Rockpool Acqui Regulatory News (ROC)

4 Sep 2007 07:02

Roc Oil Company Limited04 September 2007 4 September 2007 ROC OIL COMPANY LIMITED ("ROC") STOCK EXCHANGE RELEASE ACREAGE ACQUISITION: ROC FARMS INTO VLAMING SUB-BASIN, OFFSHORE PERTH ROC is pleased to advise that its wholly-owned subsidiary Roc Oil (WA) PtyLimited has executed a Farm-in Agreement with Lempika Pty Limited, Emphazise PtyLimited and Westralian Petroleum Limited with regard to adjacent explorationpermits WA-381-P and WA-382-P ("the Permits") in the Vlaming Sub-Basin, offshorePerth (Attachment 1*). 1. THE FARMIN Subject to government approval, ROC has acquired an initial 20% interest in thePermits and has been granted a further two options that can be exercised byfunding a staged work programme. Specifically: • ROC has agreed to acquire a 20% interest in the Permits and be appointed Operator by funding 100% of A$2 million pre-seismic exploration activity. • The second stage option to acquire an additional 20% interest in the Permits requires ROC to fund a A$5 million 2D/3D seismic programme. Subject to the availability of seismic vessels, ROC and its co-venturers intend to move as quickly as possible to acquire seismic in order to allow the Joint Venture to consider the details of its 2008-2009 drilling strategy. • If ROC elects to exercise the final option, it will be required to pay 100% of an exploration well in one and/or both Permits up to a cost of A$15 million per well, for an additional 40% interest in the Permit in which the well is located. On the above basis, if ROC exercised all options it will acquire an 80% interestin the Permits in consideration for funding of A$37 million work programme. 2. THE AREA The Permits are located approximately 35 km west of Perth in Commonwealth watersand cover 4,540 sq km (Attachment 1). Water depths range from 15 metres to 1500metres. The key attractions of the area include: • Access to both gas and oil infrastructure in the Kwinana-Perth area; • Several different oil and gas plays are recognised in the area which appear to have all the characteristics necessary to generate and trap oil and/or gas accumulations. Seismic data acquired between 1975 and 2004 indicate the presence of a number of structural leads and prospects which will be covered by the proposed 2D/3D seismic data; • Hydrocarbon source is not thought to be a major problem because five of the seventeen exploration wells drilled in and around the Permits recorded oil and/or gas shows with one well, immediately to the north, recovering approximately 100 barrels of light oil; • Wells drilled to date indicate good quality reservoirs to a depth of approximately 3,000 metres; and • The presence and extent of a competent cap rock was considered to be the main technical challenge in the Permits but a recent extensive review has provided better and more positive insights into this aspect of the petroleum system in this part of the Vlaming Sub-basin. 3. THE JOINT VENTURE The initial interests in the Area will be: Roc Oil (WA) Pty Limited (Operator)........20%Westralian Petroleum Limited...............40%Lempika Pty Limited........................20%Emphazise Pty Limited......................20% 4. CEO'S COMMENTS Commenting on the farm-in, ROC's Chief Executive Officer, John Doran, statedthat: "The Vlaming Sub-basin sits slap bang in the middle of ROC's core competency. AsOperator, the Company led the Joint Venture that discovered and developed theCliff Head Oil Field, in the environmentally sensitive Perth Basin, some 350 kmto the north. One of the hallmarks of the Cliff Head Development was ROC's closeliaison with the local community, particularly the crayfishing industry, toensure that the environmental footprint is minimal and that the Company'sactivities recognise and respect all interested parties. Quite bluntly, ourCliff Head experience provides a really good case history as to how wellindustry-community liaisions can work if all the relevant parties are directlyinvolved from the outset. ROC has been reviewing the prospectivity of the Permits since early 2006 andtherefore, it is particularly pleasing to be able to structure a mutuallybeneficial arrangement with the farmors without ROC committing to a well untilmore information is available." * For a copy of Attachment 1, please see release on ROC's website.(http://www.rocoil.com.au/Public/Announcement/2007/Acreage_Acquisition_ROC_Farms_Into_Vlaming_Sub-Basin,_Offshore_Perth_040907.aspx) Damian FisherGeneral ManagerExternal Affairs & Investor Relations For further information please contact: Dr John Doran on Tel: +61-2-8356-2000 Fax: +61-2-9380-2635 Email: jdoran@rocoil.com.au Or visit ROC's website: www.rocoil.com.au Dr Kevin Hird General Manager - Business Development Tel: +44 20 7495 5707/+61 2 8356 2000 Mob: +44 775136 7149/+61 417 261 727 Email: khird@rocoil.com.au Michael Shaw Oriel Securities Limited (Nominated Adviser) Tel: +44 (0)20 7710 7600 This information is provided by RNS The company news service from the London Stock Exchange