JULY 2000- RELEASES

1. DRILLING OPERATIONS

1.1 Saltfleeby-5 (ROC: 100%)

As of 6 pm on 27 July (UK time) the Saltfleetby-5 well had reached a depth of 1,538 metres (1,520 metres TVD) in the Roxby Formation and a wiper trip was underway in preparation for running 9 5/8" casing. The 3,200 metre well, including, if warranted, a 300 metre horizontal section, is designed to test the gas potential of the Namurian which underlies the field's main Westphalian reservoir and which has not been tested to date.

1.2 The Kyle Northeast Appraisal Well (ROC: 12.5%)

As of 6 pm on 27 July (UK time) the Kyle 29/2C-13 appraisal well (otherwise known as the Kyle Northeast well) had reached a depth of 1,219 metres (1,142 metres TVD) and was drilling ahead in 17 1/2" hole through claystone. The immediate forward plan for the well is to drill to 13 3/8" casing point at 1,387 metres while building hole angle to 50º.

2. PRODUCTION TESTING

2.1 Keddington-2 (ROC 100%)

During the week preparations continued for the installation of a pump at Keddington-2 with the expectation that the pump would be in place by next week.

2.2 Kyle Extended Well Test (EWT) (ROC: 12.5%)

This EWT continues to perform very satisfactorily with the operator varying production rates in order to gain a better understanding of the nature of the reservoir and to ensure that gas and oil production from the EWT remains within the guidelines defined by the UK Department of Trade and Industry (DTI).

3. AWARD OF NEW EXPLORATION LICENSES, ONSHORE UK (ROC: 100%)

ROC's wholly owned subsidiary, Roc Oil (UK) Limited, has been advised by the DTI that its applications for PEDL 075 and PEDL 076, offered as part of the Ninth Round of Landward Petroleum Licensing in the UK, have been successful. The initial term of both areas will be six years with a collective mandatory work program which requires the Company to purchase 56 km of existing 2D seismic data and acquire 50 km of new 2D seismic within the first two or three years. Both areas are close to PEDL 005 which contains the Saltfleetby and Keddington fields.

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

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1. DRILLING OPERATIONS

1.1 Saltfleeby-5 (ROC: 100%)

As of 6 pm on 18 July (UK time) the operation at Saltfleetby-5 was cementing 13-3/8" casing at 635 metres. The 3,200 metre well, including, if warranted, a planned 300 metre horizontal section, is designed to test the gas potential of the Namurian which underlies the field's main Westphalian reservoir.

1.2 The Kyle Oil Field (ROC: 12.5%)

As ROC advised ASX yesterday, operations have commenced at the Kyle Northeastern appraisal well location, where a well is being drilled to evaluate the reserve potential in this part of the Kyle structure. A shallow pilot hole spudded on 16 July and was drilled to 594 metres, confirming the absence of gas pockets in the sediments immediately below the sea bed. As of noon on 18 July (UK time) the operation was drilling 36" surface hole.

2. PRODUCTION TESTING

2.1 Keddington-2

During the week Keddington-2 was brought onto free-flow production at an initial rate of 274 BOPD without any water production. This compares to an initial first flush production flow from Keddington-1 in the order of 50 to 60 BOPD. During the first week of free-flowing production Keddington-2 production rates declined, in line with expectation, to just over 100 BOPD with an average for the period of approximately 170 BOPD. Keddington-2, which is approximately 5 metres high to Keddington-1, will be placed on pump prior to the end of the month in accordance with the pre-drill schedule.

2.2 Kyle Extended Well Test (EWT)

This EWT continues to produce at a rate of 13,000 BOPD with no water. As the pressure near the well drops below bubble point pressure as predicted, the gas-oil ratio has started to increase slowly and this trend will be controlled to maintain it within the guidelines for the conduct of the EWT.

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

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HEADS OF AGREEMENT SIGNED FOR FULL, LIFE-OF-FIELD, DEVELOPMENT OF THE KYLE OIL FIELD, UK NORTH SEA

A Heads of Agreement (the "Agreement") has been signed for the full, life-of-field, development of the Kyle Oil Field in the UK North Sea via existing infrastructure associated with the nearby Curlew Field, which is owned by Shell UK Limited (Shell) and Esso Exploration and Production Limited UK Limited.

Acting as Operator, for and on behalf of the Kyle Field owners, Ranger Oil (U.K.) Limited (Ranger) has signed the Agreement with two parties: Shell UK Limited (Shell) and Maersk Contractors (Maersk). Shell was acting on behalf of the owners of the Curlew Field and the Shell Esso Gas and Liquids Processing (SEGAL) System. Maersk is the owner and operator of the Maersk Curlew Floating, Production, Storage and Offloading (FPSO) facility.

The Agreement is subject to normal industry terms and conditions including continuing satisfactory results from the current field appraisal program and the receipt of regulatory approval from the relevant Government authorities in the UK.

First oil from the full field development of the Kyle Field is expected to go through the Curlew Facility in March 2001. During the early years of Kyle production the Maersk Curlew FPSO will continue to receive contemporaneous production from the Shell-operated Curlew Field, some 19 km south of the Kyle Field (Attachment 1).

The beneficial owners of the Kyle Field are Roc Oil (UK) Limited (12.5%) a wholly owned subsidiary of ROC, Ranger (20%) and related company, Ranger Oil (PC) Limited (20%), Premier Pict Petroleum Limited (35%), and Bow Valley Energy (12.5%). In separate, but related, news the latest Kyle drilling operations started on 16 July 2000 with the drilling of a shallow pilot hole on the northeastern flank of the Kyle structure. This will be followed immediately by the 29/2C2 appraisal well which will evaluate the reserve potential of this part of the Kyle structure.

Commenting on the proposed Kyle development, ROC's Chief Executive, Dr John Doran stated that:

"ROC has only been directly involved with Kyle for less than a year, but we were tending to develop a love-hate perception of the field: we loved its productivity and potential, but hated the delay in development - incurred when the Kyle Joint Venture was focussed on bringing the field onto production via the Banff Ramform FPSO - which coincided with ROC's first few months as a publicly listed company. Now it looks as if Kyle will finally get the chance to demonstrate its true potential with a very satisfactory Extended Well Test underway, a new appraisal well drilling on the northeastern flank of the structure and a very logical development plan being implemented based upon a well established production facility with a proven operating track record."

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

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1. NEAR TERM DRILLING PROGRAM

1.1 Onshore UK (ROC: 100%)

The Saltfleetby - 5 appraisal well started drilling on 8th July. At 0600 hrs on 10th July (UK time) the operation was cementing 18-5/8" casing. The well is designed to test the gas potential of the Namurian sequence which underlies the main Westphalian gas reservoir. Planned depth is 3200 metres including, if warranted, a 300 metre horizontal section in the Namurian.

1.2 The Kyle Oil Field (ROC: 12.5%)

Encouraged by the results of the Kyle Extended Well Test ("EWT") the Kyle Joint Venture has approved the drilling of an appraisal well on the northeast flank of the Kyle structure. This well is expected to start drilling within the week using the "Sovereign Explorer". If initial drilling results are encouraging, it is anticipated that the well will be drilled to a total depth of 3,800 metres, including a 750 metre horizontal section within the fractured chalk reservoir.

1.3 Mongolia (ROC: 100%)

At ROC's base camp in the Gobi Desert preparations continue for the drilling of two back-to-back wildcat exploration wells, the first of which is scheduled to start in mid-August.

2. SUMMARY OF PRODUCTION ACTIVITIES

2.1 Saltfleetby Gas Field (ROC: 100%)

During June 2000 the Saltfleetby Gas Field continued to produce at, or close to, plateau rates with an average gas production of 47.3 mmscf/d for the month. The field is now expected to come off plateau production during July 2000, significantly later than originally anticipated. Some ROC shareholders have enquired whether or not this better-than-expected production performance implies any change to the ultimate recoverable reserve potential of the Saltfleetby Field. ROC will not be able to provide a definitive response to this type of enquiry until later this year after it has completed further production testing, finalised the 3-D seismic interpretation and drilled Saltfleetby - 5.

2.2 Kyle Oil Field (ROC: 12.5%)

The Kyle EWT continues with the single well flowing steadily at 13,000 BOPD with a stable gas-oil ratio and zero water cut. The first cargo of Kyle EWT oil, approximately 254,400 barrels (net ROC 31,800 bbls), was sold during the third week of June 2000. Another, similar-sized, lifting occurred in early July 2000. Both liftings were sold at a small premium to Brent.

2.3 MMongolia (ROC: 100%)

During June 2000 ROC's three producing wells in the East Gobi Basin in southern Mongolia produced at a combined average of 119 BOPD. ROC continues to export to China Mongolian crude oil which it produced and stored through the winter. A second cargo of approximately 7,000 bbls was transshipped during the first week of July 2000. .A further, similar-sized shipment, is due to be exported within the next two weeks. The oil is sold at international prices, specifically at a modest discount to Minas

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

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