Ramco Energy, the troubled Scottish explorer, has appointed Ernst & Young to help it find a buyer for its 86.5 per cent interest in the Seven Heads gas field off the Cork coast.

The Aberdeen-based company has concluded extended waiver agreements with its bankers and with major creditor Schlumberger, the New York-based oil field services company which is owed £1.55 million (€2.33 million) by Ramco.

The banks have agreed to defer their loans in return for a total of three million warrants, with an exercise price of 34 pence per share, exercisable until June 30th, 2010.

In a similar arrangement, Schlumberger has agreed to defer Ramco's debt until asset sales have been successfully concluded.

Aside from finding a buyer for the Seven Heads field, Ernst & Young has been charged with identifying potential buyers for Ramco's other assets such as parts of its profitable oil services business.

However, analysts said that given the very poor production performance of Seven Heads and the debt hanging over the project, finding a buyer could take some time. "Any buyer will have to have a very good understanding of the project and opportunities available," said Davy analyst Job Langbroek. "This list is short."

Ramco, which is listed on London's Alternative Investment Market (AIM), has also raised £1 million after expenses through the placing of three million new shares at 34 pence each with institutional investors. The funds will be working capital to allow Ramco to focus on exploration.

"With these agreements in place, we are already focusing our attention on the future and looking to rebuild value through our portfolio of exploration prospects in Ireland, Bulgaria and Montenegro," Ramco's executive chairman, Steve Remp, said.

Aside from its interest in the Seven Heads field and in Bulgaria and Montenegro, Ramco has interests in Donegal and licensing options in Midleton, Rosscarbery and East Kinsale in Cork. Shares in Ramco closed 7p or 29 per cent higher at 31 pence last night.