Rockpool Acqui Regulatory News (ROC)

10 Oct 2006 07:01

Roc Oil Company Limited10 October 2006 10 October 2006 ROC OIL COMPANY LIMITED ("ROC") STOCK EXCHANGE RELEASE PRODUCTION UPDATE 1. C and D Oil Fields, Zhao Dong Block, Bohai Bay, Offshore China (ROC: 24.5% & Operator) Gross production from the C and D fields has been pared back from about 30,000barrels of oil per day ("BOPD") to 22,000 BOPD. This is a result of the fields'excellent performance during 2006 with recent daily gross production farexceeding the production level originally approved by the Government. TheGovernment's requirement that all production rates should strictly adhere to theapproved Development Plan has resulted in both fields being temporarily subjectto constrained production rates. ROC and its co-venturers, including PetroChina, which holds a 51% interest inthe Zhao Dong Block, are currently discussing the Annual Production Forecast for2007 in order to ensure that it appropriately reflects the fields' productivecapabilities. In the meantime, a proposal to expand the production capacity ofthe fields is being prepared for Government consideration so that production maybe restored to a higher level. The temporary reduction of production at Zhao Dong will not cause ROC to loseany reserves but rather it will defer a small portion of the Company'sproduction to a later stage of the fields' lives. Although in the immediate termROC's net production from Zhao Dong will be reduced by almost 2,000 BOPD,possibly until end-2006, ROC's company-wide production will reduce by about1,000 BOPD due to a partially offsetting recent increase in production at theCliff Head Oil Field, offshore Western Australia. Commenting on the situation, ROC's Chief Executive Officer, Dr John Doran,stated: "Western oil companies don't often come across the concept that oil productionmay need to be temporarily reduced because a field has out-performedexpectations. In fact, we are much more familiar with situations whereproduction is reduced because a field has under-performed. ROC greatly valuesits developing relationship with PetroChina and it fully recognises, that theGovernment has specific planning criteria which need to be reflected in the late2006 production profile at Zhao Dong." 2. Cliff Head Oil Field, Perth Basin, Offshore Western Australia (ROC: 37.5% & Operator) Recent gross oil production from Cliff Head has generally ranged between 11,000BOPD and 12,500 BOPD (ROC net: 4,125 BOPD and 4,687 BOPD respectively) with ahigh of 15,800 BOPD (ROC net: 5,925 BOPD). The range reflects intermittentdownstream constraints, most recently relating to trucking capacity, which arecurrently being addressed. 3. Chinguetti Oil Field, Offshore Mauritania (ROC: 3.25%) Gross Production from Chinguetti has recently averaged about 30,000 BOPD (ROCnet: ca 1,000 BOPD). Michelle ManookGeneral Manager - Corporate Affairs 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 (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