| FEBRUARY 2004 - RELEASES |
| ROC'S 2003 FINANCIAL RESULTS: (25-02-2004) |
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To
view the SUMMARY OF ROC’S 2003 FINANCIAL RESULTS, click
here
To view the Directors’ Report, Directors’
Declaration and Annual Financial Report for the Financial Year Ended 31
December 2003, click
here
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| ACTIVITY UPDATE (23-02-2004) |
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KEY POINTS • Because of better than expected progress with regard to the previously reported mechanical problem at the third party-owned Theddlethorpe Gas Terminal, the Saltfleetby Gas Field, onshore UK, is expected to come back on to full production much sooner than expected, probably next week, rather than in two months time. • New contract gas prices for the Saltfleetby Gas Field have been agreed for the Contract Year commencing 1 October 2004. The prices vary from quarter to quarter and, on average, are approximately 18% higher than the current contract. • The multi-well drilling programme offshore China is now expected to start during the second week of March 2004, subject to receipt of the designated rig. • Discussions are underway with relevant parties with regard to contracting a rig for a ROC-operated deepwater well offshore Equatorial Guinea, which is currently scheduled to start drilling in mid-2004.
1.
SALTFLEETBY GAS FIELD, ONSHORE UK (ROC: 100% & Operator)
Commenting on the gas compressor situation at Theddlethorpe, ROC’s Chief Executive Officer, Dr John Doran, stated that: “It is not often that mechanical problems in the resource business are fixed up ahead of original expectations, but that is what seems to be happening in this case, thanks to the efficiency of ConocoPhillips, the operator of the Theddlethorpe facility. If the compressor is back on by early March, in line with the latest advice, ROC’s operating cashflow is likely to be reduced by approximately A$1.2 million, rather than the A$5 million estimate provided in ROC’s ASX Release dated 13 February 2004.”
Commenting on the new contract gas prices, ROC’s Chief Executive Officer, Dr John Doran, stated that: “This is the third year in a row that the continuing strengthening of the UK gas price has been reflected in stronger contract gas prices for Saltfleetby gas, approximately 50% of which is sold under the contract terms. From a revenue point of view, the strengthening of the contract price will go someway towards offsetting the natural field decline as Saltfleetby enters its more mature productive years.”
3.
BLOCK 22/12, BEIBU GULF, OFFSHORE CHINA (ROC: 40% & Operator) As stated in previous releases to ASX, the first well in the programme, the Wei 12-7-1 exploration well, will take about ten days to test a prospect with the potential to contain several tens of millions of barrels of recoverable reserves. Wei 12-7-1 will be followed immediately by another ten day well, Wei 12-8-3, an appraisal well of the Wei 12-8 oil accumulation which is estimated to have the potential to contain recoverable reserves of between 20 and 30 MMBO, subject to successful appraisal. Subject to the results of the first two wells, the Block 22/12 Joint Venture has made provision to drill up to three more back-to-back wells as part of the current drilling programme. In order to drill the fourth and fifth wells in this programme, the results of the first two or three wells would have to be very compelling.
The Block
22/12 Joint Venture consists of: Please note that in the event of a commercial development within Block 22/12 the interests held by the current joint venturers will reduce on a pro-rata basis by up to 51%, if the China National Offshore Oil Corporation (“CNOOC”) exercises its right to participate for up to a 51% equity level in the development.
ROC has initiated discussions with relevant parties with regard to contracting a drilling rig for the Company’s first operated deep water well in the Rio Muni Basin, offshore Equatorial Guinea, West Africa. Subject to successful contract negotiations, it is anticipated that the well will start drilling in mid-2004 on one of several high graded prospects identified as a result of the interpretation of a high resolution 1,400 sq km 3D seismic survey acquired in 2001.
Bruce
Clement |
| MECHANICAL PROBLEM AT THIRD PARTY OWNED PROCESSING PLANT CONSTRAINS SALTFLEETBY GAS FIELD PRODUCTION (13-02-2004) |
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KEY POINT • Production from ROC's Saltfleetby Gas Field has been temporarily reduced by approximately 75% due to mechanical failure of the third party owned gas compression facilities at the Theddlethorpe Gas Processing Terminal.
SALTFLEETBY
GAS FIELD - (ROC: 100% & Operator) •
The reduction in production has not been caused by factors related to
the operation of the Saltfleetby Gas Field;
Bruce
Clement |
| ROC
TO BE OFFERED OPPORTUNITY TO APPRAISE TOTARA-1, POTENTIAL GAS ACCUMULATION, ONSHORE TARANAKI BASIN, NEW ZEALAND (12-02-2004) |
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KEY POINTS • The Government of New Zealand has given notice that it intends to offer ROC a 40% interest in PEP38767, in the onshore Taranaki Basin in the North Island of New Zealand. • PEP38767 contains the Totara-1 well which was drilled in 1987. According to a recent review of mud log data, the well may contain 25 metres of previously unrecognised net gas pay in a structure which is believed to have the potential to contain up to 50 to 100 billion cubic feet of recoverable gas. • ROC is the designated Operator and the only publicly-listed company in the relevant Application Group, the other two members of which are privately owned oil companies; one based in the United States and one based in New Zealand. Subject to receipt and acceptance of the formal offer, the Joint Venture would intend to acquire a 20 sq km 3D seismic survey over the Totara structure during 2004 ahead of drilling a well on the structure during 2005. ROC’s anticipated net share of the work programme commitment for the two years is expected to total between US$1 million and US$2 million. • ROC’s experience from developing and producing the Saltfleetby Gas Field, onshore England, will be directly relevant to its activities onshore Taranaki. Coincidentally, the significance of the Saltfleetby Field was only recognised as a result of a review of the mud log data from a well which was originally drilled in 1986 and initially dismissed as being of no commercial consequence. • PEP38767 will be offered to ROC and its co-venturers at a time when New Zealand is seeking to address an increasing divergence between forecast energy demand and forecast indigenous oil and gas production.
1.
BACKGROUND The onshore Taranaki Basin is a significant and well established petroleum province with well developed infrastructure. Its technical merits are self-evident by virtue of the presence of excellent source rock, good reservoirs, a high degree of structuring and a number of producing fields. The commercial potential of the basin has been accentuated in recent years by New Zealand’s anticipated energy shortfall which means that even modest-sized gas discoveries are expected to be commercially viable.
2.
THE TOTARA PLAY CONCEPT Totara-1 was drilled in 1987 and plugged and abandoned as a dry hole with gas shows. Recent review of publicly available mud log data has highlighted the possibility that the well may have drilled through 25 metres of net gas pay, which was recognised at the time, but could not be tested due to mechanical problems. If this is correct, the Totara structure, as presently defined by 2D seismic acquired in the mid 80s, could have the potential to contain up to 50 to 100 billion cubic feet of recoverable gas. If this play concept proves to be correct, the commercial development of the Totara Field could be a very attractive commercial proposition. In order to appraise the Totara structure, ROC and its co-venturers believe that 20 sq km 3D seismic survey would need to be acquired during 2004 and an appraisal well drilled in 2005. The total net ROC expenditure for this two year work programme is expected to be in the order of US$1 million to US$2 million depending upon operational details. The Block covers an area that is larger than just the Totara play, but the Company intends to initially focus its activities on the Totara play concept.
3.
RELEVANCE TO ROC ROC’s experience from developing and producing the Saltfleetby Gas Field, onshore England, is expected to be directly relevant to the appraisal of the potential Totara gas accumulation. Coincidentally, the Saltfleetby Gas Field was first “discovered” by reviewing the mud logs of a well drilled by a previous operator in the mid 80s which did not recognise the presence of productive gas pay. From that inauspicious beginning the Saltfleetby Gas Field has been developed into the largest gas field onshore UK, with initial proved and probable recoverable reserves of 90 billion cubic feet. On the basis of the currently available data, the Totara structure has the potential be of a comparable size. ROC’s operations at Saltfleetby are conducted within a rural community environment, which will also be the case at Totara. Saltfleetby’s development has benefited from its proximity to well established infrastructure, with the field being linked by a 10 kilometre pipeline to one of Britain’s largest gas processing plants. Again, this bears comparison with Totara’s location which is within six kilometres of existing pipeline infrastructure. One of the major steps forward that ROC achieved at Saltfleetby was the application of 3D seismic technology and a similar approach is also expected to provide crucial technical insights into the play concept at Totara.
4.
CEO’S COMMENTS Commenting on the Government’s offer of PEP 38767, ROC’s Chief Executive Officer, Dr John Doran, stated: “For ROC, PEP38767 would seem to be a perfect first time entry point into New Zealand and fits well within ROC's medium term exploration strategy and plans. It is almost exactly two years since ROC last entered a new exploration area: China, in February 2002. During the intervening 24 months, ROC has undertaken a dozen separate portfolio transactions, all of which have been designed to consolidate its interests in its existing core areas, particularly the offshore Perth Basin, Western Australia and offshore Mauritania. With this consolidation phase now nearing completion and with the Chinguetti and Cliff Head oil fields moving towards their final investment decisions, the time frame for ROC’s activities in Taranaki fits in very nicely with the timing of the Company’s other appraisal and development projects. In a previous corporate life, some of ROC’s current Board members enjoyed significant exploration success in the onshore Taranaki Basin in the mid-80s. These board members were then key executives with a US independent which organised a farmin group that drilled a multi-well exploration drilling programme which resulted in the discovery of the Aurora and Tariki gas-condensate fields and the Waihapa Oil Field. Ironically, the Totara-1 well operated by the then national oil company of New Zealand, Petrocorp, was also drilled as part of that same programme. Therefore, although this is ROC’s first corporate entry into New Zealand, for some of us it is a return to what was once a very happy hunting ground.”
Bruce
Clement |
| ROC CONCLUDES PURCHASE OF ADDITIONAL INTERESTS IN MAURITANIA (02-02-2004) |
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Roc Oil Company Limited advises that it has concluded the acquisition of its pro rata share of Agip Mauritania B.V.'s 35% interest in each of Production Sharing Contract ("PSC") Area A and PSC Area B, offshore Mauritania. Agip Mauritania B.V. was a wholly owned subsidiary of the Italian oil and gas company, ENI Exploration B.V. As a result
of the transaction, ROC's equity in PSC Area A, which contains the Banda
discovery, has increased from 2.7% to 4.155% and in PSC Area B, which
contains the Chinguetti and Tiof/West Tiof fields, its interest has increased
from 2.4% to 3.693%. The A$5 million net cost to ROC will be sourced from
internal funds.
Bruce
Clement Return to ASX Releases main page
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