| APRIL 2002 - RELEASES |
| QUARTERLY REPORT FOR QUARTER ENDING 31 MARCH 2002 (30-04-02) |
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| ACTIVITY UPDATE (24-04-02) |
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KEY POINTS
As at midday
(local time) on 23 April 2002, the Mogoi-1 exploration well was drilling
ahead in 12¼ inch hole at a depth of 1,370 metres. The programmed
total depth of the well is 2,980 metres. 1.2 Seismic Recording of the 254 sq km Lincs Wolds 3D seismic survey has been effectively completed.
3. JOINT VENTURE ACTIVITY
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· A supplementary 10% levy to be applied to exploration and production company profits derived from UK operations. This effectively increases the tax take by a third, from the current 30% Corporation Tax (CT) rate to 40%. Unlike CT, the 10% levy will not allow any deduction for financing cost. · Development capital allowances, which previously qualified for a 25% write down allowance, will now qualify for a 100% allowance in the first year. The industry
is still digesting the implications of the proposal and a number of details
are expected to be clarified within the next few weeks. 4.2 Impact on ROC Due to ROC's recently announced proposed sale of its interests in the Kyle and Chestnut oil fields in the UK North Sea, the immediate impact of the proposed tax changes will be confined to its 100% owned and operated Saltfleetby Gas Field in Lincolnshire. Because of ROC's current and planned expenditure levels in the UK, the tax changes will only have a muted effect on ROC's near term cash flow, although the profitability of Saltfleetby will be potentially reduced by around 14% and there will be a corresponding adjustment in the net present value of this field, which will reduce that value to about $100 million, approximately 92 cents per ROC share. This valuation is based on an independent calculation at end-2001 by Aberdeen-based consultants Brovig RDS Ltd (now known as Helix RDS Ltd) using risked (proved plus half probable) reserves discounted at the cost of capital and modified by ROC to reflect the adverse tax changes referred to above but not the recently negotiated improvement in the gas contract price. ROC expects
to derive some, albeit modest, near term benefit from the change in the
tax depreciation allowance. In the event that ROC's current exploration
programme in the South Humber Basin in the vicinity of the Saltfleetby
Gas Field results in one or more commercial developments, the Company
would stand to benefit more substantially from the improved capital allowance
rate.
Commenting on the proposed UK tax changes, ROC's Chief Executive Officer, Dr John Doran stated that: "The proposals underscore ROC's view that country risk takes many forms and is certainly not confined to those parts of the world that may be perceived to be somewhat exotic. If legislated, the new tax provisions will have only a limited impact on ROC's UK near term cash flow, will dent the profitability of the Saltfleetby Field and cause a reduction in the net present value of that field that is well within the range of value variances caused by normal product price fluctuations. In any event, at about 92 cents per ROC share the revised value for Saltfleetby would still seem to be significantly higher than the value currently attached to that asset by the Australian stock market. Also,
given its commitment to explore and, hopefully, develop the exploration
potential of the South Humber Basin, ROC may take a small, perverse, comfort
from the fact that the after tax cost of these activities to ROC will
be 60 pence, rather than 70 pence, for every pound spent."
Robert
Gerrard Return to ROC's ASX Releases main page
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| ACTIVITY UPDATE (18-04-02) |
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KEY POINTS 1.1 Drilling 1.1.1 East Gobi Basin, Mongolia (ROC: 50%, carried) The Mogoi-1 exploration well, which started drilling on 17 October, 2001 and was then suspended at 100 metres, as planned, for the northern hemisphere winter, restarted drilling on 11 April 2002. As at 9.00 am on 17 April 2002 the well was drilling ahead in 12¼ inch hole and had reached a depth of 818 metres. The programmed depth of the well is 2,980 metres.
2.1 Drilling 2.1.1 WA-286-P (ROC: 30% and Operator) and TP/15 (ROC: 20%), Perth Basin, Offshore Western Australia) As Operator of the WA-286-P Joint Venture, and by authority of the TP/15 Joint Venture, ROC has issued a tender for a drilling rig to drill up to five wells (two firm and three contingent) in WA-286-P and two wells (one firm and one contingent) in TP/15, planned to be drilled at the beginning of 2003.
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Robert
Gerrard Return to ROC's ASX Releases main page
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| NOTICE OF ANNUAL GENERAL MEETING AND ACCOMPANYING DOCUMENTS (11-04-02) |
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To view the Notice and accompanying documents, click here
Robert
Gerrard |
| SALTFLEETBY GAS SALES CONTRACT PRICE NEGOTIATIONS SUCCESSFULLY CONCLUDED (02-04-02) |
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ROC's wholly owned UK subsidiary, Roc Oil (UK) Limited, and the US$ 4.5 billion Innogy plc ("Innogy") have successfully completed gas price negotiations for the sale of gas from ROC's 100% owned and operated Saltfleetby Gas Field, onshore UK, for the period 1 October 2002 to 30 September 2003. The negotiations resulted in Roc Oil (UK) Limited securing market related prices which have increased by 50% over the three years since the contract was negotiated in 1999, prior to the Saltfleetby Gas Field being developed. Apart from the change in the contract gas price, the terms of the gas sale contract with Innogy remain unchanged, thereby preserving ROC's ability to sell the non-contracted balance of its gas production to Innogy at the prevailing spot price. Commenting on the outcome of the price negotiations, ROC's CEO Dr John Doran said: "The
new contract gas price emphasises just how much UK gas prices have strengthened
since Saltfleetby came on stream almost 2 ½ years ago. When the
price increase kicks in it will go some considerable way towards offsetting
the revenue reduction resulting from ROC's recently announced sale of
its 12.5% interest in the Kyle Field in the North Sea".
Dr John Doran |
| ROC 2001 ANNUAL REPORT (02-04-02) |
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Dr John Doran |