| OCTOBER 1999 - RELEASES |
WEEKLY ACTIVITIES UPDATE (27/10/99) |
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1. SALTFLEETBY GAS FIELD DEVELOPMENT (ROC 100%) The Saltfleetby Development Project was essentially completed during the course of the last week, except for pipeline realignment work that is required because of the minor soil settlement which was reported in last week's ASX release. Discussions with regard to the remedial work have continued with the operator of the Theddlethorpe Gas Terminal, which is where the soil settlement occurred. It is still expected that first gas will flow from the Saltfleetby Field during November, although, because of the soil settlement, production start-up is likely to be in the second half of the month. 2. SEISMIC ACTIVITY 2.1 Offshore Australia (ROC Farm-in Options) On 25 October 1999 the acquisition phase of the 2D Michelle Seismic Survey in the Offshore Perth Basin permits WA-286-P and TP/15 was completed without incident and within schedule and budget. A total of 551 km was acquired. 3. KYLE OIL FIELD DEVELOPMENT (ROC 12.5%) As a result of a Kyle Joint Venture meeting held on 22 October 1999, the following key points emerged: • As previously indicated by ROC's earlier releases to ASX, if the Kyle Field is produced via the Banff Ramform Floating Storage and Production Facility (Banff FPSO) first oil production from Kyle will be delayed into 2000, possibly late 2000. • The search for alternative development options has identified two potential early production systems. Because of the requirement for contractual agreements and Government approvals for an alternative development plan, and also for reasons relating to logistical and weather windows, it is ROC's view that even if an early production system is utilised at Kyle, it would not be prudent for the Company to expect first oil to flow before 2Q 2000. • A continuing technical review by the Kyle Joint Venture operator, Ranger Oil (UK) Limited has illustrated that the field's recoverable oil reserves may be larger than previously indicated. In ROC's opinion it would be preferable for the Kyle Joint Venture to determine whether or not this upside reserve potential is real prior to finalising the optimum development strategy for the field. A key step in this process, which has not been formally agreed by the Joint Venture, would be the drilling of an appraisal well on the northeastern flank of the Kyle structure. The Independent Expert's Report in ROC's Prospectus did not ascribe any reserves to the northeastern part of the Kyle structure. Subject to the results of the continuing technical review, the Kyle Joint Venture may consider drilling this northeastern well in early 2000. 4. THE BLANE OIL FIELD (ROC 15.2%) As a result of a Blane Joint Venture meeting held on 19 October 1999, the following key points have emerged: • A continuing technical review initiated by the Blane Joint Venture operator, Petrobras U.K. Limited (Petrobras), has highlighted the possibility that the field may have a tilted oil-water contact (OWC) which is a common feature of nearby oil fields. The implications of a tilted OWC at Blane could be significant. Previously, the different OWCs recognised in the two wells that have been drilled in the Blane Field had been taken to indicate that the reservoir was compartmentalised. However, a tilted OWC at Blane would imply significantly larger reserves and a more straightforward field development than has been assumed to date. Subject to the results of the current study being conducted by Petrobras, the Blane Joint Venture may consider drilling another well on the structure within 18 months rather than in 2005, which was the assumption used in ROC's Prospectus. 5. THE ETTRICK OIL FIELD (ROC 4.2%) As a result of an Ettrick Joint Venture meeting held on 20 October 1999, the key point to emerge is: • The operator of the Ettrick Joint Venture, Petrobras, has initiated a detailed review of the subsurface database and recommended that, until this review is complete, the Joint Venture should not contemplate an extended well test (EWT). Although it is expected that this review will be completed during 2000, ROC's preliminary view is that it would not be prudent for the Company to assume that an EWT will occur at Ettrick prior to the end of next year. If this revised schedule eventuates, it would represent a variance from the assumption in the Prospectus that Ettrick would be subject to an EWT in 2000. 6. ROC FARMS OUT PERTH BASIN INTERESTS (ROC FARM-IN OPTIONS) Following execution of its farm-in agreement with Premier Oil Australia Pty Ltd (Premier Oil) on 11 October 1999 (see ROC's ASX release dated 7 September 1999) ROC entered into discussions with two Perth-based companies, Woodside Energy Limited (Woodside) and Arc Energy NL (Arc), with regard to the construction of an optimum Joint Venture for exploring part of the offshore Perth Basin. Discussions have now progressed to a point where separate farmouts have been agreed in-principle between ROC and each of Woodside and Arc. Both transactions are subject to the satisfaction of normal industry terms and conditions, including the receipt of necessary formal approvals from relevant government authorities and co-venturers. The essence of ROC's farm-outs to Woodside and Arc is as follows: • As a flow-on from the farm-in option that ROC has executed with Premier Oil, Woodside and Arc will each earn, through ROC, an option to acquire a 15% interest in WA-286-P in the offshore Perth Basin. The commercial terms of the agreements between ROC and Woodside and ROC and Arc are similar and both agreements are broadly comparable to the agreement between ROC and Premier Oil. • In the event that both Woodside and Arc choose to exercise their respective options over WA-286-P, ROC will still be entitled to acquire from Premier Oil between 30% and 45% interest in that permit by funding between 40% and 60% of the next well which is expected to be drilled in late 2000, subject to the results of the recent Michelle Seismic Survey. • If Arc exercises its option to acquire equity in WA-286-P through its partial funding of the next well to be drilled in that permit, it will also earn an entitlement to acquire, through ROC, a 5% interest in the adjacent TP/15. In the event that Arc exercises this option over T/P15, ROC will still be entitled to acquire from Premier Oil an interest in TP/15 of between 10% and 20% by funding between 20% and 40% of the next well to be drilled in that permit. • According to its separate agreements with Premier Oil, Woodside and Arc, ROC will be entitled to become operator of WA-286-P if it exercises its option in relation to that permit, subject to receipt of relevant government approvals. A similar arrangement exists with regard to the operatorship of TP/15, although that arrangement is also subject to receipt of co-venturer approval. • Commenting on the farm-outs, ROC's Chief Executive Officer, Dr John Doran, stated that: "In conjunction with Premier Oil, ROC's strategy for the Perth Basin was to try to structure a well balanced Joint Venture for discovering and, hopefully, developing fields in the relevant permits. The transactions with Woodside and Arc go a long way towards achieving this goal. We look forward to seeing the results of the recently completed Michelle Seismic Survey and moving the project forward with our new co-venturers." 7. ACQUISITION OF A PRODUCTION SHARING CONTRACT (PSC) OFFSHORE SENEGAL, WEST AFRICA On 22 October 1999, representatives of ROC executed a PSC with the Government of Senegal in that country's capital, Dakar. The main elements of the transaction include: • Subject to formal ratification by the President of Senegal, which is expected prior to year end, ROC has acquired a 92.5% interest in, and operatorship of, a PSC area which covers three blocks, collectively referred to as the Casamance Blocks (Attachment 1). The Senegalese Government owns the balance of the equity and will be free carried by ROC through the exploration phase. • The PSC covers an area in excess of 8000 sq kms/1.98 million acres extending about 100 km offshore from the Senegalese coastline. Within the PSC area maximum water depth reaches in excess of 1000m but most of the area lies in water depths of less than 200m. The northern boundary of the PSC area is located about 190 kms south of Dakar. • The PSC terms have been designed to encourage international oil companies to explore offshore Senegal within a fiscal regime which is considered to be very attractive. • In accordance with the PSC terms, ROC has agreed to acquire 1500 km of 2D seismic and to reprocess up to 3000 km of existing 2D seismic during the next three years. • South of the PSC area there are two oil discoveries, Dome Flore and Dome Gea, associated with salt domes which appear to be comparable with salt domes which are known to exist in the PSC area (Attachment-1 & Attachment2). • The SF-4 well on the Dome Flore structure tested 34 degrees API oil from Upper Cretaceous sandstone, whilst the CM-9 well on the Dome Gea structure tested light oil from Miocene sands. In addition, wells on these salt features have also encountered heavy oil in the Oligocene and it has been estimated that this potential reservoir unit contains substantial volumes of in-place oil at Dome Flore. • Eight exploration wells have been drilled within the PSC area. Five of these wells, all drilled in the late 1960s and early 1970s, targeted traps related to the salt features. ROC believes that the lack of exploration success to date is attributable to the poor quality of the then available seismic which would have been inadequate to precisely define the drill targets. The new seismic planned by ROC will address this issue and provide better prospect definition. • Commenting upon the acquisition of the Casamance Blocks ROC's Chief Executive Officer, Dr John Doran, stated that: "Thanks to introductions to the Senegalese Government provided by some of ROC's founder private shareholders, the Company has had increasing contact with the relevant authorities in Dakar for more than 12 months. The first expression of this dialogue was the establishment of a Memorandum of Understanding (MOU) covering parts of offshore and onshore Senegal, as detailed in ROC's recent Prospectus. As a consequence of that initial contact, ROC was able to secure a second MOU over the Casamance area as referred to in the Company's release to ASX dated 10 August 1999. Therefore, the acquisition of a PSC over the Casamance Blocks is simply the latest logical outcome of ROC'S Senegalese strategy. "ROC believes that it has cost effectively acquired highly prospective acreage in a part of the world which has largely been overlooked by the international oil industry. ROC was encouraged by several factors including the existence of one or more working petroleum systems in the area, a host government which has a very positive attitude towards working with international oil companies, a modest mandatory work programme and the encouraging industry developments that have occurred elsewhere along the West African Coastline during the last decade. ROC intends to look at accelerating it's work programme in Senegal in order to test the petroleum prospect ability of the area in the nearer rather than longer term. In order to achieve it's goals within the desired timeframe, it is likely that, at an opportune moment, ROC will bring in a co-venturer to share the expenditure risk and potential reward." DR JOHN
DORAN For further
information please contact: |
WEEKLY ACTIVITIES UPDATE (20/10/99) |
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1. SALTFLEETBY GAS FIELD DEVELOPMENT (ROC 100%) Hook-up of the Saltfleetby "B" site facilities has been completed and commissioning activities are nearing completion. Hook-up of the Saltfleetby "A" site facilities are expected to be completed next week. Commissioning work is proceeding well at the reception facilities at the Theddlethorp Gas Terminal. The cost of constructing and commissioning the reception facilities is expected to be within 4% of the £3.23 million budget for this aspect of the Development Project. Settlement of the soil back-fill around the pipeline trench, near where it enters the Theddlethorp Gas Terminal, caused minor (40mm) mis-alignment of the pipeline flange and associated pipework. Remedial work is planned to re-align the pipeline which was undamaged by the slight ground movement. Last week, prior to the soil settlement, ROC had been informed by the contractor that it would be ready to receive first gas through the pipeline by tomorrow, ahead of the previously stated November target date. However, the remedial work which is now required, and the associated need to liaise with the owner of Theddlethorp Gas Plant and the project contractors, will move first gas production into November, which is consistent with forecasts in previous ROC releases to the ASX. 2. SEISMIC ACTIVITY 2.1 Onshore U.K. (ROC 100%) Processing of the Salteast 3D Seismic Survey, acquired over the area immediately east of the mapped limited of the Saltfleetby Gas Field, is scheduled to be completed during next week. 2.2 Offshore Australia (ROC Farm-in Option) The acquisition phase of the 600 km 2D Michelle Seismic Survey in the Offshore Perth Basin permits WA-286-P and TP/15 is scheduled to start today subject to weather. DR JOHN DORAN Chief Executive Officer For further information please contact: Dr John Doran on 61 2 8356 2000 |
WEEKLY ACTIVITIES UPDATE (13/10/99) |
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1. SALTFLEETBY GAS FIELD DEVELOPMENT (ROC 100%) The development of the Saltfleetby Gas Field is still proceeding on schedule. Pigging of the pipeline is underway. Hook-up of production skids is now complete. Pre-commissioning tests are being conducted. First gas is expected in November. 2. SEISMIC ACTIVITY 2.1 Mongolia (ROC 100%) The 1,035 km Jochi Seismic Survey in the Gobi Desert was completed on 7 October. Maximum daily recording rate was 27 km. The survey averaged almost 21 km/day compared to a 14 km/day average for the 1998 survey. 2.2 Australia (ROC Farm-in Option) The acquisition phase of the 600 km 2D Michelle Seismic Survey in the Offshore Perth Basin permits WA-286-P and TP/15 is scheduled to start next week. 3. PRODUCTION Average oil production from ROC's UK assets for the month of September 1999 was 2465 barrels of oil per day (bopd). Most (94%) of the production came from fields in the Welton area. Overall, ROC's UK oil production for September was in line with the equivalent figures for August. September production figures were adversely affected by the previously announced unscheduled workover of the single well Keddington Field (121 bopd less than forecast) and the single well Cold Hanworth Field (101 bopd less than forecast). Production from this latter well was also affected by an increase in water cut when the well was put onto a beam-pump. The previously announced deferment of workover activity in the Welton area, pending completion of engineering studies, also contributed to constrained Welton production (677 bopd less than forecast). As far as ROC's 12.5% interest in the Kyle Oil Field in the North Sea is concerned, there is no further significant information to communicate to shareholders since ROC's earlier release to the ASX dated 7 September 1999. ROC expects the Kyle situation to become clearer prior to the end of October. DR R.J.P. DORAN Chief Executive Officer For further information please contact: Dr John Doran on 61 2 8356 2000 |
ACTIVITIES UPDATE (5/10/99) |
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1. SALTFLEETBY GAS FIELD DEVELOPMENT (ROC 100%) The development of the Saltfleetby Gas Field is proceeding on schedule. Hook-up of production skids is nearing completion and pre-commission checks will begin this week. Construction of the gas reception facilities at Theddlethorpe are on schedule for the first gas in November. 2. SEISMIC ACTIVITY 2.1. UK Onshore (ROC 100%) The 30km 2D Seismic Survey over the Bag Enderby prospect area, to the south west of the Saltfleetby Gas Field, has been completed ahead of schedule and under budget. 2.2 Mongolia (ROC 100%) The 1,035km Jochi Seismic Survey continued in the Gobi Desert. As of Sunday 3 October a total of 960km (93%) of seismic had been acquired. Completion of the survey is forecast for next week. 2.3 Australia (ROC Farm-in Option) The 600km 2D Michelle Seismic Survey in the Offshore Perth Basin permits WA-286-P and TP/15 is scheduled to commence in mid October.
DR JOHN
DORAN For further
information please contact: |
