SEPTEMBER 2000- RELEASES

1. ONSHORE UK

SALTFLEETBY (ROC 100%)

Operating constraints at Conoco's Theddlethorpe Gas Terminal, which have caused rate reductions through September for all producers to the plant, have been largely resolved and Saltfleetby production has returned to around 38 mmscf/d. It is expected that all restrictions will be lifted during the coming week with Saltfleetby to produce at 40 mmscf/d.

The Roc Explorer rig is currently rigging down having run the completion equipment for the Saltfleetby 5 well and performed a short cleanup flow. The well is suspended ready to flow gas once the tie in to the facilities and export pipeline is complete. First commercial gas sale from the well is expected in early November.

2. UK NORTH SEA

KYLE NORTHEAST APPRAISAL WELL (ROC: 12.5%)

The 29/2c-13 well, also known as the North East Appraisal well, is continuing to run completion equipment, having experienced delays due to weather and some minor technical difficulties. Flow testing of the well is expected to occur in the next two weeks following perforation and acid stimulation.

KYLE 29/2C-12Z EXTENDED WELL TEST (ROC: 12.5%)

The DTI has indicated its willingness to consent to an extension of the time period for the 29/2c-12z extended well test ("EWT") with the initial consent volumes for oil and gas production, and gas flaring, remaining unchanged. The new test duration period is up to the 15th November 2000. At this time, it is forecast that a total of 1.5 million barrels of oil will have been produced from the well on EWT.

CHESTNUT (ROC 29.75%)

A letter of award has been issued and accepted for the Trans Ocean rig 'John Shaw' to drill the first Chestnut development well, contingent on signing the rig contract by the 12th October 2000. Brovig expects to sign this contract within the next week, after clarifying a number of insurance issues, and the well is expected to commence drilling during December. Given a successful completion of the planned horizontal well, an EWT will be conducted, with likely first oil production on test late in the first quarter 2001.

ROC's interest in the Chestnut Field has been increased to 29.75% following the acquisition of Conoco's 12% interest in the field (ASX Release 11 September 2000). ROC and the other joint venture partners will be free carried by Brovig through the drilling of the well and the EWT.

3. EAST GOBI BASIN, MONGOLIA

IRWES-1 (ROC: 100%)

The Irwes-1 well has been plugged and abandoned after drilling to a total depth of 1,300 metres. Minor gas shows were recorded in the well, but no oil shows were reported. The well intersected good reservoir sands in the primary objective above 710 metres. For all practical purposes the Irwes-1 well represents the first modern exploration well in Mongolia. The well results will be integrated into ROC's ongoing evaluation of the acreage and the costs of the well will be expensed in the company's third quarter results.

TEMEE-1 (ROC: 100%)

The surface conductor for the Temee-1 exploration well has been set and the well is due to spud by early next week. Drilling activity on the well is expected to be completed during October.

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

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1. ONSHORE UK:

1.1 Saltfleetby Gas Production (ROC: 100%)

Due to operational constraints at the Theddlethorpe Gas Terminal (TGT), the Saltfleetby Gas Field has been operating at reduced production rate during September 2000. Average production rate from Saltfleetby to 20 September was 34 mmscf/d, compared to a scheduled rate of 40 mmscf/day. TGT has been progressively increasing its intake of gas over the past few days and intake is expected to be back to scheduled levels by the weekend.

1.2 Saltfleetby-5 (ROC: 100%)

Following completion of Saltfleetby-5 as a Namurian gas producer, the well will be hooked up to ROC's gas production facility with production expected to commence by early November.

1.3 Keddington-2 (ROC: 100%)

Keddington-2, which had been shut in due to high producing gas-oil ratio, has been on test for the past week through temporary test facilities and has flowed at a stabilised rate of 75 bbl/day oil and 0.60 mmscf/day gas. The high gas rate had not been anticipated from the well prior to drilling and one interpretation of the results could indicate the presence of a gas cap of unknown size associated with the Keddington structure. The well, which is only 6 km from the Saltfleetby Gas Field, will now be shut in while long term production options are evaluated.

2. UK NORTH SEA: THE KYLE NORTHEAST APPRAISAL WELL (ROC: 12.5%)

Production testing of the Kyle 29/2c-13 appraisal well (also known as the Kyle Northeast well) is expected to occur during the course of the next two weeks subject to weather conditions.

3. EAST GOBI BASIN, MONGOLIA: IRWES-1

(ROC: 100%) Since the last Drilling Activity Update (15 September 2000), Irwes-1 has drilled to 1,154 metres in 8½ inch hole. Minor gas shows have been reported below 910 metres. Prognosed total depth is 1,300 metres.

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

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SHAREHOLDER'S UPDATE

Under separate cover ROC is sending out a Shareholders' Update to all of the Company's more than 6,000 shareholders in accordance with the Company's practice of maintaining a maximum level of direct communication with its shareholders. Most of the information contained in the Shareholders' Update has been released to the ASX in the Financial Report for the Half Year ended 30 June 2000 and Appendix 4B and in regular releases provided to ASX.

The Shareholders' Update provides a concise summary of the Company's achievements during the first half of 2000 together with summary financial statements for the period.

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

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- SALTFLEETBY-5 COMPLETES SUCCESSFUL PRODUCTION TEST AND COMMENCES COMPLETION AND TIE-IN PROCEDURES

- KYLE NORTHEAST WELL BEING COMPLETED FOR PRODUCTION TESTING

- IRWES-1 DRILLING AHEAD

1. ONSHORE UK: SALTFLEEBY-5 (ROC: 100%)

Since the last update on this well (11 September 2000) the production testing of the Namurian reservoir has been successfully completed with production rates of up to 20 million cubic feet per day (mmcfd). Valuable reservoir production and pressure information has been gathered. The well is now being prepared for completion as the first Saltfleetby production well in the Namurian reservoir formation. The permanent completion should be installed by the end of September. The Saltfleetby-5 well will be tied into the existing production facilities with production expected to commence by early November.

2. UK NORTH SEA: THE KYLE NORTHEAST APPRAISAL WELL (ROC: 12.5%)

Since the last Drilling Activity Update (8 September 2000), the Kyle 29/2c-13 appraisal well (also known as the Kyle Northeast well) has had the 7" production liner placed across the oil bearing formations. Operations are continuing in preparation for production testing and subsequent potential completion and suspension as a Kyle production well. Production testing is forecast to occur towards the end of September.

3. EAST GOBI BASIN, MONGOLIA: IRWES-1 (ROC: 100%)

Since the last drilling activity update, the well has been drilled to 743 metres in 12 ¼ inch hole, logged, and 9 5/8 inch casing has been run and cemented in place. The logging indicated very porous sands (with average porosity in excess of 20%) over a gross section of approximately 400 metres, but no oil bearing intervals. The well will now be drilled out of the 9 5/8 inch casing towards the total target depth of 1300 metres.

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

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- SALTFLEETBY-5 FLOWS UP TO 20 MMCFD FROM NEW DEEPER RESERVOIR SECTION

- CHESTNUT FIELD EQUITY INCREASED TO 29.75%

- CHESTNUT FIELD EXTENDED WELL TEST CONTRACT SIGNED AS PART OF POTENTIAL TWO PHASE, A$76 MILLION, DEVELOPMENT PROJECT TO BE FULLY FUNDED BY THIRD PARTY CONTRACTOR

1. SALTFLEETBY-5 NEW GAS RESERVOIR SECTION

The Namurian at Saltfleetby-5 has flowed gas at rates up to 20 million cubic feet per day (mmcfd) through a 52/64 inch choke with a flowing well head pressure of 1370 psig. The flow rate was somewhat constrained by surface facilities.

The Namurian section underlies, and is geologically separate from, the Westphalian sequence which is the established gas producing reservoir in the Saltfleetby Field.

The Namurian gas flow is very significant for a number of reasons including:

· The magnitude of the flow is well in excess of pre-drilled expectations.

· Any Namurian gas production at Saltfleetby is purely incremental which makes for extremely robust production economics.

· The flow is believed to be the first gas flow from the Namurian of the onshore South Humber Basin; as such it establishes a new reservoir target in an underexplored basin virtually all of which is held 100% by ROC.

· Although it is far too early to make any detailed comment about the impact which the Namurian gas flow will have on Saltfleetby's gas reserves the expectation is that it may be significant because ROC's end-1999 reserve estimate did not include any provision for gas in the Namurian. As a general order of magnitude, the Company's current expectation is that the Namurian gas flow may cause an upward revision to ROC's proven producing and probable gas reserves in the order of 5 to10 BCF, representing a 10 to 20% increase to end-1999 Saltfleetby Field recoverable reserves.

Preliminary pressure data from Saltfleetby-5 indicates that there may be some degree of pressure communication between the Namurian and the Westphalian reservoir sections although it is not known when this communication was established, nor its extent. The significance of this point is that if communication between the Namurian and Westphalian reservoir sections is a recent phenomenon, related to the field development which has already occurred at Saltfleetby, then the gas accumulation within the Namurian could be significantly larger than the Company's current assessment because the spill point for the structure at the Namurian level is significantly deeper than the spill point for the structure at the Westphalian level. However, considerably more technical information needs to be gathered and reviewed before a definitive comment can be made in this regard.

Commenting on the Namurian gas flow, ROC's Chief Executive Officer, Dr John Doran stated that:

"Whenever a company can flow 20 mmcfd of gas, from a new reservoir section, under a currently producing field, in the middle of a largely unexplored basin, almost all of which is 100% owned by that company, you tend to think that there is a reasonable chance that shareholder value can be increased substantially, both in the near and the longer term."

2. CHESTNUT FIELD: AGREEMENT TO INCREASE EQUITY

ROC's wholly owned subsidiary, Roc Oil (U.K.) Limited ("ROCUK") and Conoco (U.K.) Theta Limited ("Conoco"), a wholly owned subsidiary of Conoco Inc, have executed a Sale and Purchase Agreement ("the Agreement") with regard to the Chestnut Oil Field which lies within Block 22/2A in the UK North Sea (Attachment 1).

The essence of the Agreement is:

· In consideration for acquiring Conoco's 12% interest in the Chestnut Field, ROCUK will provide Conoco with an initial cash payment of US$500,000 which will be followed by two further cash payments if certain defined field performance criteria are satisfied. A successful Extended Well Test ("EWT"), planned for early 2001, will trigger a second payment of US$750,000. If/when the Chestnut Field has produced nine million barrels of oil, ROC will make a third and final cash payment of US$1.75 million.

· In addition to the cash considerations referred to above, ROCUK has also agreed to transfer to Conoco its 17.75% interest in the exploration rights in that part of Block 22/2A which lies outside the Chestnut Field area (Attachment 1).

· The Agreement is subject to normal industry terms and conditions, including receipt of appropriate Government approvals and any Chestnut Joint Venturer approvals that may be required.

· The effective date of the Agreement is 6 September 2000.

3. CHESTNUT FIELD: CONTRACT TO DRILL A NEW WELL AND CONDUCT AN EXTENDED WELL TEST WHICH, IF SUCCESSFUL, WILL LEAD TO A FULL FIELD DEVELOPMENT

On 6 September 2000 Premier Oil Exploration Ltd plc, acting as operator for and on behalf of the Chestnut Joint Venture, executed a contract ("the Contract") with Brovig Production Services Ltd ("Brovig"), a wholly owned subsidiary of Brovig Offshore ASA of Norway, relating to the appraisal and potential development of the Chestnut Field. The Contract has evolved from the Letter of Intent signed by the relevant parties in early April 2000 (see ROC's release to ASX dated 6 April 2000). The essence of the Contract is:

· It is anticipated that the Chestnut Field will be developed in two phases. The first phase, to be fully funded by Brovig, is budgeted to cost US$22.5 million/A$40 million and will comprise an Extended Well Test of a horizontal well scheduled to be drilled in early 2001.

· Subject to regulatory consents and approvals, first oil is expected to flow at initial rates in excess of 10,000 barrels of oil per day by end March 2001.

· If sufficient reserves are proved as a result of Phase One the development will proceed to Phase Two, which has a budgeted cost of US$20 million/A$36 million, which is also scheduled to be fully funded by Brovig. Phase Two will consist of the drilling of a water injection well in late 2001 and the installation of production facilities contracted for an estimated field life of approximately five years.

· Brovig will provide drilling and floating production services, as well as all necessary funding, in consideration for which it will receive a service fee paid out of oil production revenues.

Subsequent to the acquisition of the additional equity acquired from Conoco, ROCUK will hold a 29.75% interest in the Chestnut Field. ROCUK's net share of production will be 23.8% from Phase One after Brovig has recouped its Phase One costs; 9.6% from Phase Two while Brovig is recouping its Phase Two costs and 19.34% after Brovig has recouped its Phase Two costs. The development funding arrangements are such that at no stage will ROCUK be required to contribute funds to the development.

Commenting on the Chestnut transactions, ROC's Chief Executive Officer, Dr John Doran stated that:

"The arrangement with Conoco is a mutually beneficial piece of business. It is a good example of how large multi-nationals and small independents can co-operate to achieve their different respective goals. As far as the deal with Brovig is concerned ROC is pleased to have cost efficiently increased its interest in a possible field development, the more risky early stages of which will be fully funded by a third party."

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

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- SALTFLEETBY-5 PREPARES TO FLOW TEST NEW, DEEPER, GAS RESERVOIR

- KYLE NORTHEAST CONFIRMS OIL ACCUMULATION

- IRWES-1 DRILLS AHEAD TOWARDS TARGET

1. ONSHORE UK: SALTFLEEBY-5 (ROC: 100%)

Since ROC released its last Drilling Activity Update to ASX (31 August 2000) the Saltfleetby-5 well has drilled to a total depth of 3154 metres (2290 metres true vertical depth (TVD)) including a total of 398 metres of horizontal hole in the targeted Namurian section. Logs have been run which indicate that the Namurian is gas-bearing. This is consistent with the good to excellent gas shows that were reported while drilling. Preliminary log analysis indicates approximately 220 metres (55% of the 398 metres of the Namurian drilled by the well) represents potential net reservoir, of which 117 metres (53%) is regarded as exhibiting good reservoir quality. The top of the Namurian, at the furthest end of the horizontal well section, is 9 metres / 29 feet high to the top of the Namurian in Saltfleetby-3. A slotted liner has been run to Total Depth and preparations are currently underway to conduct a drill stem test (DST).

Subject to the test results the future program for Saltfleetby-5 is to complete it as a Namurian gas producer, tie it into the existing production facilities and bring it on stream during November 2000.

2. UK NORTH SEA: THE KYLE NORTHEAST APPRAISAL WELL (ROC: 12.5%)

Since the last Drilling Activity Update the Kyle 29/2c-13 appraisal well (also known as the Kyle Northeast well) was logged and 7 inch liner run as part of the preparation for testing and completing the well. Indications while drilling, together with core data and log interpretations confirm the presence of oil and open fractures. The forward programme is to complete and flow test the well.

3. EAST GOBI BASIN, MONGOLIA: IRWES-1 (ROC: 100%)

Since the last Drilling Activity Update, the well has drilled to 624 metres, towards the next casing point at about 800 metres. The sedimentary sequence penetrated by the well thus far is considered to be the shallow/uphole portion. During the week minor mechanical difficulties, related to equipment provided by third party suppliers, hindered drilling progress, but, through recourse to fabrication facilities at ROC's Zuunbayan Field Base, these difficulties were overcome.

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

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Below is a transcript of interview ROC's CEO had with corporate.com

OPEN BRIEFING - ROC CEO ON PROFIT & OUTLOOK

Record of interview:

corporatefile.com

ROC Oil Company Limited (ROC) recently released a $6.3 million after-tax profit before abnormal items for the half year to June 30, 2000. This is a $10.6 million turnaround from the $4.3 million loss reported in the previous year. What were the main reasons for the profit increase?

CEO John Doran

The gas prices we received in the U.K. were significantly better than prospectus forecast. Everybody is aware that the oil price has risen strongly but it is not as well known that in many parts of the world, including the U.K., gas prices have also risen substantially.

During 2000 the UK spot gas price has risen by more than 40 percent to $4.80/mcf. ROC's June 2000 gas price averaged $4.80/mcf, 60 percent higher than the equivalent price in June 1999.

The other key element was strong production from ROC's 100% owned and operated Saltfleetby Gas Field which was also well ahead of prospectus forecasts.

corporatefile.com

Are you essentially on track to achieve your prospectus profit forecast of $13.1 million after tax for the year ending December 2000?

CEO John Doran

Yes, as evidenced by the $6.3 million after-tax profit we reported for the first six months of 2000 - and that was without reference to the $18.1 million abnormal profit generated by the March 1 sale of our non-core onshore U.K. oil properties. When we take abnormals into account, we expect to nearly double the $13.1 million figure in the prospectus.

corporatefile.com

What impact did the $57 million sale of the Welton Oil Field on March 1, 2000 have on operating profit?

CEO John Doran

If we had kept those properties, our short-term revenue and operating profit would have been even stronger. Our actual half-year profit figure is all the more noteworthy because those properties were contributing about 19 percent of our company-wide production at the time of sale. But we wouldn't have $62 million in the bank ready for reinvestment in new assets and we would be carrying $49 million net debt as opposed to none.

The sale of the non-core assets in and around the Welton Oil Field generated an abnormal after-tax profit of $18 million on a sale price of $57 million. Importantly, we were able to structure the deal so that, over the next two years, we could receive as much as $13 million in additional cash bonuses if the Brent oil price remains strong and realistic production targets are met by the new owners of Welton.

corporatefile.com

Are gas prices directly linked to the oil price?

CEO John Doran

In the U.K. there is no formal linkage between gas and oil prices. However, there seems to be a coincidental 'link'. Some observers believe strong international oil prices have had a positive knock-on effect in the U.K. gas market because of the interconnector pipeline which links the U.K. to continental Europe.

corporatefile.com

What percentage of your gas is sold via contracts?

CEO John Doran

We sell about 40-50 percent of our production through a contract with Northern Electric. The balance is sold into the spot market in the UK.

corporatefile.com

What is ROC's earnings sensitivity to a change in the gas price?

CEO John Doran

At the moment it is quite pronounced. Fortunately, it is not only the spot U.K. gas price which has risen. The entire forward curve has moved upwards which suggests that the recent spot price strength is more than a transient move. Spot and forward gas prices are so strong, they would have to tumble a long way before they threatened the prospectus forecast.

A 5 percent move in the gas price translates to a $1.1 million move in ROC's pre-tax profit.

corporatefile.com

The earnings contribution from the Saltfleetby Gas Field was a key reason for the profit growth. ROC completed development of Saltfleetby in December 1999. At what stage of development did you buy into the project?

CEO John Doran

When the field was little more than an embryo. We agreed to buy the asset when there were only two wells in the field completed for potential production.

corporatefile.com

Was the initial production from Saltfleetby of around 50 mmcfd higher than you expected?

CEO John Doran

Yes. For the first 6 months of this year, production remained at a plateau of close to 50 mmcfd whereas we had expected natural field decline to set in around March. Over the next year, it is expected to produce at an average rate of 30-40 mmcfd. This is without any need for compression facilities which are something we had expected would have been required by October 2000.

corporatefile.com

Where might ROC source significant organic growth?

CEO John Doran

In the final analysis an upstream oil and gas company like ROC lives or dies according to its drilling results. ROC's future growth will come from the drill bit.

As we speak, ROC has three important wells going down in various parts of the world, two of which are operated by the company. In the North Sea, an appraisal well is testing the undrilled 'far side' of Kyle Oil Field which is currently subject to development planning. There is also a well drilling at Saltfleetby which will be the first to test whether or not a deeper reservoir exists in that field.

We are also drilling a frontier wildcat exploration well in the Gobi Desert in Mongolia. This is the first modern exploration well ever drilled in the southern part of that country where the risk of failure is high but where the rewards could be enormous.

We will have results from all three wells during the next three weeks and success at any one could have a very positive impact on the company.

We also believe that we will find growth amongst some of the company's North Sea fields which are presently undeveloped. Next year, the Kyle Field should be operating as a full field development and we hope to do some extended testing of the Chestnut Field. Development of either Kyle or Chestnut, or both, would bolster ROC's earning in 2001 and beyond.

The first half of next year should also see one or more deep water wells go down in offshore Mauritania in blocks in which ROC could acquire a small interest (2.0-2.7%) by exercising an option acquired for an initial payment of US$200,000. During the same time period, we plan to drill a well in the offshore Perth Basin if we can contract a suitable rig.

Further down the track, we have some extremely interesting acreage in the Rio Muni Basin in the deep (around 1,200 metres) waters offshore Equatorial Guinea. In late 1999, the Rio Muni yielded one of the world's more exciting recent wildcat discoveries when Triton Energy found the Ceiba Oil Field. This is about 90 km on geological trend to the south of the blocks in which ROC has agreed to acquire up to a 60 percent interest.

ROC is one of only six companies in the world with interests in this basin where all the available acreage is now effectively under lease. Subsequent to its discovery well, Triton has announced the results of another four Ceiba appraisal wells, all of which were very positive. This might explain why Triton's market capitalisation has increased by more than one billion Australian dollars since the middle of last year.

corporatefile.com

What is the likely timing of the wells in Mongolia?

CEO John Doran

We are drilling the first one, Irwes-1, as we speak and it will be followed immediately by Temee-1. The drilling should be completed by the end of October.

corporatefile.com

Are there areas ROC excludes when exploring?

CEO John Doran

Yes. We have no current intention of exploring in the Americas. For a variety of reasons we don't think ROC is the type of company that should be trying to create shareholder value in Canada, the US or South America. Neither do we expect to do business in Russia nor, except in exceptional circumstances, the former Soviet republics.

We don't define our focus in terms of geography because nowadays distance is dead and location is largely irrelevant. For those who need a geographic framework we say we are particularly receptive to business opportunities in West and North Africa and the Middle East as well as selected parts of Asia, Australasia and Europe, particularly the North Sea and the onshore Humber Basin in the U.K.

corporatefile.com

You have described your investment philosophy as "sensibly contrary". Can you expand on this?

CEO John Doran

In the oil business, if you walk with the herd, you need a big chequebook to be competitive. A company the size of ROC can't compete on that basis, so we have to be contrary. But an exploration and production company that is contrary without constraint can quickly destroy shareholders' funds.

You need to be "sensibly contrary" but this doesn't always mean having to go to exotic parts of the world. For example, when oil was around US$10/barrel in the first part of 1999 we agreed to buy a portfolio of oil and gas assets in the lead up to our Initial Public Offering in mid 1999 - that was sensibly contrary because the oil price has since increased threefold against all predictions.

corporatefile.com

What is your current cash balance and how much could you pay for an acquisition using cash and debt?

CEO John Doran

We had net cash at the end of July of $62 million. We could pay US$50-100m for an acquisition that could be debt funded. If we wanted to get into more complex financing structures, we could go above that range. However, at the current share price we do not have any need, nor any intention, of issuing equity to finance acquisitions.

Although size can be very important, it is not synonymous with quality and that is why some of our potentially better deals have quite small initial outlays.

corporatefile.com

What is your target return on shareholders' funds for new investments?

CEO John Doran

We judge our investments on several criteria, one of which is return on shareholders' funds. We don't nail ourselves down to one rigid hurdle criterion but rather look at each deal as potentially offering a matrix of tangible financial benefits. We find that this approach allows us to remain focused on our sole objective - making a lot of money for our shareholders.

corporatefile.com

Do you think the delay in oil production from Kyle has held back the share price?

CEO John Doran

First oil was produced from Kyle within six months of our prospectus forecast, albeit via an extended well test rather than a full field development. Full field development should occur next year. In the offshore oil industry, that type of delay is not a big deal particularly when it is for reasons outside of our control. But we acknowledge it was a bigger issue in the sharemarket because investors don't like delayed gratification.

corporatefile.com

The company looks to be in a good financial position with solid growth potential. Why do you think this hasn't been reflected in the share price?

CEO John Doran

It's hard for an oil company of ROC's size - with a market capitalisation less than US$100 million - to be on everybody's radar screen. It is even harder if you spend most of your corporate effort making sure the fundamental building blocks are in place instead of telling the market about who you are and what you plan to do.

Rightly or wrongly, we've always taken the view that if results are solid, market perception will eventually catch up with reality. With a 50 percent share price rise during the last four months, albeit from a low base, plus the strong half yearly results we've just announced, we would like to think that ROC is heading towards a re-rating.

corporatefile.com

There were rumours of directors selling stock. What is the situation?

CEO John Doran

When I first heard it I thought it was meant to be humour, rather than rumour, because anyone who knew the company could not take it seriously.

All of the directors have retained all of their holdings. Why wouldn't they at these prices? Some, including myself, have increased their shareholding on market as announced to the Australian Stock Exchange at the time.

corporatefile.com

What are ROC's biggest weaknesses?

CEO John Doran

Our first weakness is size. This is a common problem with all Australian oil and gas explorers and producers below a billion dollar capitalisation.

Also, at the moment we are too dependent on production from Saltfleetby. Currently the field is performing brilliantly but you need more than one leg if you're going to stand up in this industry. We need to add to our core asset base and a full-scale development of Kyle could go some way towards achieving this. A significant discovery in Mongolia would fix the issue in an instant.

We also need to move more of our probable reserves into the proven producing category. This might be achieved by successful drilling at Kyle or an Extended Well Test at Chestnut or a new deeper gas pool at Saltfleetby although we don't currently include any of Saltfleetby's deeper gas potential in our reserve base.

corporatefile.com

Brokers forecast ROC's earnings to peak around 2001. Is this a reasonable expectation?

CEO John Doran

Not if you believe that the Company has the ability to add to its core asset base in a cost efficient manner. I believe ROC's track record already demonstrates that we can do this.

However, based on our current producing assets, an earnings peak around 2001 is a logical assessment. But, fortunately, in today's international oil and gas industry everything is constantly changing. Most people in the industry agree that there have never been so many growth opportunities. This is why we've worked so hard to position ROC to make sure we can use our cash, production base and sensibly contrary strategy to take advantage of those opportunities.

corporatefile.com

Thank you John. We look forward to the next Open Briefing with ROC Oil.