Last checked at 4 Aug 2009 07:00
4 August 2009
ROC OIL COMPANY LIMITED ("ROC")
STOCK EXCHANGE RELEASE
BASKER-MANTA-GUMMY ("BMG"): UPDATE
Anzon Australia Pty Ltd, a wholly owned subsidiary of ROC, provides an update on BMG Oil and Gas Field operations.
Drilling and Workover Programme
Production testing from the Basker-3 ("B3") well commenced on 1 August, following the successful installation of a multi-zone SMART completion, designed to optimise selective production from targeted Basker intra-Latrobe reservoirs. B3 is expected to produce at a rate of approximately 2,000 BOPD (ROC: 600 BOPD) on completion of the current reservoir clean up and testing programme.
The Basker-7 ("B7") development well is drilling ahead at a depth of 3,537 metres. The well target depth (3,950 metres) is expected to be reached during the coming week, ahead of schedule. B7 is expected to produce at a rate of approximately 3,000 BOPD (ROC: 900 BOPD) on successful completion of tie-in and commissioning activities in September.
Operational Update
The Basker-2 ("B2") well has been shut-in and isolated following identification of a minor leak on the subsea choke located on the Basker A manifold ("BAM") during normal production operations. The leak was isolated and relevant authorities were informed. A series of isolation and pressure tests have confirmed the BAM's operational integrity and production from other wells operating through the manifold is continuing.
Planning for repair of the B2 choke is underway. As previously advised, BMG will be offline for approximately eight weeks from mid-September for planned inspection and maintenance programmes and installation of a gas compressor package on the Crystal Ocean FPSO. This planned downtime will provide an operational window for B2 choke repairs. An Installation Support Vessel, which is scheduled to be on site to undertake B7 tie-in and commissioning activities in early September, is also being considered for use to accelerate B2 choke repairs.
BMG is now producing at an average rate of approximately 1,100 BOPD pending the successful completion of the B3 and B7 wells. Additional production from B3 and B7 wells is expected to increase the average rate to approximately 6,000 BOPD before the planned downtime in mid-September. On successful completion of B2 repairs, the average production rate is expected to increase to approximately 10,000 BOPD.
Participating interests in the BMG Joint Venture, subject to closing of the sale by ROC of a 10% participating interest to Pertamina, are as follows:
Anzon Australia Pty Limited (Operator).............................30%
Beach Petroleum Limited..................................................30%
CIECO Exploration and Production (Australia) Pty Ltd.....20%
Sojitz Energy Australia Pty Ltd..........................................10%
PT Pertamina Hulu Energi.................................................10%
ROC 2009 Production
ROC will provide an updated 2009 production forecast once the timing for repair of B2 is finalised and the current BMG drilling and workover programme is completed. However, ROC is now unlikely to achieve the 2009 production target of 11,000 BOEPD.
In accordance with ASX and AIM Rules, the information in this Release has been reviewed and approved by Mr Neil Seage, Chief Reservoir Engineer, Roc Oil Company Limited, BA, BEng (Hons), MBA and Dip App Fin. Mr Seage, who is a member of the Society of Petroleum Engineers, has more than 30 years of relevant experience within the industry and consents to the information in the form and context in which it appears.
Matthew Gerber
Manager
Investor Relations & External Affairs
For further information please contact:
Mr Bruce Clement
Chief Executive Officer
Tel: +61-2-8023-2000
Email: bclement@rocoil.com.au
Or visit ROC's website: www.rocoil.com.au
Michael Shaw
Oriel Securities Limited (Nominated Adviser)
Tel: +44 (0)20 7710 7600
Bobby Morse
Buchanan Communications
Tel: + 44 (0)20 7466 5000
Fax: + 44 (0)20 7466 5001
E-Mail: bobbym@buchanan.uk.com
Mob: +44 (0)7802 875 227