ONSHORE UK (ROC 100%)

As of 06:00 am on 27 April, the Keddington 2 well had been drilled to a total depth of 1,194 metres and was drilling ahead in 9 7/8 inch hole. The well is to be drilled to a total depth of 2700 metres (2194 metres TVD) including a 400 metre horizontal section, and is targeting basal Westphalian Sandstones.

Dr John Doran
Chief Executive Officer
E-mail: jdoran@rocoil.com.au

Return to ASX Releases main page

DRILLING OPERATIONS - ONSHORE UK (ROC 100%)

As of 06:00 am on 19 April, the Keddington 2 well had been drilled to a total depth of 578 metres. Well operation at that time was pulling out of hole in preparation to running to 10¾ inch casing, as per the well program. The well is to be drilled to a total depth of 2700 metres (2194 metres TVD) including a 400 metre horizontal section, and is targeting basal Westphalian Sandstones.

Dr John Doran
Chief Executive Officer
E-mail: jdoran@rocoil.com.au

Return to ASX Releases main page

BLANE FIELD BEING CONSIDERED FOR DEVELOPMENT

Petrobras UK Limited (Petrobras), as operator for and on behalf of the Blane Joint Venture, in which ROC has a 15.24% interest, has formally advised industry contractors that it is currently evaluating and wishes to progress, the development of the Blane Oil Field in the UK North Sea.

In a public notice to contractors, Petrobras has provided a number of comments with regard to the Blane Field Development Project including the following.

· Petrobras recognises that there are a number of ways by which the field could be developed and it has advised contractors that it intends to select the optimum concept through a tendering process.

· The field lies in 74 metres of water and contains reserves of 15 - 40 MMBO of 42° API oil which will be developed with 2 - 5 wells. A 1 - 3 year oil production rate of 15,000 - 25,000 BOPD is forecast together with 6 - 10 MMSCFD of associated gas. The field will require water injection and artificial lift. First oil is planned for early 2002 and a field life of 3 - 8 years is expected.

· Petrobras and its co-venturers intend to enter into a risk-sharing and/or performance-incentivised contract with one or more contractors and/or consortia, which are able to demonstrate significant relevant experience, technical and innovative expertise, appropriate resources and the financial capability to develop the field.

Commenting on the public notice from Petrobras ROC's CEO Dr John Doran stated that:

"It is encouraging that this necessary first step towards the potential development of the Blane Field is running well ahead of ROC's Prospectus forecast which suggested that the field would probably not be subject to any development activity before 2005."

Dr John Doran
Chief Executive Officer
E-mail: jdoran@rocoil.com.au

Return to ASX Releases main page

ANNOUNCEMENT (14-04-00)

ROC SIGNIFICANTLY INCREASES ITS PRESENCE IN DEEP WATER AREAS OFFSHORE WEST AFRICA

ROC is pleased to advise that it recently executed two separate and unrelated transactions which have significantly increased its presence in the deep water areas offshore West Africa, specifically offshore Equatorial Guinea and offshore Mauritania.

These transactions represent the latest expression of a strategy which ROC implemented in early 1998, designed to give shareholders an optimum exposure to the enormous petroleum potential which lies along Africa's Atlantic margin. Much of this potential relates to deep water areas where, during the last five years, billions of barrels of oil have been discovered in geological settings which are believed to be comparable to those found elsewhere offshore West Africa. Consequently, these areas are now recognised by the international oil industry as one of the world's exploration hot spots with an undeveloped reserve potential which is only now beginning to be realised thanks to recent technological advances which have placed deeper water areas well within the industry's drilling and development capabilities. Advances in 3D seismic technology have also greatly enhanced the industry's ability to pin-point oil fields in deep water as evidenced by exploration successes offshore Brazil, in the Gulf of Mexico and offshore West Africa. The significant improvement in deep water discovery rates has made the full cycle economics of deep water exploration very attractive

As a result of its latest acquisitions, ROC now has interests in four countries along Africa's Atlantic margin: Equatorial Guinea (60%), Senegal (92.5%), Morocco (100%) and Mauritania (2.0% - 2.7%), representing a collective gross acreage spread of 100,000 sq km/25 million acres (Attachment 1).

Details of ROC's two most recent transactions are provided below.

1. FARMIN TO OFFSHORE EQUATORIAL GUINEA

Roc Oil Company Limited (ROC) has executed a Farmin Agreement with Atlas Petroleum International Limited and Osborne Resources Limited (collectively "the Atlas Group") with regard to Blocks H15 and H16 ("the Blocks") in the Rio Muni Basin, offshore Equatorial Guinea (Attachment 2).

The essential elements of the Farmin Agreement include:

· The Atlas Group, which owns 100% of the Blocks, will assign to ROC a 60% interest in consideration for which ROC will reimburse the Atlas Group's past costs to a total cash amount of US$4 million.

· ROC will also provide the Atlas Group with a work-programme carry through 100% of the cost of the pre-drill seismic and 70% of the cost of the first exploration well together with 100% of the cost of other, relatively minor, statutory fees that will fall due during the carry period. In the event that commercial production is established in the Blocks these carries will be repaid to ROC out of 50% of the Atlas Group's share of production revenue.

· In certain beneficial circumstances, it is anticipated that ROC will reduce its equity to a level between 60% and 35% with the exact magnitude of the reduction being related to details which are yet to be finalised.

·The Atlas Group will continue to be the designated Operator of the Blocks and ROC will act as the Technical Partner.

· Exploration activities are expected to commence shortly but the Atlas Group - ROC Joint Venture will continue to be receptive to farmin interests expressed by third parties with relevant deep water oil field development expertise.

By way of further background the following points should be noted:

· The Atlas Group applied for the Blocks in July 1999, prior to the Ceiba discovery (see below). The Blocks, which cover 1,652 sq km/0.4 million acres, were awarded to the Atlas Group in December 1999 and the contract received Presidential ratification in February 2000.

· Water depth within the Blocks ranges from approximately 400 metres to more than 2000 metres.

· Of particular interest to ROC and The Atlas Group is the Ceiba oil discovery made by Triton Energy Limited (Triton) in October 1999, approximately 90 km along regional geological trend to the south of the Blocks (Attachment 2). The discovery well for the Ceiba Field was reported by Triton to have flowed 12,400 BOPD, constrained by surface equipment. The field has been successfully delineated by an appraisal well and it has been reported in the industry media that commercial production is expected to commence prior to end 2000. Industry media reports also suggest that reserves estimates for the Ceiba Field are in the range of 100 to 500 MMBO. Since mid-1999 Triton's market capitalisation has increased by more than A$1 billion and industry analysts have suggested that this increase is not entirely unrelated to the discovery of the Ceiba Field.

· Prior to the Ceiba discovery only 6 wells - all exploration wells and all dry - had been drilled in the Rio Muni Basin. All of the previous wells were located along the eastern, shallow water/onshore, margin of the basin. The discovery of the Ceiba Field, in the deep water part of the basin, confirmed a new play concept in the area and directed the attention of a number of international oil companies to the petroleum potential of the deep water parts of the Rio Muni Basin.

· According to industry media reports, the oil in the Ceiba Field is reservoired in Cretaceous sands, which are also reported to have excellent reservoir properties and productive capacity; two essential elements for the successful commercial development of deep water oil fields.

· At the moment the Blocks are covered by a loose 2D seismic grid which indicates the presence of gravity slides and other structural and stratigraphic features often associated with deep water oil fields in other parts of West Africa. However, 3D seismic survey needs to be acquired, processed and interpreted in order to identify specific drill targets.

Commenting on the Equatorial Guinea farmin ROC's CEO Dr John Doran stated that:

"All of us at ROC are looking forward to working with the Atlas Group and the Government of Equatorial Guinea in the belief that the petroleum potential of an area can only be fully realised when all relevant parties work together in harmony and with mutual respect, ROC is very pleased that this basis for an excellent working relationship has already been established."

2. OPTION REGARDING OFFSHORE MAURITANIA

ROC and all of the shareholders of the privately-owned Elixir Corporation Pty Ltd (Elixir) have executed an Option Agreement ("the Option") with regard to Elixir's exploration acreage offshore Mauritania, West Africa ("Elixir's acreage") (Attachment 3).

The essence of the Option is:

· All of Elixir's shareholders have provided ROC with an option to acquire all of their shares in Elixir, representing 100% of Elixir's issued capital.

· Elixir's sole asset is its interest in petroleum exploration permits offshore Mauritania, which collectively cover approximately 80,000 sq km/20 million acres; virtually all of the country's offshore area (Attachment 3).

· In consideration for the Option, ROC has agreed to pay Elixir shareholders an initial option fee of US$200,000 cash.

· The initial option period ends on 1 March 2001 or when the first well starts drilling in Elixir's acreage, whichever is the earlier.

· Elixir's shareholders have provided ROC with two opportunities to extend the option beyond the end of the initial option period: specifically, at the end of the initial option period and twelve months after that date. On each occasion that the Option period is extended for a further twelve month period ROC will provide to Elixir's shareholders US$100,000 cash and US$100,000 worth of ROC shares based on the ROC share price at the time the Option is extended. If ROC chose to fully extend the Option, the option arrangement would expire in early 2002.

· As long as ROC has neither exercised its option nor allowed it to lapse, it will ensure that Elixir has access to sufficient funds to enable it to maintain the good standing of its interests offshore Mauritania. This will be achieved by the provision of interest free loans from ROC to Elixir which will be repayable to ROC only if ROC does not exercise its option. Because Elixir's interests are subject to a number of free carries it is anticipated that the loans which Elixir may require will not be significant in the foreseeable future.

· Upon the first flow of oil at a rate in excess of 2,000 barrels of oil per day (BOPD) from Elixir's acreage ROC will be required to either exercise its option or allow the option to lapse.

· In the event that ROC chooses to exercise its option, ROC will pay a cash consideration to Elixir shareholders in the range of US$1.0 million to US$2.9 million and also provide Elixir shareholders with ROC shares to an equivalent value based on the ROC share price at the time the Option is exercised. The exact magnitude of the consideration for exercising the Option will be determined according to when the option is exercised so that the later the option is exercised the higher the option exercise price.

· Upon the first flow of oil at a rate in excess of 2,000 BOPD, or the declaration of a commercial gas discovery, within Elixir's acreage, ROC will, if it has exercised its option, provide to Elixir shareholders a "discovery bonus" equivalent to approximately half of the consideration provided to Elixir's shareholders when ROC exercised the option. The discovery bonus will be paid 50% in cash and 50% in ROC shares based upon the value of ROC shares at the time the bonus is paid.

· As an integral part of the option arrangement Elixir has appointed ROC as its technical advisor with regard to the company's acreage offshore Mauritania.

For further background please note the following points:

· As a result of separate agreements with a number of companies including Woodside Mauritania Pty Ltd, British Borneo International Limited (collectively the Woodside - British Borneo Farmin Group), Hardman Petroleum (Mauritania) Ltd, Dana Petroleum Limited and Fusion Investments Limited, Elixir's interests are subject to a number of free carries through a variety of current and potential work program expenditures, including the anticipated drilling of at least one - and possibly as many as three - exploration well/s.

· During the late 90s Elixir et al. conducted geological and geophysical studies which included the acquisition, processing and interpretation of 2D and 3D seismic data. Results obtained to date are considered to be encouraging and, within the next 12 months, the Woodside-British Borneo Farmin Group will consider drilling the first farmin well in Elixir's acreage.

· The main play concept being pursued by Elixir is based upon geological analogies with giant oil fields which have been discovered in deep water areas elsewhere off the West African coastline during the last five years, as referred to earlier in this ASX release.

Commenting upon the Option, ROC's CEO Dr John Doran stated that:

"The structure of the option may seem to be a little complex but it simply reflects the size of Elixir's interests and the fact that much of the initial benefit which Elixir expects to receive relates to the receipt from third parties of free carries through work program expenditures. The bottom line is very straightforward: at a time of its own choosing during the next three years, ROC has the ability to gain a strategically significant entry into a very large area with an upside potential that could prove to be substantial despite the small equity position."

Dr John Doran
Chief Executive Officer
E-mail: jdoran@rocoil.com.au

Return to ASX Releases main page

ACTIVITIES UPDATE (14-04-00)

1. DRILLING OPERATIONS

1.1 Onshore UK (ROC 100%)

The Keddington-2 well started drilling at 9.00am on Wednesday 12 April 2000. The well, which is the first appraisal/development well in the Keddington Field, is scheduled to reach a total depth of 2700 m (2194 mTVD), including a 400 metre horizontal section, within 55 days.

2. PRODUCTION

2.1 Onshore UK (ROC 100%) The Saltfleetby Gas Field continues to produce at approximately 50 MMSCFD with an estimated condensate production in the order of 1000 barrels per day. So far the field has out-performed Prospectus forecast and its peak plateau production has continued longer than anticipated through the high gas price period represented by the British winter and an unseasonable cold snap in early April. The field is now expected to come off plateau production during April/May coincident with the onset of lower UK gas prices during the spring-summer period.

As of last week, ROC's UK oil production approximated 2470 BOPD. The company's onshore production, representing approximately 94% of ROC's total UK production, benefited from a successful fracture stimulation of the Brindsley Abdy in the A29 well in the Welton Oil Field which caused oil production from that well to increase from 13 BOPD to 147 BOPD. In the context of the Welton Field this type of reservoir management is particularly profitable because of the low capital expenditure required, the still strong oil prices and the excellent fiscal regime onshore UK.

2.2 Mongolia (ROC 100%)

ROC's production from its three wells in the East Gobi Basin continues to range between 130 and 150 BOPD. There are now about 28,000 barrels of oil in storage at ROC's field facility in the Gobi Desert awaiting export sale to China during mid-2000.

3. SIGNIFICANT EXPANSION TO ROC'S WEST AFRICAN EXPLORATION PORTFOLIO

In a separate notice released to ASX earlier today, ROC detailed two transactions which it completed earlier this week which have greatly expanded the company's presence in the deep water areas offshore West Africa; specifically, offshore Equatorial Guinea and offshore Mauritania. Shareholders are referred to the earlier release for further details.

Dr John Doran
Chief Executive Officer
E-mail: jdoran@rocoil.com.au

Return to ASX Releases main page

ACTIVITIES UPDATE (06-04-00)

PROPOSED TWO PHASE DEVELOPMENT OF THE CHESTNUT OIL FIELD, UK NORTH SEA

Brovig Production Services Ltd (Brovig) has issued the following announcement regarding the proposed development of the Chestnut Oil Field.

QUOTE

Chestnut Field Development Contract

Today Brovig Production Services Ltd, a wholly owned subsidiary of Brovig Offshore ASA, and Premier Oil Exploration Ltd, on behalf of the partners in Block 22/2a UKCS, signed a Letter of Intent (LoI) for the provision of services for the development and production of the Chestnut Field. The parties are proceeding with the negotiation of a full agreement.

It is anticipated that the field will be developed in two phases, with the first phase comprising a production test of a newly drilled horizontal producer with subsea completion. The second phase will involve the drilling of a water injection well to further enhance production subject to the results of the first phase.

Subject to regulatory consents and approvals, first oil is expected during the fourth quarter of this year.

Background

The Chestnut field was discovered in 1986 by the Premier operated 22/2-5 well.

Partners in Block 22/2a are:

Premier Oil Exploration Ltd 30.00%

Bow Valley 17.75%

Roc Oil (UK) Ltd 17.75%

British Borneo 12.50%

Saga Petroleum 12.00%

TotalFina 10.00%

This project is in line with Brovig's new strategy to offer a wider spectrum of services and to respond to the challenge of providing commercially attractive means for developing marginal fields. Brovig believes that the pioneering field development services package it has developed could represent a much needed breakthrough in the approach to marginal field developments in the North Sea.

Further information will be released upon signing of the full agreement

UNQUOTE

Commenting upon the potential Chestnut development ROC's CEO Dr John Doran stated that:

"ROC is encouraged by the latest developments with regard to the Chestnut Field, particularly since according to ROC's prospectus the field was not expected to be subject to development until 2001 at the earliest."

Dr John Doran
Chief Executive Officer
E-mail: jdoran@rocoil.com.au

Return to ASX Releases main page