Half Yearly Results/Accounts

Roc Oil Company Limited
31 August 2006




31 August 2006

                         ROC OIL COMPANY LIMITED ('ROC')
                             STOCK EXCHANGE RELEASE

                  PRODUCTION BOOST FOR FIRST HALF 2006 RESULT

                                   KEY POINTS

1.  FINANCIAL

  • 321,727 BBLS produced due to start up of the Cliff Head Oil Field,
    offshore Western Australia and the Chinguetti Oil Field, offshore Mauritania
    compared to 6,818 BBLS for 1H 2005;

  • $17.6 million net sales revenue due to increased production compared to
    $0.4 million for 1H 2005;

  • $4.1 million trading profit compared to $0.1 million in 1H 2005;

  • $3.1 million earnings before interest, tax, amortisation and exploration
    expense compared to $54.6 million in 1H 2005 which mainly reflected the sale
    of the Saltfleetby Gas Field;

  • $22.2 million net loss after income tax which includes $26.6 million
    exploration expensed compared to $56.3 million profit in 1H 2005 mostly
    attributed to the sale of the Saltfleetby Gas Field;

  • $66.2 million development expenditure, mainly related to the Cliff Head
    and Blane oilfields, compared to $30.0 million in 1H 2005;

  • $35.8 million exploration and appraisal expenditure mainly due to
    seismic in Angola and wells offshore Australia and offshore China compared
    to $14.9 million in 1H 2005;

  • $45.3 million cash assets compared to $66.4 million in 1H 2005;

  • $35.0 million interest bearing liabilities in relation to the initial
    deposit for the acquisition of Apache China Corporation LDC, compared to nil
    in 1H 2005.

2.  CORPORATE

  • Share Placement

28,000,000 fully paid ordinary shares, representing 14.9% of the then issued
share capital, were placed to UK institutions at $2.71/share, raising $76.0
million before expenses.

  • Acquisition of Apache China Corporation LDC

Agreed to acquire 24.5% operated interest in the Zhao Dong Block ('Block'),
Bohai Bay, offshore China, for US$260 million through the purchase of 100% of
the shares of Apache China Corporation LDC. The transaction was 100% financed
through a 12-month loan facility from the Commonwealth Bank of Australia. At 30
June 2006 the Block was producing about 30,000 BOPD gross from two fields with
gross proved and probable remaining reserves of approximately 61 MMBO.

  • Resolution of Mauritanian Dispute

In June 2006, the relevant joint venturers signed revised Production Sharing
Contracts ('PSC') for offshore zones A, B, C2 and C6. As a consequence of these
revisions the PSC Area B co-venturers collectively paid a US$100 million (net
ROC: US$3.7 million/$5.0 million) production bonus to the Mauritanian
Government.

3.  PRODUCTION

  • Cliff Head Oil Field, WA-31-L, Offshore Western Australia (ROC: 37.5% &
    Operator)

Production commenced 1 May 2006. Initial production from three of the six
designated production wells was about 8,500 BOPD. The overall budget for the
project increased by a further 15% from $285 million to $327 million (ROC net:
$123 million) due to delays related to the drilling and completion of wells, and
increased construction and commissioning costs.

  • Chinguetti Oil Field, Offshore Mauritania (ROC: 3.25%)

Production commenced 24 February 2006. At 30 June 2006, the field was producing
below expectations at about 34,000 BOPD.

4.  DEVELOPMENT

  • Blane Oil Field, North Sea (ROC: 12.5%)

Development drilling commenced in May 2006 and was continuing at 30 June 2006.
The project cost estimate increased by 25% from £165 million/$413 million to
£206 million/$515 million (ROC net: $64 million).

  • Enoch Oil & Gas Field, North Sea (ROC: 12.0%)

Development activities continued during the period. The project cost estimate
increased by 24% from £75 million/$188 million to £93 million/$233 million (ROC
net: $28 million).

5.  EXPLORATION

  • A total of four exploration wells and one appraisal well, drilled in
    four countries, resulted in a significant oil discovery offshore China.

  • Wei 6-12 South Oil Field, Beibu Gulf, Block 22/12, Offshore China (ROC:
    40.0% & Operator)

The Wei 6-12S-1 well encountered 95 metres of net hydrocarbon pay, mainly oil,
in generally good to excellent reservoirs. Three intervals were tested resulting
in a total stabilised oil flow rate of 5,750 BOPD. Two appraisal sidetrack wells
completed, subsequent to the period, confirmed Wei 6-12 South as a significant
oil discovery.

  • Onshore Angola (ROC: 60% & Operator)

A high resolution aeromagnetic survey was completed covering the entire Cabinda
South Block. Line clearing began for a 254 sq km 3D seismic acquisition
programme which commenced in 3Q 2006.

6.  CEO COMMENTS

Commenting on the half-yearly results, Dr John Doran stated:

'During the first half of 2006 ROC underwent a major transformation from pure
explorer to oil producer with exploration upside. The magnitude of change means
that the percentage comparisons between the key financial indices for the period
under review and those for the corresponding period last year are largely
irrelevant.

The period started with negligible production. By 30 June 2006 the Company was
producing approximately 4,350 barrels of oil per day from the Cliff Head Oil
Field, offshore Western Australia and the Chinguetti Oil Field, offshore
Mauritania. A day later the Company's production effectively shot up to about
12,000 barrels of oil per day as a result of the acquisition of a 24.5% operated
interest in the Zhao Dong Block, offshore China, which was completed in August
with a 1 July 2006 effective date. This transaction represents a very
significant diversification of ROC's production assets.

In January 2006, the exploration focus was largely on Angola. By the end of the
period it had broadened to include China, as a result of a significant offshore
oil discovery in that country. Interests offshore China and onshore Angola
provide ROC with a significant presence in three petroleum systems which are -
to use a terribly overworked phrase - truly world class.

This balance between discovered and acquired production and high potential
exploration is an integral part of ROC's strategy, as is the management of risk
through diversification. This latter strategic element has served the Company
well, particularly during the first half of 2006.'

For a copy of ROC's complete Half Yearly Report and Accounts see ROC's website.
(http://www.rocoil.com.au/Public/Announcement/2006/Half_Yearly_Report_and_Accounts_310806.aspx)


Michelle Manook                              For further information please
General Manager - Corporate Affairs                                contact:
                                                           Dr John Doran on
                                                       Tel: [phone]
                                                       Fax: [phone]
                                                Email: [e-mail]
                                                    Or visit ROC's website:
                                                          www.rocoil.com.au

                                                              Dr Kevin Hird
                                       General Manager Business Development
                                                  Tel:  [phone]
                                                  Fax:  [phone]
                                                Email:  [e-mail]
                                                                                
                                                               Nick Lambert
                                       Bell Pottinger Corporate & Financial
                                                  Tel:  [phone]
                                                                                


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