Steve Remp has won £500,000 backing from financiers for his plan to return Ramco Energy to its buccaneering roots by moving into the oil and gas business in strife-torn Iraq.

Remp, who led Ramco's exploration in Azerbaijan, followed by a disastrous move into production off Ireland, has raised the cash to help fund efforts to win services contracts ahead of possible bids for exploration licences.

The money, which it is believed was provided by a US institution, will be invested in a venture called Mesopotamia Petroleum Company. This was formed by Ramco and Midmar Energy, an oil and gas independent run by Peter Redman, a veteran of the international drilling business, which is diversifying away from production onshore England.

Chris Moar of Ramco said MPC was preparing to tender for contracts associated with improving output from Iraq.

The company has made contact with officials in advance of the government inviting tenders. Subject to the passage of a contentious oil and gas law by the Iraqi parliament, MPC hopes to be able to bid for exploration licences.

Remp has said that Alternative Investment Market listed Ramco's experience of operating in challenging areas like behind the old Iron Curtain should help in Iraq. He believes small players may be better placed to seize opportunities than giants.

However, confirming that MPC did not have personnel based in Iraq, Moar said it would initially try to rely on using Iraqi personnel to complete work in the country.

Following the funding injection, Ramco's holding in MPC has been cut from 49% to 32.66%. The remainder is held by Midmar and the new investor.

In June Ramco raised £2.6m to fund its continuing recovery from the Seven Heads venture in Ireland and a costly legal dispute by selling Irish exploration interests to an American hedge fund.

Aberdeen-based Ramco raised the money by selling to the LC Capital Master fund a 25% stake in the Lansdowne Oil & Gas subsidiary created to manage its acreage off Ireland. Run by New-York based Lampe Conway, the fund also has a 4.86% stake in Ramco.

Yesterday Ramco said Lampe Conway's Steve Lampe had joined its board as a non-executive director.

After booking a profit of £1.5m on the sale of Lansdowne shares. Ramco recorded a pre-tax profit of £127,000 in the six months to June. The company has no operating income.

Ramco retains a 61% stake in Lansdowne, which was recently awarded exploration licences over two of its assets off Ireland on which it is planning to drill key prospects.

Shares in Ramco closed 1p lower at 17p.