Selling the family silver to look for black gold
Article Date: Jul 19 2000AIM-listed Ramco continues to hit new two-year highs as it reaps the rewards of renewed investor interest. An announcement by the oil and gas explorer that it would start drilling its first well in Georgia in October has fuelled a share price rise of 10p to 485p, writes Roxanna Mohseni.
Only yesterday this cash rich outfit revealed that it had got a whole lot richer with the sale of its prized 2 per cent stake in the ACG oilfield offshore Azerbaijan. The shares leapt by a third as investors heard that the US$150 million, to be paid in instalments by another member of the ACG consortium, Amerada Hess, represented pure profit for Ramco.
The loss-making group added that the 'gain from this transaction will be included in the profit pool for the calculation of bonuses payable to certain of the group's directors for the year'. Ramco, which holds a portfolio of exploration and production rights in the Caspian, Central and Eastern Europe and, most recently, Ireland, also entered into a strategic alliance with Amerada Hess.
This gives it the first refusal on any projects for which Ramco seeks a partner. This privilege will last for three years.
Future developments will be analysed, where appropriate, in Growth Company Investor.
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