Ramco has moved to continue the company's rebuilding process by making its first investment in North Sea exploration and production.

The Aberdeen-based oil and gas firm, renowned for making a big find in Azerbaijan, has acquired a portfolio of royalty interests in UK offshore blocks from a Kent-based firm, in a deal which is expected to help directors unearth opportunities further afield.

In exchange for an initial investment of up to £1.25m in shares or cash, Ramco will acquire royalty stakes in nine licences, including two on which discoveries have been made, from privately-owned Exploration Geosciences.

The investment will put Ramco in line for revenues from any of the licences on which finds are brought into production, without having to contribute towards the related exploration and development costs.

Since suffering heavy losses in an unsuccessful move into gas production off Ireland, Ramco has sold assets including a services business active in the North Sea to return to its roots as a frontier exploration specialist.

Revenues from North Sea assets could be used by the company to fund exploration overseas.

Under the terms of the deal, Ramco will also receive help from specialists at Exploration Geosciences in assessing its portfolio of assets and in identifying exploration opportunities outside the UK, focussing particularly on those areas with a low entry cost.

Ramco said that Mark Groves Gidney, managing director of Exploration Geosciences, would become a non-executive director of the firm next month, and would bring with him "extensive experience and technical knowledge".

A trained geologist, Groves Gidney has been involved in assessing the potential of areas stretching from the North Sea to Australia.

Shares in Ramco closed up 2.5p at 29p.