Rockpool Acqui Regulatory News (ROC)

21 Jul 2005 07:01

Roc Oil Company Limited21 July 2005 21 July 2005 ROC OIL COMPANY LIMITED ("ROC") STOCK EXCHANGE RELEASE ACTIVITY UPDATE: CLIFF HEAD OIL FIELD DEVELOPMENT PROJECT KEY POINTS • The Cliff Head Oil Field Development Project in the offshore Perth Basin, Western Australia, remains within budget and on schedule for first oil production during first quarter 2006. • Four months after project sanction 75% of the A$227 million budget committed and about 40% of the engineering procurement, construction and installation part of the project completed. 1. PROJECT ROC's wholly-owned subsidiary Roc Oil (WA) Pty Ltd, Operator of the Cliff HeadOil Field Development Project is pleased to provide the following update withregard to the project's progress. • The project remains on schedule for first oil production during the first quarter 2006. • Approximately 75% of the A$227 million budget has been committed and the engineering procurement, construction and installation (ie non-drilling) part of the project is about 40% complete. • There are no outstanding material steel purchases to be made. All primary and secondary steel has been delivered to the jacket and deck fabrication site in Malaysia and all line pipe has been bought and coated. • The Field Development Plan and an application for a Production Licence have been submitted to the relevant Government authorities in Western Australia and Canberra. Timely receipt of regulatory approvals continues to be an important element of the project's schedule and, in this regard, ROC continues to work closely with the relevant Government authorities. • At the onshore Arrowsmith Plant, 18km south of Dongara, the two onshore pipelines have been fully welded and trenching and laying is about to commence. Horizontal directional drilling of the beach crossings for the pipelines is in progress. • The ENSCO 67 jack-up rig is still scheduled to arrive on site in late October 2005, to install the wellhead platform and deck prior to commencing the drilling of the development wells. • Jacket and deck fabrication has progressed well and remains on schedule for load out during the first half of October 2005. • The accommodation barge and the pipeline lay barge, both presently in Indonesia, have been engaged and are due on site in September 2005. • Other key elements of the Cliff Head project include the manufacture of down hole pumps in the United States, power generators in Austria and pressure vessels and chemical injection equipment in Australia, all of which are also on schedule. • ROC continues to liaise very closely with the local community in and around Dongara and has commenced recruitment of local staff for the operational and maintenance aspects of the production phase of the project. Cliff Head production will be managed by Mr Barry Ashwin who will be based in Perth. Mr Ashwin has more than 20 years of relevant industry experience mainly in senior production and operating positions with BHP Billiton. Most recently, Mr Ashwin was Production Manager for Arc Energy's operations in the north Perth Basin. 2. CEO'S COMMENTS Commenting on the current status of the project, ROC's Chief Executive Officer,Dr John Doran stated that: "Until first oil production is achieved, every offshore field developmentproject is best viewed on a one-day-at-a-time basis and the Cliff HeadDevelopment Project is no exception. Progress to date has been good, but withless than nine months to go before targeted production start-up we shouldn'tgloss over the significant amount of work that still remains to be done. None ofthe project's 300 workforce, located in various parts of the world, is under anyillusion about the importance of this project to the participants - particularlythe three small to medium sized Australian companies which collectively own 71%of the project. Everybody will need to stay fully focussed if both the scheduleand budget are to be achieved". 3. JOINT VENTURE The Cliff Head Joint Venture comprises Equity Roc Oil (WA) Pty Ltd (Operator)...........................37.5% AWE Oil (Western Australia) Pty Ltd ......................27.5% Wandoo Petroleum Pty Ltd .................................24.0% Voyager (PB) Limited.......................................6.0% CIECO Exploration and Production (Australia) Pty Ltd ......5.0% Michelle Manook For further information please contact:General Manager - Corporate Affairs 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 (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