27th Feb 2006 07:02
Roc Oil Company Limited27 February 2006 27 February 2006 ROC OIL COMPANY LIMITED ("ROC") STOCK EXCHANGE RELEASE ACTIVITY UPDATE KEY POINTS • Oil production commenced from the Chinguetti Oil Field, offshore Mauritania. • Topside installation successfully completed at the Cliff Head Oil Field, offshore Western Australia; the field remains on schedule for first oil by end-March 2006. • Drilling and seismic contracts executed for offshore China and onshore Angola, respectively. 1. Chinguetti Oil Field Produces First Oil (ROC: 3.25%) Oil production from the 123 MMBO, Chinguetti Oil Field, offshore Mauritania,commenced on 24 February, 2006. Production is via the 275,000 tonne floatingproduction, storage and offloading vessel, Berge Helene, moored in about 800metres of water, 80 km southwest of the capital Nouakchott. The vessel has astorage capacity of 1.6 million barrels. Production is expected to increasesteadily up to 75,000 barrels of oil per day. The US$720 million developmentcomprises six oil production wells, five wells for water re-injection and onewell for gas re-injection into the nearby Banda Gas Field. The first load out of 60,000 barrels (net ROC) of Chinguetti oil is scheduledfor end-March 2006. ROC has funded its 3.25% share of this ca A$1 billion deepwater development from internal funds so that, as first oil flows, ROC remainsdebt-free. 2. Cliff Head Oil Field Development Milestone (ROC: 37.5% & Operator) Another significant Cliff Head Development project milestone has been achievedwith the Ensco 67 jack-up drilling rig lifting the 498 tonne topside deck ontothe jacket. The Arrowsmith Processing Plant is 92% mechanically complete and commissioninghas begun. First oil is expected at end-March 2006. The new $6.4 million BP Crude Oil Unloading Facility at Kwinana has beencompleted and officially opened by the Western Australian Minister forResources, The Honourable John Bowler, MLA. The Facility was purpose-built tohandle the increase in oil deliveries when the Cliff Head Oil Field comes onstream. All oil production from the field is being sold to BP at its Kwinanarefinery. 3. CEO Comment Commenting on the Chinguetti and Cliff Head developments, ROC's Chief ExecutiveOfficer, John Doran, stated that: "The start-up of oil production from the Chinguetti Field and the plannedstart-up of oil production from the Cliff Head Field in about a month's time areimportant milestones for all concerned. Not only do they mark the onset of freshproduction revenue, but they also represent a change in the nature of projectrisk as development risk gives way to production risk. ROC's attitude to thesefield start-up moments is that while the importance of first production shouldbe acknowledged, it is not the time to celebrate because that is best left untilafter production has been established and the productive capacity of each newfield thoroughly understood." 4. 2006 Angolan Seismic Survey Contract Awarded (ROC: 60% and Operator) A seismic contract has been executed with the Geophysical Institute of Israel(GII) to acquire a firm 250 sq km 3D and a contingent 200 km 2D seismicprogramme in the Cabinda South Block, onshore Angola. The survey will commenceduring 2Q 2006. The planned 2006 exploration drilling programme, scheduled tocommence in September 2006, subject to rig availability, will be based on 2005seismic data, also acquired by GII. 5. Exploration Drilling, Offshore Western Australia The Jacala-1 exploration well in WA-351-P (ROC: 20.0%), offshore Carnarvon Basinis now scheduled to commence drilling in mid-March 2006, due to prolongedoperations at its current location (Attachment 1*). On completion of development drilling operations at the Cliff Head Oil Field,the Ensco 67 jack-up drilling rig will drill at least two exploration wells, inthe offshore Perth Basin: Frankland-1 in WA-286-P (ROC: 37.5%) and Moondah-1 inTP/15 (ROC: 20.0%) (Attachment 1*). Both the WA-286-P and TP/15 Joint Venturesare actively considering drilling wells additional to the planned explorationprogramme. 6. China Drilling Rig Contract Executed (ROC: 40% and Operator) ROC has executed a contract with China Oilfield Services Limited ("COSL")securing the COSL 931 jack-up drilling rig which will be used to drill the Wei6-12 South exploration well in Block 22/12 in the Beibu Gulf. Drilling isexpected to commence in April 2006 (Attachment 1*). 7. North Sea Field Developments Development drilling at the Blane Oil Field (ROC: 12.5%) is now expected tocommence in late April 2006, four weeks later than the most recent previousestimate. For internal planning purposes, ROC is now anticipating first oil fromBlane in 1Q 2007. First oil from the Enoch Oil and Gas Field (ROC: 12.0%) isstill expected during 4Q 2006. (* Attachment 1 attached to the copy of this release on ROC's website:http://www.rocoil.com.au/Public/Announcement/2006/Activity_Update_270206.aspx) Michelle Manook For further information please contact:General Manager - Corporate Affairs Dr John Doran on Tel: +61-2-8356-2000 Fax: +61-2-9380-2635 Email: [email protected] 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: [email protected] Nick Lambert Bell Pottinger Corporate & Financial Tel: +44 (0)207 861 3232 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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