Gas reserves in the Seven Heads gas field off the Cork coast will be lower than expected, Ramco Energy admitted today.
The Aberdeen-based exploration and production company said it will reassess the reserves and postpone its full-year results announcement until early May, to allow an initial reassessment of reserves to be completed.
Third-party analysis of the Seven Heads reservoir data previously concluded the structure holds proven and probable recoverable reserves of 390 billion cubic feet of gas. The field was expected to supply more than 10 per cent of Ireland's gas needs for about 15 years.
Ramco holds a 86.5 per cent stake in the field, while Island Petroleum Developments Ltd holds 12.5 per cent and Sunningdale Oils (Ireland) Ltd 1 per cent.
Based on earlier estimates, Seven Heads was expected to transform Ramco's balance sheet, with revenues from the first year of gas sales estimated at about £36 million sterling and supply 10 per cent of the State's natural gas needs over the next decade.
AFP