Rockpool Acqui Regulatory News (ROC)

17 Nov 2005 07:03

Roc Oil Company Limited17 November 2005 17 November 2005 ROC OIL COMPANY LIMITED ("ROC") STOCK EXCHANGE RELEASE ACTIVITY UPDATE: GENERAL KEY POINTS • Four plus four month drilling rig contract underway, offshore Western Australia. • Aggressive, company-wide, exploration and appraisal drilling programme: up to 7 wells in the next 4 1/2 months. • Pipeline installation, a key element in the Cliff Head Oil Field Development Project, successfully completed. • Pioneering 2D and 3D seismic surveys onshore Angola successfully completed. 1. Offshore Western Australia: Eight month drilling rig contract underway In late October 2005, ROC commenced a 4 plus 4 month drilling contract withEnsco Australia Pty Ltd when it received the jack-up drilling rig, Ensco 67.Following the drilling of the first well under this contract, Flying Foam-1, inthe northern part of the offshore Perth Basin, the rig is relocating to theCliff Head Oil Field where it is expected to arrive in the next 3 to 6 days. The Ensco 67 will play a key role in the development of the Cliff Head OilField. During the next 4 months the rig will drill and complete 6 productionwells and 2 water injection wells and also install the production jacket andtopside facilities. After the Ensco 67's work at Cliff Head has been completedthe rig will drill 3 to 5 exploration wells in the area around the Cliff HeadOil Field. Importantly, the rig contract is structured so that ROC has an option to extendit for a second 4 month tranche beyond the initial 4 month firm contract period.Therefore, as the Ensco 67 completes its presently designated work programme atCliff Head, ROC will have the right, but not the obligation, to use the rig onother ROC-operated wells offshore Western Australia, including any farminopportunities which may arise. 2. Company-wide drilling programme Attachment 1* is the latest update of ROC's company-wide drilling programme forthe period mid-November 2005 to March 2006: up to 7 exploration and appraisalwells in the next 4 1/2 months. The main change since the previous programme wasdistributed is: • Wells tentatively scheduled for deep water Equatorial Guinea and onshore New Zealand, previously highlighted as being particularly susceptible to delay due to the tight rig market, will not be drilled prior to April 2006 because of the lack of suitable rigs. 3. Cliff Head Oil Field: Pipeline activities completed The pipelines, power cable and umbilical (collectively the "pipeline")construction and installation elements of the Cliff Head Oil Field Developmentwere successfully completed on 15 November. In contrast to the traditional approach to such projects, which would normallyinvolve the appointment of a single, over-arching pipeline contractor, allcomponents of the pipeline operation were directly contracted by ROC, asOperator of the Cliff Head Joint Venture. In order to expedite this contractstrategy ROC structured a special purpose third party pipeline managementcompany staffed with a team of highly experienced individuals, recruited fromthe pipeline industry, headed by Mr Peter Cox, reporting directly to ROC's CliffHead Project Manager, Mr Duncan Mitchell. As a consequence of this arrangement, ROC was responsible for all phases ofpipeline construction and installation, including the direct purchase ofmaterials, the leasing and manning contract services of the pipelay barge spreadand accommodation vessel, and the management and supervision of theonshore-offshore pipeline installation, including the under-beach horizontaldrilling which was designed to minimise the environmental impact of the project.The pipeline project was completed a few weeks later than originally scheduled,mainly due to weather downtime with the pipelay vessel. Fortunately, this delay,which has not affected the overall Cliff Head project schedule, still allowedthe pipeline phase of the project to be completed just as the crayfishing seasonstarted offshore Dongara. 4. Angola: 2D and 3D seismic surveys completed Roc Oil (Cabinda) Company, a wholly owned subsidiary of ROC, Operator of theCabinda South Block, onshore Angola, is pleased to advise that it has completedits 2005 seismic programme. Over a five month period, 162 sq km 3D seismic and505 km 2D seismic were acquired. The surveys represent the first substantialexploration activity to take place onshore Angola for more than 30 years. The 3Dsurvey was a "first" for onshore Angola. The seismic was acquired by theGeophysical Institute of Israel while matters related to explosive ordnancedisposal were undertaken by Demining Enterprises International (Pty) Ltd. At theheight of survey activity almost 300 people were employed, the vast majority ofwhom were locals. Preliminary results of the seismic processing confirm that data quality isgenerally good to excellent and there is an abundance of structuring, althoughit is too early to tell how many of the structures represent valid closuresworthy of drilling. The Cabinda South Joint Venture plans to undertake another substantial seismicsurvey next year ahead of a multi-well exploration drilling programme. Thisdrilling programme is currently targeted to start in late 2006, subject to onsetof the year-end rainy season, rig availability and the results of the seismicinterpretation which has just begun. CEO's Comments Commenting on the various activities referred to above, ROC's CEO, Dr John Doran, stated that "ROC's activity level remains very high and important individual operationalmilestones are being achieved. It is particularly pleasing to have safelycompleted both the seismic programmes onshore Angola and the pipeline operationsoffshore Western Australia. While ROC's future drilling programme will - like every other drilling programmein the industry - remain sensitive to the tight rig market which currentlyprevails, the signing of a 4 month plus 4 month optional drilling contract withmore rig capacity than is presently required, strengthens ROC's strategicposition with regard to drilling opportunities offshore Western Australia." *Attachment 1 is avaiable with the copy of this release on ROC's website.(http://www.rocoil.com.au/Pages/ASX_Releases/2005_Releases/November-2005.html) 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