9th Aug 2006 07:02
Roc Oil Company Limited09 August 2006 9 August 2006 ROC OIL COMPANY LIMITED ("ROC") STOCK EXCHANGE RELEASE ROC COMPLETES PURCHASE OF APACHE CHINA Consistent with ROC's previous Stock Exchange Releases on 27 June 2006 and 31July 2006 the Company completed the purchase of 100% of the shares of ApacheChina Corporation LDC ("Apache China") on 8 August 2006. Apache China's sole asset is a 24.5% operated interest in the Production SharingContract pertaining to the Zhao Dong Block ("the Block"), Bohai Bay, offshoreChina. As previously advised the purchase price of US$260 million (A$350 millionat current exchange rates) plus a working capital adjustment of US$15 million(A$20 million at current exchange rates) is financed 100% by a 12 month loanprovided by the Commonwealth Bank of Australia. The effective date of thetransaction was 1 July 2006. The Block is part of a prolific producing petroleum province and is currentlyproducing approximately 30,000 barrels of oil per day ("BOPD") (ROC net workinginterest*: 7,300 BOPD) from two fields. Proved and probable remainingrecoverable oil reserves are estimated to be 61 million barrels of oil ("MMBO")(ROC net working interest*: 15 MMBO). As a result of this transaction ROC's production and operating profile hassignificantly increased. In less than six months ROC's net oil production hasincreased from less than 50 BOPD to more than 12,000 BOPD. ROC now operates onbehalf of joint ventures offshore China and offshore Western Australia more than40,000 BOPD. In a China context this makes ROC the third largest foreignoperator of oil production in that country. In conjunction with closing the acquisition, and in addition to oil pricehedging previously reported on 31 July 2006, ROC has executed further Brent oilprice swaps for 1.31 MMBO for the period 1 July 2008 to 30 June 2011 at aweighted average price of US$72.16 per barrel. These swaps together with the oilprice swaps previously reported represent approximately 23% of ROC's forecasttotal 2P oil production for the period 1 July 2006 to 30 June 2011. Commenting on the transaction ROC's Chief Executive Officer, John Doran, statedthat: "Leaving aside all the usual platitudes about the transformational impact ofthis purchase, perhaps the key point for shareholders and potential investors tonote is that this deal is a direct consequence of ROC's strategic emphasis onits operating capacity both in Australia and overseas, together with a strongand extensive network of international contacts". *Interest is held through ROC's wholly owned subsidiary "Apache China" 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: 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 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Rockpool Acqui