ROC Pumps Oil at Zhanghai Block Offshore China

- ROC Pumps Oil at Zhanghai Block Offshore China

Thursday, August 25, 2011
Roc Oil Co. Ltd.
by SubseaIQ

Roc Oil (Bohai) Company, a wholly owned subsidiary of ROC, advised that production has commenced from the first appraisal well drilled in the new Zhanghai block – one of two adjoining blocks added to ROC's existing Zhao Dong Block Contract in March 2011 with the aim of commercializing previous near field discoveries in the area and encouraging further appraisal activity.

The appraisal well (ZD CP2N-H-1) commenced drilling from the Zhao Dong C4 platform on July 15 and intersected 310 meters of horizontal reservoir section. The well was completed and production through existing C4 facilities has commenced at an initial rate of 3,546 BOPD. PetroChina exercised its rights under the PSC to participate with a 51% interest in the new Zhao Dong blocks on the commencement of completion activities and commercial development of the well, effective August 12. The interests in the two new additional blocks are now PetroChina 51%, ROC 39.2% and Sinochem 9.8%.

ROC is now planning to drill a second appraisal well (ROC 80% cost obligation on dry hole basis) during 2012.

Commenting on the success of the well, ROC's Chief Executive Officer, Alan Linn, stated, "One element of ROC's strategy is to generate future growth by commercializing near field opportunities through existing infrastructure. Extension of the Zhao Dong block provides an opportunity to incrementally develop a number of existing discoveries through existing Zhao Dong facilities in parallel with ongoing development drilling activities. Exploration opportunities within this acreage could also impact the future profitability and recovery life of the existing assets.

"Production from the first appraisal well in the additional Zhao Dong blocks is a positive outcome for all joint venture partners and represents the achievement of another of ROC's key strategic objectives for 2011: to deliver a new production or pre-development opportunity in China."

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ROC to Sell Stake in Mozambique Block

- ROC to Sell Stake in Mozambique Block

Friday, July 08, 2011
Roc Oil Co. Ltd.

ROC has agreed to sell its 75% interest in the Juan de Nova Maritime Profond Block, located in the French Exclusive Economic zone off the coast of Juan de Nova Island (Mozambique Channel), to South Atlantic Petroleum JDN SAS, a wholly owned subsidiary of South Atlantic Petroleum Limited (SAPETRO), for between US $8.0 million and US $8.5 million (depending on date of completion) subject to working capital adjustments. The effective date of the sale is July 1, 2011.

The agreement is subject to normal industry terms and conditions, including the receipt of relevant joint venture waivers or approvals and all necessary government approvals. Due to the approval process completion of the sale may not take place in 2011.

Roc Oil (Madagascar) Pty Limited, a wholly owned subsidiary of ROC, has withdrawn from its 75% interest in the Belo Profond Block, offshore Madagascar (Mozambique Channel) effective June 23, 2011. Marex MC Inc., ROC's current joint venture partner, has elected to take assignment of ROC's entire interest in Belo Profond.

ROC does not carry any value for the Mozambique Channel exploration blocks on the balance sheet.

Commenting on the sale, ROC's Chief Executive Officer, Alan Linn, stated, "The divestment of ROC's interest in the Juan de Nova Maritime Profond Block and its withdrawal from the Belo Profond Block follows the sale of its onshore Angola acreage announced in May. ROC's strategy is to generate future growth through exploration, appraisal and pre-development opportunities located in the focus region of China, South East Asia and Australasia. The deepwater and frontier exploration characteristics of the Mozambique Channel blocks are not consistent with this strategy. ROC's exit from the Mozambique Channel will allow the redeployment of capital and resources to pursue opportunities more consistent with the Company's strategy. ROC will continue to pursue the divestment of its remaining African assets, which are located offshore Equatorial Guinea and offshore Mauritania."

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Roc Increases Stake in Zhao Dong Block

Roc Increases Stake in Zhao Dong Block

Friday, March 25, 2011

Roc Oil Co. Ltd.

Roc Oil (Bohai) Company, a wholly owned subsidiary of ROC, advises that the existing Petroleum Contract covering the Zhao Dong Block in the Bohai Bay, offshore China, has been modified with the aim of commercializing previous near field discoveries in the area and encouraging further exploration activity. The key elements of the modifications are:

• The existing Zhao Dong Block Contract will include two additional blocks; and
• The term of the Zhao Dong Contract and Production Period will be extended when and as necessary to accommodate any new production from the additional blocks.

The existing Zhao Dong Block contract area (28km2) will be increased to include the adjoining Zhanghai (16km2) and Chenghai (26km2) blocks. Participating interests in the newly added blocks are separate from the existing block; ROC 80% and New XCL (Sinochem) 20%, with PetroChina having an option to back-in for 51% on any future commercial development.

It is anticipated that any potential commercial development in the expanded block would utilize existing Zhao Dong facilities and replicate the cost sharing and tariff arrangements previously implemented for the C4 Unitized Field (ROC: 11.575%). ROC will retain operatorship of the expanded Zhao Dong Block.

The initial work program for the additional areas includes the drilling of two appraisal wells from an existing Zhao Dong platform over the next two years, with one anticipated in 3Q 2011. Drilling of the appraisal well in 3Q 2011 will initially add 2P Reserves of 0.6 MMBBL to the expanded Zhao Dong block (ROC working interest 0.2 MMBBL following PetroChina back-in for 51%). It is anticipated that these reserves would be brought into production immediately following the successful completion of the well.

Commenting on the Zhao Dong Block modifications, ROC's Chief Executive Officer, Alan Linn, stated, "One element of ROC's strategy is to generate future growth through appraisal and pre-development opportunities and to commercialize near field opportunities through our existing infrastructure. Extension of the Zhao Dong Block provides the potential to commercialize and incrementally develop a number of small discoveries through Zhao Dong facilities in parallel with ongoing activities. Exploration opportunities within this acreage could also impact the future profitability and recovery life of the existing assets.

This is a positive outcome for all joint venture partners in the Zhao Dong Block. It represents a vote of confidence for ROC's abilities as an offshore operator in China and highlights the continual strengthening of ROC's relationships with PetroChina and Sinochem."