| JANUARY 2001- RELEASES |
| UPDATE (24-01-01) |
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BOARD CHANGE Mr Bun Hung, Executive Director, has given notice of his intention to resign from all positions held in the Company effective 16 February 2000. Mr Hung has advised that he intends to look for appropriate consultancy roles in the international oil and gas industry with a view to identifying potential "start up" opportunities. Mr Hung leaves the Company on the very best of terms and carries with him the genuine good wishes of all of ROC's staff and particularly all his fellow directors who greatly appreciate his contributions to the Company's development. Dr
John Doran |
| INDEPENDENT EXPERTS' RESERVE REPORT FOR END-2000 - RELEASED (24-01-01) |
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Independent Experts' Reserve Report for End-2000 SUMMARY · ORIGINAL IN-PLACE SALTFLEETBY GAS ESTIMATE UP 38.7 BCF (60%) TO 103.6 BILLION CUBIC FEET (BCF) · PROVED PLUS PROBABLE (2P) INITIAL SALTFLEETBY GAS RESERVES UP 22.2 BCF (43%) TO 73.5 BCF. · REMAINING (AS OPPOSED TO INITIAL) 2P RECOVERABLE GAS RESERVES AT SALTFLEETBY ARE 56.8 BCF, UP 6.2 BCF (12%) ON THE CORRESPONDING FIGURE AT END-1999; DESPITE OVER 16 BCF OF GAS BEING PRODUCED DURING 2000. · REMAINING PROVED NORTH SEA OIL RESERVES UP 2.6 MILLION BARRELS OF OIL (MMBO) (84%) TO 5.7 MMBO. · REMAINING 2P NORTH SEA RESERVES UP 6.6 MMBOE (39%) TO 23.5 MMBO. ·
COMPANY-WIDE REMAINING 2P OIL, GAS AND CONDENSATE RESERVES FOR END-2000
ARE UNCHANGED AT 33.6 MMBOE DESPITE PROLIFIC PRODUCTION FROM SALTFLEETBY
AND SALE OF ONSHORE UK OIL RESERVES.
1. END-2000 RESERVE ESTIMATES · ROC's remaining recoverable proven reserves are 14.0 million barrels of oil equivalent (MMBOE), unchanged from the corresponding figure at end-1999. The oil:gas split for ROC's proven reserves is 39:61. · ROC's remaining recoverable proved and probable (2P) reserves are 33.6 MMBOE, also unchanged from the corresponding figure at end-1999. The oil:gas split for ROC's 2P reserves is 60:40. · The above figures take into account ROC's net 3.4 MMBOE production during 2000, mainly from the Saltfleetby Gas Field, and the sale during the year of 5.3 MMBOE of 2P reserves from Welton and associated oil fields. This total reserve reduction of 8.7 MMBO was offset by an upward reserve revision spread across a number of the Company's UK fields, particularly the onshore Saltfleetby Gas Field and three North Sea oil fields: Kyle, Chestnut and Blane.
· Assessment of original in-place gas at ROC's 100%-owned Saltfleetby Gas Field in Lincolnshire, increased by 38.7 BCF (60%) to 103.6 BCF. This increase is based upon analysis of pre-2000 data together with the field's production history to end-2000, the results of the Saltfleetby-5 well drilled in third quarter 2000 and a recent detailed review of the geology of the field and relevant 3-D seismic data. · Initial proven and 2P recoverable gas reserves at Saltfleetby are 63.1 BCF and 73.5 BCF respectively. The latter number represents a 22.2 BCF (43%) increase over the 51.3 BCF initial 2P estimate at end-1999. · Remaining (as opposed to initial) recoverable proven and 2P gas reserves at Saltfleetby at end-2000 are 46.4 BCF and 56.8 BCF respectively, after allowance for production to date.
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ROC's remaining recoverable proven North Sea reserves are at 5.7 MMBOE,
up 2.6 MMBOE (84%) from the corresponding figure at · Almost all of the proven recoverable reserve increase is the result of an upgrade at two fields both of which are the subject to continuing appraisal and/or development activity: Kyle and Chestnut. The Kyle upgrade is based on the results of the EWT in the southwestern quadrant of the field and the new well drilled in the northeastern quadrant during mid-late 2000. The Chestnut upgrade is largely due to ROC increasing its equity from 17.75% to 29.75% in September 2000. · ROC's remaining recoverable 2P reserves in the North Sea are 23.5 MMBOE, up 6.6 MMBOE (39%) on the corresponding figure at end-1999. Almost all of this increase relates to reserve upgrades at the Kyle and Blane fields and to ROC's increased equity in the Chestnut Field. The oil:gas split for ROC's remaining recoverable 2P North Sea reserves is 83:17.
Commenting on the end-2000 Independent Experts' reserve reports ROC's Chief Executive Officer Dr John Doran stated that: - "The increase in ROC's 2P reserves at the Kyle, Chestnut and Blane Oil Fields in the North Sea is encouraging, but last year's stand-out performer was the Saltfleetby Gas Field where reserve depletion caused by prolific production during the last 12 months was more than offset by increased reserve estimates based on new data. In this sense, the Saltfleetby Gas Field has maintained its track record of delivering reserve growth as more and more information becomes available. When ROC published its Prospectus in June 1999 the field's initial 2P reserves were estimated to be 43 BCF. By end-1999, after two further wells had been completed in the field, this figure had been increased to 51 BCF. Twelve months later, with more data available, the initial 2P reserve estimate has again been revised upwards, this time to 73.5 BCF. The economic significance of this growth trend becomes all the more apparent when it is viewed in the context of the UK's attractive onshore petroleum legislation and the under-explored nature of the surrounding parts of the South Humber Basin. Another
source of encouragement is the increase in the amount of oil in ROC's
North Sea fields which has been moved from the "probable" into
the "proven" category. This trend augurs well for ROC's continuing
appraisal and development activity in the North Sea". Dr
John Doran Return to ASX Releases main page
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ACTIVITY UPDATE (19-01-01) |
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1. PRODUCTION 1.1. SALTFLEETBY
GAS FIELD Gas sales for December 2000 were slightly above nominated capacity, averaging 43.7 MMSCFD, essentially the same as November 2000. Approximately half this gas was sold under the long-term contract and half at prevailing spot gas prices, which averaged A$6.50/MCF for the month, significantly above historical precedent. Since the beginning of January 2001 the production rate has been increased slightly to around 45 MMSCFD to take advantage of the current high prices as illustrated by spot prices in recent days in the range of A$9/MCF to A$12/MCF.
Keddington-1 production continues at a steady 70 BOPD. As anticipated in ROC's ASX release dated 8th December 2000, the Keddington-2 well was suspended prior to Christmas, having tested oil and gas, but with a gas rate too high to be flared. Options to commercially utilise the gas are under review and the results of the imminent 3D seismic survey in the area will be incorporated into this review.
Production continues at about 160 BOPD.
2.1 CLAYMORE
OIL FIELD The Claymore well 14/19-C74 has been completed and perforated for production. Initial testing at rates of more than 5,000 BOPD confirms that during the coming months the well should add significantly to the field's production, which in December 2000 averaged 32,000 BOPD. 3. FIELD DEVELOPMENT/ APPRAISAL 3.1 KYLE
OIL FIELD DEVELOPMENT All plans and activities for the Kyle Field development via the Curlew FPSO are progressing satisfactorily and first oil is still scheduled by end March.
Start date for the Chestnut Oil Field appraisal well, which had been scheduled for early January 2001, has slipped to early February 2001 because the contracted rig has been retained on its current well to carry out further operations at total depth. Although some allowance for rig delay had been built into the EWT timetable, the magnitude of the expected delay now means that first EWT oil is expected to slip by a commensurate amount from March to April 2001.
Re-entry of this well, which was drilled to 120 metres in December 2000, is scheduled for late January. Planned total depth of the well is 2,000 metres.
4.1 Drilling Operator Woodside Mauritania Pty Ltd (Woodside) continues its preparation for the 2Q2001 two well drilling programme in the deep waters offshore Mauritania. ROC's interest in the area relates to an Option Agreement (the "Agreement") it executed in April 2000 with all of the shareholders of the privately-owned Elixir Corporation Pty Ltd. According to the Agreement, details of which were provided in ROC's ASX release dated 14 April 2000, ROC is entitled to acquire 100% of the shares of Elixir through an option arrangement, which can be extended at ROC's discretion to March 2003. Elixir's sole asset is its 2.4 to 2.7% interest in various exploration areas offshore Mauritania. Dr
John Doran Return to ASX Releases main page
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