Shares in Ramco Energy jumped nearly 60% higher yesterday on hopes of winning business in Iraq.
The Aberdeen-based energy investor said yesterday it noted its recent share price movements and media reports surrounding its associate firm, Mesopotamia Petroleum Company (MPC).
Reports have linked MPC, in which Ramco holds a 32.66% interest, to the establishment of a joint venture with the state-owned Iraqi Drilling Company (IDC).
Ramco said yesterday that MPC had been in talks over a joint venture to provide oil services with IDC, under a mandate from Iraq’s oil ministry, for a considerable time and these had reached an advanced stage. MPC said it was pleased to see positive reported comments from Iraqi oil minister Hussein al Shahristani. It added, however, the establishment of the joint venture was still being finalised and required ratification, saying that a further announcement would be made in due course.
Steve Remp, chairman of Ramco, said: “As chairman of MPC, I am delighted that we have made such substantial progress during recent meetings in Istanbul.
“This services joint venture is designed to accelerate Iraq’s own efforts to boost its production in the near term. We look forward to early ratification so that we can get on with the task at hand.”
Meanwhile, Bournemouth-based Midmar Energy, which holds 32.67% of MPC, said separately it could confirm plans to launch a joint venture in Iraq. Its statement came after positive indications for the move from Mr Shahristani and IDC director general Idriss al Yasseri.
Midmar managing director Thomas Redman said: “We look forward to the opportunity to work with them in supporting the future development of the country’s expertise and its oil and gas resources.”
MPC is also partly owned by a private investor.
Shares in Ramco surged yesterday by more than 59% or 21p to 56.5p.
The group’s shares have been as low as 15.5p in the past 52 weeks, although also as high as 81p, however, Ramco shares still have a long way to go to return to the price of nearly £5 seen at the start of this decade.
Oil prices fell yesterday after a US government report showed larger-than-expected increases in stocks of petrol and distillates and as concern eased that Hurricane Dolly would hit crude supplies from the Gulf of Mexico.
US crude for September delivery fell $3.98 to settle at $124.44 a barrel, while Brent crude in London was down $4.26 to $125.29.