STOCKS NEWS UK-Ramco Energy slumps on blow to Iraq JV hopes

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09:02GMT 8Jul2009-Ramco Energy slumps on blow to Iraq JV hopes

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Shares in Ramco Energy ROS.L fall by over 40 percent after the Aberdeen-based oil explorer says its associate, the Mesopotamia Petroleum Company (MPC), missed a deadline for confirming funding was in place for its joint venture in Iraq with the state-owned Iraqi Drilling Company (IDC).

Under the terms of the deal, MPC was required to confirm it had funding of $44 million in place for initial drilling requirements in order to maintain its holding of 49 percent in the joint venture.

Ramco says the deadline passed without MPC having the funding in place and the IDC consequently terminated the agreement. However, MPC says it is entitled to an extension to the deadline and is continuing to work with its financial advisor, JP Morgan Cazenove to complete the fundraising.

"It's bad news and the share price reflects that," says one analyst who asked not to be named. "This is one of the risks of doing business in Iraq but, on the flipside, if they can pull it off there's a lot of potential upside."

To see Ramco's statement please click on [ID:nRnsH3087V]

Reuters messaging rm://matthew.scuffham.reuters.com@reuters.net

08:40GMT 8Jul2009-Miners outperform helped by upgrades

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