Rockpool Acqui Regulatory News (ROC)

29 Jul 2005 07:01

Roc Oil Company Limited29 July 2005 ROC OIL COMPANY LIMITED (ABN 32 075 965 856) REPORT TO SHAREHOLDERS Activities for the Quarter Ended 30 June 2005 SUMMARY Almost 80% of the reported Quarterly expenditure of $25 million was spent onoilfield development projects. Both the Chinguetti and Cliff Head oil fieldscontinued their progress towards first production in 1Q2006. Immediatelysubsequent to quarter end, the Blane and Enoch fields in the North Sea alsomoved into development mode with first oil targeted for 4Q2006. A significantseismic survey commenced in Angola, which marked the return of onshore oilexploration activities to that country after an absence of more than 30 years.During July ROC's share price reached a record closing high of $2.30, equivalentto a market capitalisation of about $430 million. -------------------------------------------------------------------------------- HIGHLIGHTS AUSTRALIACliff Head Oil Field Development, Four months after project sanction, withoffshore Western Australia, on 75% of the $227 million budget committedtarget for 1Q2006. and 40% of the non-drilling activity completed, the development remains within budget and on schedule. Farmin to WA-351-P offshore A farmin to a BHP Billiton-operated areaWestern Australia. offshore Western Australia will provide ROC with a 20% interest in the very large, but very high risk, Jacala Prospect. Exploration success at Jacala would be a company-changing event. WEST AFRICAChinguetti Oil Field Development, All 12 development wells have now beenoffshore Mauritania, continues drilled as this major deep water project,towards targeted first production with a gross budget of towardsduring 1Q2006. US$700million/A$920million(1), including contingencies, moves towards production. Multi-well exploration programme, Following joint venture agreement regardingoffshore Mauritania, agreed. the location of the next three exploration wells, drilling activity offshore Mauritania is expected to start in 3Q2005. A very significant seismic survey The start of a combined 2D and 3Dbegins onshore Angola. ROC-operated seismic survey marked the resumption of onshore oil exploration activity in Angola after a hiatus of more than 30 years. NORTH SEABlane Oil Field moves into the Subsequent to Quarter-end, the £165million/development phase. A$391 million(2) Blane Field development is now underway following receipt of UK and Norwegian Government approvals. Enoch Oil and Gas Field moves Subsequent to Quarter-end, the £75million/into the development phase. A$178 million2 Enoch Field development received project sanction following receipt of approvals from the UK and Norwegian Governments. Financing of the redevelopment of As a result of the appointment of anthe Ardmore Field terminated. Administrative Receiver to Acorn North Sea Limited, ROC expects to recover in excess of $2.5 million from the Ardmore project, approximately 25% of the Company's investment in the project. CHINANegotiations continue regarding The Overall Development Plan for thefield development, offshore Wei-12-8 West Field in Block 22/12 in theChina. Beibu Gulf is nearing completion as ROC and its co-venturers continue to liaise closely with the regional subsidiary of the giant Chinese oil company, CNOOC, in an effort to determine whether or not the field merits commercial development. CORPORATEAustralian-International Consistent with Australian accountingfinancial reporting standards requirements, ROC has adopted A-IFRS. Whileadopted. this change does not have any material effect on ROC's cash flow, business practices or activities it will be reflected in the Company's 2005 profit statement. For example, as a result of adopting the new standards ROC's reported after tax profit on the December 2004 $110 million sale of the Saltfleetby Gas Field in the UK will increase from about $70 million to $81 million. Hedging strategy completed. The purchase of options over 200,000 barrels at US$40/bbl Brent completes ROC's hedging strategy by providing it with a price floor while at the same time maintaining the Company's exposure to the spot market. With cash and receivables of Almost 80% of the Company's reported $25A$154 million at Quarter-end, ROC million expenditure incurred during theremains well funded and Quarter was spent on field developmentdebt-free. activities. For a copy of ROC's complete 2Q2005 Report, please see our website:http://www.rocoil.com.au/Pages/Company_Reports/company-reports.html For further information please contact:Michelle Manook Dr John DoranGeneral Manager - Corporate Affairs Tel: +61-2-8356-2000Tel: +61-2-8356-2096 Fax: +61-2-9380-2635Fax: +61-2-9380-2066 Email: jdoran@rocoil.com.auEmail: mmanook@rocoil.com.au Or visit ROC's website: www.rocoil.com.au Dr Kevin Hird General Manager Business Development Tel: +44 (0)207 586 7935 Fax: +44 (0)207 722 3919 Email: khird@rocoil.com.au Nick Lambert Bell Pottinger Corporate & Financial Tel: +44 (0)207 861 3232 ------------------------------ (1) Please note: basic project expenditure is in US$ converted in this report to A$ at the current exchange rate = 0.76(2) Please note: basic project expenditure is in pounds sterling converted in this report to A$ at the current exchange rate = 0.42(3) Please note: basic project expenditure is in pounds sterling converted in this report to A$ at the current exchange rate = 0.42 This information is provided by RNS The company news service from the London Stock Exchange