| ACTIVITY UPDATE (21-12-00) |
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1.
ESKDALE-13 WELL SPUDDED The Eskdale-13 appraisal well in PEDL002 commenced drilling on 5 December 2000. The surface hole was drilled to a depth of 120 metres by 8 December 2000 by the Operator, Star Energy Limited, using a water well rig. 13 3/8" casing was set and cemented to surface. It is planned to re enter the hole and drill to a total depth of 2,000 metres using the Boldon 28 drill rig, commencing in January 2001.
Work is progressing on preparations for the drilling of the Chestnut appraisal well, which is scheduled to commence drilling in early January 2001. Following completion of the well, and subject to its success, an EWT will be undertaken commencing late in the first quarter 2001. Brovig Production Services will pay all costs associated with the well and the EWT.
The Claymore 14/19-C64 well has reached TD of 3,379 metres and at 0600 hrs local time 20 December 2000 was preparing to log. The Claymore Oil Field is operated by Talisman.
ROC, through wholly owned subsidiaries in the UK, has entered into oil price and gas price hedging contracts with Barclays Capital, covering a portion of the Company's 2001 oil and gas production. The oil price hedge, covering 383,000 barrels of oil over the period from 1 May to 31 December 2001, was implemented at an average Brent oil price of US$24.54, approximately 14% below the average price achieved during 2000. The gas price hedge, covering 1.7 bcf of sales gas over the whole of 2001, was implemented at an average price of 23.3 pence per therm (US$3.75/mcf), more than 25% above the average price achieved for spot gas sales during 2000. The volumes hedged represent relatively small proportions (in both cases less than one third) of ROC's 2001 uncontracted production and both hedges were made at prices above the Company's budget forecast to protect some of 2001's revenue potential at a time when the forward price curves are falling.
On 29 November 2000, Mr Robert Gerrard was appointed Company Secretary of ROC, replacing Mr Bruce Clement, Chief Financial Officer of ROC, in the role. Mr Clement maintains his connection with the Board as alternate Company Secretary. Dr
John Doran |
| ACTIVITY UPDATE (08-12-00) |
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1. SALTFLEETBY GAS FIELD PRODUCTION - Onshore U.K. (ROC 100%) Saltfleetby gas production for November 2000 averaged 44 MMSCF/day, up 22% from the October figure of 36 MMSCF/day, as a result of Saltfleetby-5 coming on stream on 1 November 2000. The November production rate is essentially the same as the average daily rate for the field's first full year of production (see below). Spot gas prices achieved during November were at record high levels going into the U.K. winter, leading to an average sales price for the month of more than 20 pence/therm (approximately $5/MCF). Gas prices for December are forecast to be higher again, while forward sales for the first quarter of 2001 are quoted at more than 28 pence/therm ($7/MCF). Saltfleetby-5 has provided ROC with an opportunity to consider forward selling gas, surplus to contractual commitments, over this 1Q01 period, at the elevated price. A Saltfleetby reserve report, for year end 2000, is currently being prepared by an independent engineering company, RDS Resource Limited. It is too early to be precise with regard to the likely outcome of the report but ROC's current expectation is that initial recoverable proved and probable reserves at Saltfleetby will increase by an amount that will go at least some way towards offsetting the 16 BCF (average 43.7 MMSCF/day) of gas which the field has produced since starting production on 14 December 1999.
Keddington-1 continues to produce at a stable rate of 70 BOPD. A three week test of the Keddington-2 well drilled earlier this year has been completed, confirming sustained gas flow at rates of more than 0.5 MMSCF/day, along with oil production of 25 BOPD. Production from the well is to be suspended while options to utilise the produced gas are evaluated. Both on-site power generation and the transport of the gas to Saltfleetby, 6 km to the east, will be among the development options considered. In
early 2001, 3D seismic will be acquired over the area in order to define
the full extent of the Keddington gas accumulation.
ROC has reached agreement, subject to contract, with IMC Geophysics Ltd for the acquisition of two 3D seismic surveys, totaling more than 400 sq km, in the South Humber Basin area. The surveys will commence in the first part of 2001 and will cover parts of three separate ROC licences and will, by a significant margin, be the largest 3D program ever undertaken onshore Britain. The surveys are expected to firm-up several leads for drilling by late 2001. The South Humber Basin contains the Saltfleetby and Keddington fields and is the core of ROC's onshore UK asset base (Attachment 1). ROC's contiguous licences in the South Humber Basin cover about 1,800 sq km/444,000 acres. Within this area, only five exploration wells (excluding a stratigraphic test) have been drilled during the last 27 years and only two of these were drilled during the last 10 years. Therefore, since 1972, only one exploration well has been drilled per 360 sq km/88,800 acres. Nevertheless, two significant discoveries have been made: Saltfleetby and Keddington. This combination of exploration success, prior to the application of 3D seismic, in a sparsely explored basin, which contains by far the biggest gas field onshore Britain, encourages ROC to regard the South Humber Basin as a potential key growth area - particularly when the results of horizontal drilling at Saltfleetby during the last 18 months are taken into account.
Talisman Energy, Operator of the Claymore Field, is continuing drilling operations on the 14/19-C64 infill well. At 0600 hrs local time on 7 December, the operation was circulating prior to carrying out a Formation Intergity Test, having just drilled out the 9-5/8" casing shoe set at 2,995 metres. The forward plan is to drill ahead into the Lower Kimmeridge, set casing and then drill into the target reservoir. Claymore is currently producing about 170 BOPD net to ROC's interest.
Approval of the Kyle Field Development Plan has been received from the Department of Trade and Industry ("DTI") and preparations for first oil production by March 2001 are on schedule.
The DTI has also approved ROC's acquisition of Conoco (U.K.) Theta Limited's 12% interest in the Chestnut Field. Preparations for drilling the 22/2a-P appraisal well, to be used for the Brovig-funded Extended Well Test ("EWT"), are on schedule. The well is due to spud early January and, if it is successful, the first oil is anticipated to flow via the EWT by late March 2001. 7. EAST GOBI BASIN PRODUCTION CONTINUES - Mongolia (ROC 100%) As the Mongolian winter sets in, ROC continues to produce approximately 150 BOPD from its acreage in the Gobi Desert. In accordance with the practice established last winter, the oil produced will be stored at ROC's tank farm at Zuunbayan for export sale into China during 2Q01.
A 1,400 sq km 3D seismic survey, 100% funded by ROC, is scheduled to commence in early January, immediately after a major oil company has completed its 3D survey in adjacent acreage. Blocks H15 and H16 are approximately 90 km north of, and on broad geological trend from, Triton Energy's Ceiba Field. This field was discovered in late 1999 but has already come on to production at an initial rate in the order of 38,000 BOPD with the expectation that the rate will quickly increase to 50,000 BOPD or more.
Because of ROC's high level of activity and its track record of trying to keep the market fully informed, some shareholders may have gained the impression that ROC routinely issues releases to ASX on a weekly basis. The reality is that ROC only distribute ASX releases when significant activity is being conducted. Sometimes the frequency of such activity has caused ROC to put out Activity Reports on a weekly basis, but the timing of the release of these reports is always driven by specific events rather than a regular weekly reporting procedure.
Dr
John Doran Return to ASX Releases main page
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