted a frontier exploration licence (1/05) over 408 sq km (101,000 acres) around 70 kms from the north western coast of Ireland. The licence covers Block 13/7 and part blocks 13/11 and 13/12. Ramco, Sunningdale Donegal Basin Limited (Sunningdale) and Lundin Exploration B.V. (Lundin) had previously held, through respective affiliates, a licensing option (00/02) over this area and have already completed an extensive technical evaluation programme which has identified a number of drillable targets. The largest of these, Inishbeg, is a four-way dip-closed anticlinal structure and lies in a water depth of approximately 320ft. Island Oil and Gas plc (Island) and Petroceltic International plc (PIP) have agreed to farm in to the exploration licence by carrying dry hole and testing costs of an exploration well for RDL and Sunningdale. Farm in agreements have been signed, and a Joint Operating Agreement is currently being drafted, reflecting interests in the licence as follows: RDL 19.25% (carried through an exploration well), Lundin (Operator) 35%, Island Assets Porcupine Limited (a wholly owned subsidiary of Island) 26%, Lerida Trading Limited (a wholly owned subsidiary of PIP) 16.25%, Sunningdale 3.5% (carried through an exploration well). Under the terms of the frontier exploration licence, which runs for 15 years, it is planned that an exploration well will be drilled during 2005, targeting the Triassic Sherwood Sandstone reservoir in the Inishbeg prospect. The Sherwood Sandstone is the productive reservoir in the Corrib Gas Field, which lies on trend to the southwest, and is currently under development. ENQUIRIES: Ramco Energy plc - Aberdeen Steven Bertram, Group Financial Director 01224 352200 College Hill - London Ben Brewerton 020 7457 2020 Fleishman-Hillard Saunders - Dublin Michael Parker 00353 1 618 8450 This information is provided by RNS The company news service from the London Stock Exchange