SUMMARY

· North Sea development drilling and extended well testing ("EWT") operations continue

1. DEVELOPMENT DRILLING

1.1 Kyle Oil Field, UK North Sea (ROC: 12.5%)

At 0600 hrs on 19 September 2001 (UK time), the Kyle development well, 29/2c-14a was preparing to drill ahead to total depth in 6 ¾" hole from the current depth of 3,697 m after successfully setting and pressure testing 7 5/8" liner. Planned Total Depth is 4,175 m. The well, the third production well in the Kyle Field, is the first designed to produce from the Kyle Palaeocene sands.

2. DEVELOPMENT TESTING

2.1 Chestnut Oil Field EWT, UK North Sea (ROC: 14.875% carried)

The EWT has continued in line with expectations although testing has been intermittent with occasional down time due to inclement weather.

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

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SUMMARY

· North Sea development drilling and extended well testing ("EWT") operations continue

1. DEVELOPMENT DRILLING

1.1 Kyle Oil Field, UK North Sea (ROC: 12.5%)

At 0600 hrs on 12 September 2001 (UK time), the Kyle development well, 29/2c-14a was preparing to pressure test after setting 7 5/8" liner at 3,654 m MDBRT and prior to drilling ahead in the Palaeocene reservoir sands. The well, the third production well in the Kyle Field, is the first designed to produce from the Palaeocene sands.

2. DEVELOPMENT TESTING

2.1 Chestnut Oil Field EWT, UK North Sea (ROC: 14.875% carried)

At 0600 hrs on 12 September 2001, (UK time) the EWT on well 22/2a-11x had resumed after being suspended due to inclement weather.

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

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Title : Open Briefing. Roc Oil. CEO on Profit & Outlook

corporatefile.com.au
Roc Oil Company Limited (ROC) recently announced a 203 percent rise in after tax profit before significant items to $10.0 million (eps of 9.4 cents) for the half year to June 30, 2001 from $3.3 million. What were the main drivers of the rise?

CEO John Doran
There were two main drivers. Oil and gas prices have been relatively strong in the UK and our Kyle Oil and Gas Field (ROC 12.5 percent) in the North Sea came onto production in April. Company-wide production was split about two thirds gas and the balance oil. The majority of the profit was derived from the Saltfleetby Gas Field (ROC 100 percent - onshore UK). The contribution from oil will rise in the current half year with a full six months of production from Kyle.

corporatefile.com.au
Cash flow from operations for the half was down 21 percent to $35.6 million ($0.33 per share), from $45.0 million in 2001. You have no net debt as at June 30, 2001. Where will the cashflow be allocated?

CEO John Doran
We have an important drilling programme planned towards the end of this year, not big in terms of number of wells, but big in terms of our equity and potential impact. We are drilling Saltfleetby-6 of which we own 100 percent and Cliff Head-1, offshore Perth Basin, of which we own 30 percent.

corporatefile.com.au
What is ROC's profit outlook?

CEO John Doran
More of the same. We expect profit for the current half year to be similar to that of the first half but that will be determined by oil and gas prices. We will benefit from six months of production from Kyle, which was producing for not quite three months in the June half.

corporatefile.com.au
Production for the six months to June was 0.3 million barrels of oil and natural gas liquids and 6.6 billion cubic feet of gas. What production do you expect for the current six months?

CEO John Doran
Broadly speaking, gas production may be down a little at Saltfleetby, depending on how successful compression is, but that may be balanced by slightly higher production at Kyle if the currently drilling well proves to be successful. Compression at Saltfleetby may offset natural field decline, which has actually been quite stable of late.

corporatefile.com.au
In January 2000, company-wide 2P reserves were 33.6 mmboe. Your current producing fields are Saltfleetby and Kyle as well as an extended well test at Chestnut. For how long can you produce from these fields?

CEO John Doran
Both Saltfleetby and Kyle should keep producing for another four to seven years; well beyond the horizon of most market investors. As Saltfleetby and Kyle are new fields they've shown the typically sharp and predictable initial decline, which characterizes fields on first flush production. However, as we've seen at Saltfleetby, with the passage of time the decline flattens out. Chestnut is being tested, rather than being developed, so it is too early to comment on the potential of that field.

corporatefile.com.au
For the half, ROC's oil price received, net of hedging, was up 28 percent to US$27.42/bbl from US$21.42/bbl. ROC's gas price received, net of hedging, was up 40 percent to $5.53/mmcf in the first half from $3.95/mmcf previously. What are the market conditions for gas in the UK?

CEO John Doran
Gas prices are softer because of seasonal influences but prices are still high compared with original expectations and compared to gas prices in Australia - we are getting prices two or three times what we'd get in Australia. UK prices are anywhere between $5 to $7 per mmcf. Prices are expected to pick up again as we move into winter.

corporatefile.com.au
As at June 30, 2001 ROC held cash of $63.0 million and had drawn down $60.1 million in Australian dollars of a US dollar syndicated bank loan. Why are you holding such a large amount of cash?

CEO John Doran
We're holding the cash because we haven't found anything worthwhile to spend it on. That's not through lack of trying. We continue to search for "the next big thing" and we'd expect that to eat up much of that cash - and let's not forget that the figures you're quoting are in Aussie dollarettes!

If, by early next year, we still haven't found "the next big thing" and we've had further success in Mauritania or initial success in the offshore Perth Basin, or wherever, then we'll consider directing that discretionary cash to internal projects and growing "the next big thing" from within our internal portfolio.

Our level of debt hasn't changed for some time and it's more than covered by our producing assets. First repayments are only required from 2002. The debt facility allows us flexibility and causes no pain.

corporatefile.com.au
In June 2001, ROC exercised its option to acquire Elixir Corporation for $3.7 million and 2.5 million ROC shares. Elixir's only asset is its 2.0 to 2.7 percent interest in licenses offshore Mauritania including the Chinguetti-1 oil discovery. What are the Chinguetti-1 plans and what other exploration activities are planned in Mauritania?

CEO John Doran
The joint venture is yet to meet to finalise its plans for 2002. The current expectation is that two to four wells will be drilled offshore Mauritania. One of those will probably be an appraisal well on Chinguetti-1 and at least one of the others is expected to be an exploration well. Hopefully, the first well will be drilling during the first quarter 2002. I'd emphasise that all plans are subject to a formal joint venture decision.

corporatefile.com.au
In February 2000, you exercised an option to acquire 45 percent and become operator of WA-286-P in the Perth Basin, offshore Western Australia. What plans do you have there?

CEO John Doran
We are now earning a 30% interest following a farmout of 15% to Mitsui. Towards the end of the year we are going to drill Cliff Head-1 on behalf of our expanded joint venture. The well is fairly shallow and will test an exploration concept with a fair degree of risk. If it works, though, it will change the company.

corporatefile.com.au
During the half, apart from the acquisition of the Mauritania interest, ROC spent $16.0 million on exploration including $7.9 million in Equatorial Guinea. What expenditure is planned in the current half and can you please summarise your near-term drilling programme and where you are most optimistic of success?

CEO John Doran
We will spend around $13 million on exploration and development drilling in the current half, without reference to the current Kyle well, which is almost complete.

In the next four to six months we will finish the extended well test at Chestnut where our costs are covered by a carry from the operator, Amerada Hess. We will drill the Saltfleetby-6 well, which will be the highest risk appraisal/development well yet drilled in the Saltfleetby Field because we are drilling in a southerly direction for the first time.
We would also like to start drilling the Perth Basin well, which is a rank wildcat.

In addition, we will complete the development well at Kyle and hopefully bring that into production.

corporatefile.com.au
In April 2001, you made an ultimately unsuccessful bid for 40 percent of Gulfstream Resources Canada Limited after Anadarko bid 140 percent over your offer. Are there similar opportunities available for ROC?

CEO John Doran
We are constantly looking, but those opportunities come infrequently.

corporatefile.com.au
What impact did the UK foot and mouth epidemic have on exploration in the South Humber Basin and what potential exists around Saltfleetby?

CEO John Doran
Because of the outbreak, we chose not to shoot the 3D survey planned for earlier this year. We hope to be shooting that survey early next year and, if that is the case, we would be about 12 months behind schedule. In the last few months, we've shot 2D seismic surveys and we've also conducted some sub-surface studies.

We think the Humber Basin is a wonderful area that has not really been explored. Over the next two to three years, with plenty of 3D seismic and lots of wells, we hope to find at least one more Saltfleetby.

corporatefile.com.au
The Chestnut Extended Well Test commenced in August, 2001 and flowed at a controlled rate of 14,000 bopd with 6 mmcfd of gas. What is the development timing and what reserves does it contain?

CEO John Doran
I wouldn't put any development timing on Chestnut until the extended well test is deemed a success. We won't know the outcome of that test for some time. In that context, we would be surprised if Chestnut is developed much before the end of next year, particularly since there has been a change of operator, which always causes some time to be lost in the handover process.

corporatefile.com.au
During the first four days of production in April 2001 the two producing wells in the Kyle Oil Field flowed at total rates in excess of 20,000 bopd. What has been the performance since and what reserves does it currently contain?

CEO John Doran
When Kyle first came on in April, it outperformed our expectations. Production is now averaging 16,000 barrels of oil a day, much as expected. Current production is from two wells and we hope that the third well, now being drilled, will kick that higher. When we've seen how that third well performs we will be better placed to fine tune the reserve estimate.

corporatefile.com.au
What's your view on ROC's performance since listing on ASX in August, 1999?

CEO John Doran
That date is fast becoming irrelevant to many ROC shareholders, but to me and my Board and Management colleagues it continues to be an indication as to where our own True North lies. Fundamentally, our financial results have been very good but, market-wise, the share price performance has been lacklustre. Since the start of the year there have been occasional bursts of excitement when we have outperformed our peers. That outperformance has been generally related to our exploration success in Mauritania, which this market seems to value more highly than the more traditional measurements of performance such as profitability and revenue generation. That's not a complaint; just a statement of current Australian market fashion.

With that as a backdrop, our strategy is unchanged and unfolding exactly as planned. It is a twin-pronged strategy with steady revenue from our UK assets generating cash to fund our higher risk international exploration. That is exactly what happened during the June half. We expect to see more of this strategy in action during the current half and early next year when we have an active exploration program planned, which will include Mauritania. All in all, the next nine months are going to be quite interesting on many fronts and I suspect that a number of investors will firm or acquire their positions ahead of that activity.

corporatefile.com.au
Thank you John.

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

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SUMMARY

· North Sea development drilling and extended well testing ("EWT") operations are proceeding

· Encouraging exploration results near the Ettrick Oil Field, UK North Sea

· Cumulative gas production from the Saltfleetby Gas Field passes the 25 BCF mark

1. DEVELOPMENT DRILLING

1.1 Kyle Oil Field, UK North Sea (ROC: 12.5%)

At 0600 on 5 September 2001, the Kyle development well, 29/2c-14a, had set 7 5/8" liner at 3,654 m MDBRT and was pressure testing prior to drilling ahead in the Palaeocene reservoir sands. The well, the third production well in the Kyle Field, is the first designed to produce from the Palaeocene sands.

2. DEVELOPMENT TESTING

2.1 Chestnut Oil Field EWT, UK North Sea (ROC: 14.875% carried)

At 0600 on 5 September 2001, the EWT on well 22/2a-11x was temporarily suspended due to weather conditions, prior to which the well had been producing more than 11,000 barrels of oil per day, with some associated water, which had been anticipated. Since commencing in late July 2001, the test has produced some 425,000 barrels of oil, approximately one third of the 1.25 million barrels EWT production target.

3. EXPLORATION ACTIVITY NEAR THE ETTRICK FIELD, UK NORTH SEA

During the last couple of months the potential significance of the Buzzard oil discovery, approximately 22 km southwest of the Ettrick Oil Field (Attachment 1), has become more apparent.

The discovery was announced in July 2001 by the operator PanCanadian Petroleum Limited in a media release that referred to an oil column of at least 229 metres defined by two wells that had encountered an oil reservoir with an average porosity of 24% and permeabilities up to 3 Darcys. According to the release, the two wells have only partially evaluated the structure but have confirmed recoverable oil reserves in the range of 200 to 300 million barrels. On this basis, the Buzzard discovery appears to be the largest oil discovery in the UK North Sea for more than a decade.

Buzzard is viewed as being encouraging from ROC's point of view because the Company has interests in three permits in the vicinity of the discovery, which not only include the Ettrick Oil Field but also a number of untested prospects and leads (Attachment 1).

4. PRODUCTION

After a little more than twenty months production, the Saltfleetby Gas Field has produced its 25th billion cubic foot of gas. Current gas production rates at Saltfleetby have been around 30 MMSCFD with no significant recent decline. Prior to the end of September 2001 it is anticipated that Saltfleetby gas production may increase by 10% to 15% when the field goes on to compression. Based on the previously reported 73 BCF of original recoverable gas reserves attributed to the field, the remaining gas reserve at Saltfleetby may be regarded as being in the order of 48 BCF, subject to any end-2001 reserve review.

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

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Earlier today ROC released its financial results for the first half of 2001 a summary of which is provided below.

SUMMARY

· $10 million after tax profit, equivalent to an underlying after tax profit of $13 million before net, largely unrealised,
  foreign currency losses.

· $51 million total sales revenue.

IMPORTANT NOTES

For a meaningful comparison between ROC's financial results for the first half of 2001 and the corresponding period for 2000, an adjustment needs to be made to recognise last year's $57 million sale of ROC's non-core onshore UK assets, which provided the Company with a one time, after tax, profit of $18.1 million during the first half of 2000.

ROC's financial results for the first half of 2001 are summarized below. Where appropriate, a comparison is made with the underlying results for the corresponding period last year which takes into account the adjustment for last year's non-core asset sale.

KEY POINTS

· $13.0 million underlying after tax profit; up $6.7 million (106%) on the comparable underlying profit of $6.3 million for the  corresponding period last year, excluding the non-core asset sale.

· 9.4 cents earnings per share on an after tax profit of $10.0 million, which includes net foreign currency losses; up 6.3 cents  per share (203%) on the 3.1 cents per share comparable underlying earnings for the corresponding period last year, excluding  the non-core asset sale.

· $51.1 million total sales revenue; up $5.7 million (12.6%) from the comparable $45.4 million sales revenue for the corresponding  period last year.

· $32.3 million EBITDA; up $6.7 million (26%) on the $25.6 million EBITDA for the underlying result for the corresponding period  last year, excluding the non-core asset sale.

· $35.6 million cash flow from operations; up $8.2 million (30%) from the $27.4 million comparable underlying result for the  corresponding period last year, excluding the non-core asset sale.

· Production of 1.4 million barrels of oil equivalent (MMBOE) total gas, oil, and natural gas liquids; down 0.5 MMBOE (25%)  from the 1.9 MMBOE produced during the corresponding period last year, mainly due to natural production decline at the Saltfleetby Gas Field.

· $63.0 million cash as at 30 June 2001; up $3.7 million (6.2%) from $59.3 million cash as at 30 June 2000.

· No net debt at 30 June 2001.

· US$30.5 million borrowing; unchanged from 30 June 2000 with no further repayments expected until the first half of 2002.

· Continuing strong UK gas prices and Brent oil prices.

CEO'S COMMENTS

Commenting on the first half 2001 results, ROC's Chief Executive Officer, Dr John Doran, stated that:

· The results demonstrate that ROC's two-pronged strategy is working well on a fundamental level. This twin strategy is based  on ROC using its strong cash flow from production onshore UK and in the UK North Sea to fuel the Company's big hit  international exploration program and further field developments.

· It is encouraging to see ROC's UK operations delivering strong financial results during a reporting period which also saw  the Company's first significant international oil discovery at Chinguetti-1 in the deep waters offshore Mauritania, West Africa.

· While ROC's strategy may be considered to be working well from a fundamental point of view, it is yet to have a lasting impact  on the Company's share price, which continues to essentially track sector and peer group trends - except during periods of  exploration success and excitement such as occurred during the drilling of Chinguetti-1.

· ROC's Board and Management is conscious of the dislocation between the Company's fundamental value and the value  currently assigned to it by the sharemarket. Enhancing shareholder value so that ROC's market capitalisation more closely reflects the Company's true value, is something which constantly exercises the collective mind of ROC's workforce.

· There are several ways by which ROC can outperform the sector and its peer group. One is for the Company to add a  significant new venture to its portfolio and, as part of this process, ROC is continuing its search for the "next big thing".  Another opportunity to enhance shareholder value will occur as the Company's drilling program in the UK, offshore Western  Australia and offshore Mauritania accelerates towards the end of this year and into the first half of 2002. Further success  with the drill bit in any of these upcoming wells should create significant value for ROC shareholders.

· In the meantime, although the market may not focus on the cash flow and profit being generated by ROC's UK operations,  those operations and assets, and the solid revenue base they represent, are being used to drive the Company towards its  value enhancement goal.

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

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