| JUNE 2005 - STOCK EXCHANGE RELEASES |
| ROC ADOPTS AUSTRALIAN-INTERNATIONAL FINANCIAL REPORTING STANDARDS ("A-IFRS"): (23-06-2005) |
The impact of the adoption includes: • Changes to ROC’s accounting policies including: taxation, functional currency, restoration and share based payments. • Preparation of revised 2004 financial statements to be used as comparative information in the 2005 half year and year end accounts. • Adjustments (for periods prior to 2004) applied directly to shareholders’ equity. • A-IFRS compliant half year accounts for 2005 which are due to be released in August 2005
The effects of adopting A-IFRS include: 1. A reduction in shareholders’ equity of $17.4 million (from $226.8 million to $209.4 million) as at 31 December 2004. 2. A restated full year loss after tax for 2004 of $31.6 million. This is a $7.2 million decrease compared with the previously reported loss after tax of $38.8 million calculated using Australian Generally Accepted Accounting Principles (“A-GAAP”). 3. An adjusted profit of $80.7 million from the Sale of Saltfleetby which has been recognised in 2005.
Return to ASX Releases main page
|
| MAURITANIA OFFSHORE DRILLING UPDATE: (22-06-2005) |
Two of the wells, Sotto and Colin, will target relatively high risk but potentially high reward prospects in PSC Area A. The third well, Espadon, is targeting a medium risk, moderate reward prospect close to the Tiof Discovery in PSC Area B. It is planned to commence drilling these wells in late July 2005 using the Stena Tay drill rig. The locations of these three initial exploration wells and previous Woodside-interest wells and discoveries are shown on the attached map. A further three wells are likely before the end of the year, including one in PSC Area C6. Subsequent announcements will be made concerning these wells. The West Navigator drillship continues working on Chinguetti development wells. Woodside does not plan to issue announcements regarding operations on Chinguetti development wells, but will do so if necessary to comply with its continuous disclosure obligations under the ASX Listing Rules." Participating Interests in the Chinguetti Exploitation Perimeter and PSC areas in which activity is planned are:
Company............................... . . . . Chinguetti Development . . . . PSC Area A . . . .PSC Area B . . . .PSC Area C6 |
| ACTIVITY UPDATE: CHINA (15-06-2005) |
The development of the Wei-12-8-West offshore oil field, in Block 22/12 in the Beibu Gulf , continues to be the subject of close collaboration between Roc Oil and the regional subsidiary of the China National Offshore Oil Company (“CNOOC”). In this regard, Roc Oil is acting as Operator of the Block 22/12 Joint Venture which also includes PetSec Energy Limited, Horizon Oil Limited and Oil Australia Pty Limited, a subsidiary of First Austral ian Resources. In this context, Roc Oil is finalising an Overall Development Plan which will be submitted to the relevant government authorities by end July 2005 and which will then be subject to further detailed discussion prior to a final development decision being made prior to end October 2005. Planing is also continuing with regard to the drilling of at least one exploration well in Block 22/12 before end-2005, subject to a suitable rig being available.
With regard to potential new ventures in China, Roc Oil is continuing to evaluate opportunities both offshore and also onshore. The onshore opportunity is at Fushun , in Liaoning Province in northeastern China . Roc Oil has been in discussions with relevant parties about opportunities centred on Fushun for more than four years. The Fushun Mining Group (“FMG”) is the key player in a profitable and well established sub-sector of the Chinese energy industry based at Fushun which produces oil from shale rock. During the current visit to Australia by the Governor of Liaoning Province, which has a population of almost 50 million people, the Lord Mayor of Fushun and senior FMG executives, Roc Oil signed a Letter of Intent with FMG which is designed to progress further Roc Oil's potential involvement with the oil business in this part of China .
Commenting on the progress of projects in China , Roc Oil's Chief Executive Officer, Dr John Doran , stated that:
Return to ASX Releases main page
|
| STOCK EXCHANGE RELEASE - ARDMORE RE-DEVELOPMENT UPDATE: ADMINISTRATIVE RECEIVER APPOINTED FOR ACORN NORTH SEA LIMITED (03-06-2005) |
• At the request of Roc Oil (GB) Limited (“ROCGB”), a wholly owned subsidiary of ROC, Kroll Limited has been appointed as Administrative Receiver over Acorn North Sea Limited (“ANSL”). The move is designed to preserve ROCGB’s entitlements as lender with first ranking security over ANSL’s assets in accordance with a Security Agreement acquired by ROCGB on 17 December 2004 (the “Security Agreement”). • ROCGB’s request that an Administrative Receiver be appointed to ANSL was triggered by uncertainty concerning the future of the Operator of the Ardmore Field, Tuscan Energy (Scotland) Limited (“TESL”) and consequential concerns about the future viability of the Ardmore project. • ROCGB’s association with the Ardmore Field is through an Agreement which entitles, but does not oblige, the company to acquire up to 26% equity in the Ardmore Field (the “Option”). Because this Option has not been exercised, ROC has no ongoing financial obligation to ANSL or the Ardmore project and there will not be any impact on ROC’s current cash position, reported reserve base or future cash flow projections.
Subsequent to receipt of information indicating that the future of TESL, Operator of the Ardmore Field, is uncertain and, consistent with the terms and conditions of the Security Agreement, Administrative Receivers have been appointed to ANSL in order to preserve and realise the maximum value of that company’s assets. Presently, ANSL’s assets include 35% of the Ardmore Production Licence and surrounding exploration licences, which contain exploration prospects and small undeveloped, or partly developed fields: cash in a US$ account and an entitlement to 35% of the value of a cargo of crude oil currently in a tanker awaiting sale in Europe. ROCGB is the majority bank under the Security Agreement, which entitles the lenders to first ranking security over the assets of ANSL. Since entering into the Agreement in December 2004, ROC has lent a total of £4.5 million, as detailed in ROC’s Quarterly Report for 1Q2005 and its Annual Financial Report for 2004. ROCGB has not made any loan to ANSL since 31 March 2005 and does not intend to make any further loans. In its 30 December 2004 Stock Exchange release ROC stated that it was the Ardmore Joint Venture's intention to workover an existing well to bring it back on to production at a rate in excess of 2,000 BOPD and also to drill a fourth re-development well which it was hoped would further increase the field's production to in excess of 12,000 BOPD by May 2005. Details of ROC’s Option, the Ardmore Field and the immediately surrounding areas, can be found in ROC’s Stock Exchange releases, particularly the release dated 30 December 2004.
“When ROC announced in December 2004 that it had acquired entitlements under the Security Agreement and the Option with regard to the Ardmore Field, it stated that the Company expected to lend up to £4.5 million in relation to the project – and that is what it has done. In order for the Ardmore re-development concept to have had a chance of being successful four key elements were required: trouble free near term operations, a corporately stable and financially robust Operator, production rates generally above 6,000 BOPD and high oil prices. Unfortunately, in recent times neither the operations nor the Operator were trouble free. Furthermore, due to downhole mechanical problems, production recently fell below 6,000 BOPD. The combination of these three factors has had an overall negative impact upon the commercial viability of the project in the immediate term that even high oil prices could not offset. When ROC announced its Option over Ardmore it stated that the oil that remained to be recovered from the field could not be categorised as commercial reserves unless the re-development drilling programme yielded positive results. Because of this, ROC did not book any reserves from Ardmore nor take into account any of the production revenue that could be attributed to the equity parcel over which it had its option. Therefore, the most recent events at Ardmore will not have any impact upon ROC’s reported reserves nor future cash flow. Similarly, ROC took care to structure the arrangement with ANSL so that it acquired an option to acquire an interest in the Ardmore Field, rather than direct equity in that field. As a result, ROC was able to terminate the arrangement at its discretion without any ongoing financial obligation in relation to ANSL or the Ardmore Field. Because of the circumstances referred to above, the technical concept upon which the latest Ardmore re-development plan was based has still not been properly tested. This is frustrating – but it is not so frustrating as to cause ROC to want to lend more money to ANSL as opposed to trying to resolve the situation via the appointment of an Administrative Receiver over ANSL so that the value of ANSL’s assets may be realised in an orderly manner. As this process unfolds, ROC will keep its shareholders fully informed in its usual timely manner.” Return to ASX Releases main page
|