Rockpool Acqui Regulatory News (ROC)

14 Feb 2005 07:01

Roc Oil Company Limited14 February 2005 14 February 2005 ROC OIL COMPANY LIMITED ("ROC") STOCK EXCHANGE RELEASE ROC KICKS-OFF RECORD A$50 MILLION DRILLING PROGRAMME FOR THE BALANCE OF 2005 KEY POINTS During the balance of 2005, ROC expects to drill up to 34 wells, 12 (35%) ofwhich will be operated by the Company. With an anticipated net cost to ROC inthe order of A$50 million this is a record level of drilling activity for theCompany, both in terms of number of wells to be drilled and magnitude ofinvestment. The programme will span six countries and a range of differentdrilling environments from deep water offshore West Africa to onshore wells inthe UK and New Zealand. Nineteen (56%) of the wells relate to oil fielddevelopments offshore Mauritania, in the UK North Sea and, subject to FinalInvestment Decision, offshore Western Australia. -------------------------------------------------------------------------------- Attachment 1* summarises ROC's current expectations regarding its drillingprogramme for the balance of 2005. This programme effectively commenced onSaturday, 12 February when ROC, as operator of the Cliff Head Oil FieldDevelopment Project, received the ENSCO 56 jack-up drilling rig for tow to theCliff Head-5 location where drilling is expected to start on/about 18 February2005. It is important to note that all drilling programme forecasts are inevitablysubject to change according to rig availability, logistics, government approvalsand/or Joint Venture decisions. Attachment 1 should, therefore, be regarded as adirectional guide to ROC's drilling activity for the balance of the year ratherthan a definitive, unchanging, prediction. The main points to note are: • ROC expects to participate in the drilling of a record 34 wells. • The total cost of the programme, net to ROC, is expected to be in the order of A$50 million: a record investment by the Company. • Nineteen (56%) of the wells will relate to the development of the Chinguetti Oil Field, currently underway offshore Mauritania, the Ardmore Oil Field in the UK North Sea, which is also underway, and, subject to Final Investment Decision anticipated by early March 2005, the Cliff Head Oil Field, offshore Western Australia. • If the Chinguetti and Cliff Head development programmes are completed on schedule it is expected that, within the next twelve months, ROC's production will increase from zero to about 8,000 BOPD. This is without reference to the Company's option over up to 26% of the Ardmore Oil Field in the North Sea which, subject to successful development drilling, could add a net 2,000 to 3,000 BOPD to ROC's entire 2005 and early 2006 production. • ROC will operate 12 (35%) of the wells. • Drilling activity will be spread between six countries and seven regions: onshore England; UK North Sea; West Africa, specifically deep water Mauritania and Equatorial Guinea; shallow waters offshore China and offshore Australia and onshore New Zealand. • Each of the 15 exploration/appraisal wells is expected to have the potential to add at least several million barrels to ROC's net proved and probable reserves - and some of those wells have the capacity to add a lot more. Commenting on the 2005 drilling programme, ROC's chief Executive Officer, DrJohn Doran stated that: "During the last couple of months the transactional side of ROC's activities hasbeen in the ascendancy with the sale of the Saltfleetby Gas Field, the purchaseof an option over the Ardmore Field in the UK North Sea and the placement ofshares at a premium to market price. While ROC expects to continue toparticipate in other value-adding transactions during 2005, one of the otherelements which will characterise the balance of the year will be a record levelof drilling activity." *For Attachment 1 see copy of this release on ROC's website(http://www.rocoil.com.au/Pages/ASX_Releases/2005_Releases/February-2005.html) Dr John DoranChief Executive Officer For further information please contact: Dr John Doran on Tel: +61-2-8356-2000 Fax: +61-2-9380-2635 E-mail: jdoran@rocoil.com.au Or visit ROC's website: www.rocoil.com.au Dr Kevin Hird General Manager Business Development Tel: +44 (0)207 586 7935 Fax: +44 (0)207 722 3919 Email: khird@rocoil.com.au Nick Lambert Bell Pottinger Corporate & Financial Tel: +44 (0)207 861 3232 This information is provided by RNS The company news service from the London Stock Exchange