| JANUARY 2000- RELEASES |
WEEKLY ACTIVITIES UPDATE (11/01/00) |
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1. SALTFLEETBY GAS PRODUCTION PASSES 1 BILLION CUBIC FEET MARK Saltfleetby Gas Field in Lincolnshire, UK, 100% - owned and operated by Roc Oil (UK) Limited, a wholly owned subsidiary of Roc Oil Company Limited (ROC), continues to produce in line with the companyıs expectation and hopes. On 7 January 2000 the field sold its billionth cubic foot of gas, 24 days after first starting production. The field is continuing to produce gas at a steady rate of 50 million cubic feet per day with an estimated 1500-1700 barrels of condensate per day. Shareholders however should note that what Saltfleetby is experiencing at the moment is first flush gas production from a virgin field which, during the course of the next 12 months, is expected to decline essentially as forecast in ROCıs Prospectus dated 21 June 1999. 2. ROC HITS NEW REVENUE HIGH AS OF 1 JANUARY 2000 As a result of a combination of the Saltfleetby Gas Field coming onto production; the expiration of certain oil hedging programs, put into place by the previous owner of Rocıs onshore UK oil producing assets, and continuing high oil prices, the companyıs gross sales revenue is currently almost A$300,000 per day. Naturally, this revenue stream is expected to decline through calendar 2000, in line with natural decline in ROCıs producing properties as forecast in the Prospectus. 3. KYLE JOINT VENTURE SIGNS CONTRACT FOR MAY 2000 EXTENDED WELL TEST On 6 January 2000 Ranger Oil UK Limited (Ranger) on behalf of the Kyle Joint Venture, signed a contract with Petroleum Geo Services (PGS) to use the "Petrojarl-1" Floating Production Storage and Offloading facility (FPSO) in order to conduct a 130 day Extended Well Test (EWT) at the Kyle Field in the UK North Sea. The EWT, which is planned to commence in late May, subject to final DTI approval and consideration of the environmental statement, will test production from the 29/2c-12z well on the southwestern side of the Kyle structure. This well was previously scheduled to come on to initial production last month through the Banff Ramform FPSO located at the nearby, Conoco-operated Banff oilfield. The Petrojarl-1 has an established North Sea production and operational track record, being currently deployed at the Blenheim Field in which ROC holds a 0.34% working interest. Roc Oil (UK) Limited, a wholly owned subsidiary of Roc Oil Company Limited (ROC) has a 12.5% interest in the Kyle Oil Field where, in addition to Ranger (40%), the other co-venturers are Premier Oil PLC (35%) and Bow Valley (12.5%). The day after signing the "Petrojarl" contract, Ranger, on behalf of the Kyle Joint Venture, terminated the earlier agreement with PGS for the use of the Banff Ramform FPSO. 4. ROC ESTABLISHES NEW MONGOLIAN PRODUCTION BENCHMARK ROC has set a new benchmark for its Mongolian oil production as a result of continuing production operations through the Mongolian winter when temperatures range down to 40° Fahrenheit. Production, which is running at about 135 barrels of oil per day, has been made possible by the implementation of innovative operational procedures which are low cost and minimalist. This is the first time in the history of modern Mongolia that oil production has continued in the East Gobi basin through the winter months. 5. SENEGAL PRODUCTION SHARING CONTRACTS (PSC) RATIFIED ROC has been advised that on 31 December 1999, the President of Senegal ratified the companyıs recently awarded PSCs, offshore Casamance, Senegal, details of which were announced in ROCıs ASX release dated 27 October 1999. 6. OFFSHORE PERTH BASIN SEMSMIC PROCESSING COMPLETED ROC has been advised that seismic the processing of seismic data acquired during the Michelle Seismic Survey has been completed. This survey was conducted late last year, in offshore Perth Basin blocks WA-286-P and TP/15. On this basis ROC expects to enter into the 50 day assessment and interpretation period during which it has to decide whether or not it wishes to exercise its farmin option, which would lead to the drilling of an exploration well in the area in late 2000. Subject to the seismic interpretation, ROC believes that it is more likely than not that it will exercise its farmin option in relation to these areas. 7. PATRIA LITIGATION FOUND IN ROC'S FAVOUR In its Quarterly Report for the quarter ended 30 September 1999, ROC reported that one of its UK subsidiary companies had issued a writ against Patria Resources Limited ("Patria"), a Canadian based company, in respect of unpaid invoices totaling £73,312.56 arising under a contract pursuant to which the UK subsidiary company provided certain drilling services to Patria. In response to an application that Patria's defence be struck out, Patria gave notice of its intention to file an amended defence and a counterclaim in the sum of £581,062.25 for alleged misrepresentation and breach of contract and/or negligence. However, the court ordered that prior to being permitted to file its proposed amended defence, Patria pay the amount of the unpaid invoices (£73,312.56) into court. Patria failed to pay such sum and a judgement has been obtained against Patria for the amount of the unpaid invoices. In addition, ROC's UK subsidiary has been successful in having Patria's counterclaim struck out. Proceedings will be instituted to enforce the payment by Patria of the amount outstanding together with legal costs. Commenting on the developments referred to above, ROCıs Chief Executive Officer (CEO), Dr John Doran stated that: "All in all it hasnıt been a bad start to the new Millennium for ROC." Dr John Doran |