2005 A$50M Drilling Programme
Roc Oil Company Limited
14 February 2005
14 February 2005
ROC OIL COMPANY LIMITED ('ROC')
STOCK EXCHANGE RELEASE
ROC KICKS-OFF RECORD A$50 MILLION DRILLING PROGRAMME
FOR THE BALANCE OF 2005
KEY POINTS
During the balance of 2005, ROC expects to drill up to 34 wells, 12 (35%) of
which will be operated by the Company. With an anticipated net cost to ROC in
the order of A$50 million this is a record level of drilling activity for the
Company, both in terms of number of wells to be drilled and magnitude of
investment. The programme will span six countries and a range of different
drilling environments from deep water offshore West Africa to onshore wells in
the UK and New Zealand. Nineteen (56%) of the wells relate to oil field
developments offshore Mauritania, in the UK North Sea and, subject to Final
Investment Decision, offshore Western Australia.
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Attachment 1* summarises ROC's current expectations regarding its drilling
programme for the balance of 2005. This programme effectively commenced on
Saturday, 12 February when ROC, as operator of the Cliff Head Oil Field
Development Project, received the ENSCO 56 jack-up drilling rig for tow to the
Cliff Head-5 location where drilling is expected to start on/about 18 February
2005.
It is important to note that all drilling programme forecasts are inevitably
subject to change according to rig availability, logistics, government approvals
and/or Joint Venture decisions. Attachment 1 should, therefore, be regarded as a
directional guide to ROC's drilling activity for the balance of the year rather
than a definitive, unchanging, prediction.
The main points to note are:
• ROC expects to participate in the drilling of a record 34 wells.
• The total cost of the programme, net to ROC, is expected to be in the
order of A$50 million: a record investment by the Company.
• Nineteen (56%) of the wells will relate to the development of the
Chinguetti Oil Field, currently underway offshore Mauritania, the Ardmore
Oil Field in the UK North Sea, which is also underway, and, subject to Final
Investment Decision anticipated by early March 2005, the Cliff Head Oil
Field, offshore Western Australia.
• If the Chinguetti and Cliff Head development programmes are completed on
schedule it is expected that, within the next twelve months, ROC's
production will increase from zero to about 8,000 BOPD. This is without
reference to the Company's option over up to 26% of the Ardmore Oil Field in
the North Sea which, subject to successful development drilling, could add a
net 2,000 to 3,000 BOPD to ROC's entire 2005 and early 2006 production.
• ROC will operate 12 (35%) of the wells.
• Drilling activity will be spread between six countries and seven
regions: onshore England; UK North Sea; West Africa, specifically deep water
Mauritania and Equatorial Guinea; shallow waters offshore China and offshore
Australia and onshore New Zealand.
• Each of the 15 exploration/appraisal wells is expected to have the
potential to add at least several million barrels to ROC's net proved and
probable reserves - and some of those wells have the capacity to add a lot
more.
Commenting on the 2005 drilling programme, ROC's chief Executive Officer, Dr
John Doran stated that:
'During the last couple of months the transactional side of ROC's activities has
been in the ascendancy with the sale of the Saltfleetby Gas Field, the purchase
of an option over the Ardmore Field in the UK North Sea and the placement of
shares at a premium to market price. While ROC expects to continue to
participate in other value-adding transactions during 2005, one of the other
elements which will characterise the balance of the year will be a record level
of drilling activity.'
*For Attachment 1 see copy of this release on ROC's website
(http://www.rocoil.com.au/Pages/ASX_Releases/2005_Releases/February-2005.html)
Dr John Doran
Chief Executive Officer For further information please contact:
Dr John Doran on
Tel: +61-2-8356-2000
Fax: +61-2-9380-2635
E-mail: jdoran@rocoil.com.au
Or visit ROC's website:
www.rocoil.com.au
Dr Kevin Hird
General Manager Business Development
Tel: +44 (0)207 586 7935
Fax: +44 (0)207 722 3919
Email: khird@rocoil.com.au
Nick Lambert
Bell Pottinger Corporate & Financial
Tel: +44 (0)207 861 3232
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