17th May 2006 07:02
Roc Oil Company Limited17 May 2006 17 May 2006 ROC OIL COMPANY LIMITED ("ROC") STOCK EXCHANGE RELEASE EXPLORATION DRILLING UPDATE: WEI-6-12S-1 OIL DISCOVERY, OFFSHORE CHINA KEY POINTS • Log data, including pressure and sampling information, most recently acquired from the Wei-6-12S-1 exploration well, offshore China, confirm three separate gross hydrocarbon columns with individual gross thicknesses of 65 metres, 111 metres and 121 metres, which collectively represent 95 metres of total net hydrocarbon pay, including 80.5 metres of net oil pay. • Two of the three oil columns appear to extend beyond the structural closure as presently mapped. • An appraisal programme consisting of at least two production tests through liner and the drilling of at least one sidetrack well, is expected to commence immediately, subject to equipment availability. 1. OPERATIONS As at 17 May 2006, the Wei-6-12S-1 offshore exploration well in Block 22/12 inthe Beibu Gulf, offshore China, had run and cemented 7 inch liner to 2,521metres below rotary table ("mBRT"). The current operation was preparing to drillahead in 6 inch hole to a revised Total Depth of 2,615 mBRT. Prior to running the liner, a wireline logging programme was undertaken whichincluded the gathering of pressure data and the retrieval of fluid samples.Although the final stages of the pressure testing and sampling aspects of thisprogramme had to be curtailed due to the need to secure the hole ahead of thepossible arrival of Typhoon Chanchu, the bulk of the logging programme wasundertaken as planned. 2. INTERIM RESULTS OF DATA ANALYSIS Technical analysis of all the well data continues but final definitive resultswill not be available for several weeks. Therefore, what follows should beregarded as an interim interpretation of the well results details of which maybe subject to refinement as additional information is gathered and analysed. Inthis context, the main point to note is: • Between 1,947 mBRT and 2,450 mBRT there is a sand-shale-silt sequence which has a gross thickness of 503 metres. There are three main sand packages within this sequence - top, middle and lower - all of which contain oil. The total gross thickness of these three sand packages is 477 metres, of which 154 metres is net sand. Three separate hydrocarbon columns are present with a total gross thickness of 297 metres of which a total of 95 metres is regarded as net hydrocarbon pay with reservoir porosities averaging about 20%. 2.1 Top Sand Package The upper part of the Top Sand package has a gross hydrocarbon column of 50metres and a net hydrocarbon pay of 14.5 metres (29% Net: Gross). Although theelectric logs through this section do not display any obvious gas effect thepressure and fluid sampling programme indicates that the hydrocarbon type inthis part of the section is gas. The lower part of the Top Sand package has a gross hydrocarbon column of 71metres and a net oil pay of 14.5 metres (20% Net: Gross). Oil samples wererecovered from this section. Currently, these two gross hydrocarbon columns are considered to be in a singlepressure regime and as such are regarded as a single gross column. The well did not define an oil-water contact within the Top Sand package. Theweight of currently available evidence suggests that this contact is locatedsome distance down dip, apparently below structural closure, as presentlymapped. 2.2 Middle Sand Package The Middle Sand package has a gross hydrocarbon column of 65 metres of which 31metres (48% Net: Gross) is regarded as net hydrocarbon pay, specifically oil.Based on preliminary analysis of samples recovered from this sand package theoil is light, mobile and non-viscous. The well penetrated an oil-water contactwithin this Middle Sand package which is below the structural closure, aspresently mapped. 2.3 Lower Sand Package The Lower Sand package has a gross hydrocarbon column of 111 metres of which 35metres (32% Net: Gross) is regarded as net hydrocarbon pay, probably oil,although an associated gas cap also may be present. This interval was notsampled because the sampling programme had to be curtailed due to the approachof Typhoon Chanchu. Therefore, comments as to the fluid type in this part of thewell are based on log interpretation and oil shows observed while drilling andas such are subject to confirmation by sampling and/or testing. 3. APPRAISAL PROGRAMME The Block 22/12 Joint Venture has decided that the Wei-6-12S-1 well merits athorough and immediate appraisal programme. The details of this programme arecurrently being discussed with all interested parties, including relevantgovernment authorities. Presently, the appraisal programme is expected toinclude at least two production tests through liner and the drilling of at leastone sidetrack well. Subject to sourcing the relevant equipment this phase ofoperations is expected to be carried out during the next several weeks. The nextStock Exchange Release will further detail the appraisal programme and isexpected to be issued next week. Further details about the nature of the prospect and play type can be found inROC's releases to ASX and the Alternative Investment Market of the London StockExchange dated 5 May, 8 May and 10 May 2006 which are on the Company's website:www.rocoil.com.au. 4. CEO'S COMMENTS Commenting on the interim results of the well, ROC's Chief Executive Officer, DrJohn Doran stated that: "The latest results support ROC's previously announced 'cautious optimism'. The presence of gas in the uppermost part of this very thick sand section,although a surprise, is unlikely to be too significant in the overall scheme ofthings, particularly if there is an associated oil leg down dip. The apparent extension of two of the three oil columns down dip beyondstructural closure, as presently mapped, needs to be investigated thoroughly,because, if it is confirmed, the implications could be quite significant. At this stage of exploration, it is always better to gather more data ratherthan speculate - and that is exactly what our immediate appraisal programme isdesigned to do". 5. JOINT VENTURE The Block 22/12 Joint Venture comprises*: EquityRoc Oil (China) Company 40% and OperatorHorizon Oil Limited 30%Petsec Energy Ltd 25%Oil Australia Pty Ltd** 5% \* The China National Offshore Oil Company ("CNOOC") is entitled to participate upto a 51% funding equity level in any commercial development within Block 22/12. ** A subsidiary of First Australian Resources In accordance with new Alternative Investment Market of the London StockExchange ("AIM") rules the information in this report has been reviewed by anappropriately qualified person with more than 5 years relevant industryexperience, specifically, Dr John Doran, Bsc (Hons) Geology; M.Sc; PhD; ChiefExecutive Officer, Roc Oil Company Limited, and a member of the Society ofPetroleum Engineers. 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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