ADX Increases Stake in Kerkouane Permit

- ADX Increases Stake in Kerkouane Permit

Friday, September 09, 2011
ADX Energy

ADX Energy Ltd is pleased to announce a Sale and Purchase Agreement has been executed to buy back a further 10% interest in the Lambouka Prospect Area in the Kerkouane Permit from PharmAust Limited and to cancel the option of PAA to purchase an interest in that part of the Lambouka prospect that extends into Italian waters.

The key terms of the sale are as follows;

Upon payment of US$50,000 by PAA to ADX, ADX will issue to PAA 1,000,000 ADX shares

As part of the consideration ADX will also forgive outstanding past joint venture costs owed by PAA to ADX totalling $400,473.

The transaction is subject to Joint Venture pre emption.

ADX farmed out a 10% interest in the Lambouka Prospect Area to PAA in early 2010 to provide funding for the Lambouka #1 well. The Lambouka-1 well intersected a gas column interpreted based on comprehensive LWD (logging while drilling) and a wireline logging data set which was recovered during the drilling of the well. Unfortunately due to instability of the borehole while drilling and evaluating Lambouka, it was not possible to test the well.

Lambouka is located approximately 70 km North East of onshore Cap Bon in the Sicily channel. The Dougga gas condensate discovery is located approximately 22 km SSW of Lambouka.

Upon conclusion of this transaction ADX will hold a 60% interest in the Lambouka Prospect Area. ADX holds a 100% interest in the remaining Pantelleria License area, over which some Kerkouane participants have options, and the Kerkouane Permit area. ADX operates all licenses and has recently announced the award of the adjacent offshore exploration permit d 364 C.R-.AX in Italian waters acquired at 100% equity interest.

ADX is pleased to have the opportunity to further increase its interest in Lambouka on favourable terms. ADX believes Lambouka and the nearby Dougga discovery represent a material appraisal and development opportunity for ADX.

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Samson O&G Increases Acreage in Hawk Springs Area

- Samson O&G Increases Acreage in Hawk Springs Area

Monday, August 29, 2011
Samson O&G Ltd.

Samson O&G has been awarded, on a conditional basis, approximately 956 net acres of leasehold offered by competitive tender from the University of Wyoming. This land is part of the University's agricultural research facility. Because the acreage is within Samson's propriety 3-D seismic coverage, Samson had a significant advantage by being knowledgeable about the rock qualities in the area. Samson has also been successful in acquiring additional acreage in the State of Wyoming's lease sales as well as leasing acreage from fee owners. Accordingly, Samson has now increased its holding to 17,489 net acres in the Hawk Springs area. This holding assumes that Samson's farminee exercises its full right to earn a 25% interest within the farmin area.

Defender US33 #2-29H, Goshen County, Wyoming, Samson 37.5% working interest (carried)

Samson further advises that the Defender US33 #2-29H well has reached the Niobrara core point at a depth of 6,937 feet and is currently cutting 120 feet of core from the Niobrara 'A' and 'B' intervals.

This vertical pilot hole will then be drilled to an approximate total depth of 7,450 feet, at which point the hole will be logged, with both the core data and the log data used to determine the final horizontal azimuth. The vertical pilot hole will be plugged back to a kick-off point above the Niobrara. From the kick-off point, the borehole angle will be built until it is horizontal and the bit is positioned within the Niobrara "B". Then 7-inch intermediate casing will be set through the curve and the lateral will thereafter be drilled for a distance of approximately 4,300 feet within the Niobrara "B". The well will be completed using a plug and perforation process in 15-stages that is expected to involve the placement of approximately 3,000,000 pounds of proppant into the Niobrara Formation. The Defender US33 #2-29H is the first Niobrara appraisal well in Samson's Hawk Springs project.

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UK Oil Industry Confidence Increases on Quarter

- UK Oil Industry Confidence Increases on Quarter

Wednesday, August 17, 2011
Dow Jones Newswires
LONDON
by Alexis Flynn

The outlook of firms producing oil and gas in Britain improved in the second quarter from the previous three months, data from Oil & Gas U.K. showed Wednesday, although the industry body said business confidence remains "fragile" in the wake of a tax increase announced in March.

Oil & Gas U.K. said overall industry confidence increased modestly from 51 to 54 points. The index measures a number of economic indicators and gauges overall industry confidence on a 100-point scale, with a rating above 50 indicating a more positive outlook and a rating below 50 representing a more negative viewpoint.

Industry confidence fell 12 points on a quarterly basis in May after Chancellor of the Exchequer George Osborne in March imposed a large and unexpected tax rise on the sector, increasing the state's take on oil and gas profits to 32% from 20% overnight.

The government has since announced a concession to North Sea producers by offering some relief for investments in marginal fields.

Ken Cruickshank, Oil & Gas U.K.'s supply chain manager, said that while confidence had improved among the majors, the outlook among independent operators had soured further.

"While it appears that some companies may feel reassured by the Treasury's willingness to engage on ways to mitigate the negative impact of the tax increase on investment, the confidence of many independent operators in particular continued to decline in the second quarter," Cruickshank said.

Copyright (c) 2011 Dow Jones & Company, Inc.

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Otto Increases Stake in Galoc Oil Field

- Otto Increases Stake in Galoc Oil Field

Friday, August 12, 2011
Otto Energy Ltd.

Otto has entered into various definitive agreements to increase its stake in the producing Galoc Oil Field offshore the Philippines from an indirect 18.78% to direct 33.0% under Service Contract 14C (Galoc). Otto will assume 100% ownership of the Operating Company of the field, which is currently producing 6,800 oil barrels per day, on a 100% basis.

Under the terms of the transaction, Otto has agreed to acquire a 68.62% interest in the Galoc Production Company WLL (GPC), the operator of Galoc, from Vitol Group, increasing Otto's interest in GPC from 31.38% to 100%. Through the acquisition Otto will initially increase its stake to 59.84% of Service Contract 14C. Otto has then agreed to cause GPC to on-sell, on the same per percentage point terms, a 26.84% of this stake to Singapore energy investment company Risco Energy Pte Ltd, bringing Otto's post acquisition stake in Galoc to 33.0%. This transaction is subject to relevant Philippines government approvals.

The effective date of the purchase agreement is April 1, 2011. The total purchase price for Otto's share of the purchase price is US $18.7 million. The acquisition will be funded from Otto's existing cash reserves. Completion is scheduled to occur prior to September 30, 2011.

Attractively Priced, Low-Risk Opportunity

The acquisition will increase Otto's proved and probable (2P) reserves by 0.98 million barrels, with an additional 0.64 million barrels of contingent resources (2C). Recently the SC14C joint venture approved the upgrade to the mooring and riser system for the Galoc FPSO. This is expected to substantially increase the operating uptime of the field, and is crucial infrastructure to facilitate a Phase 2 development.

The purchase price for the acquisition is equivalent to US $19 per barrel for proved and probable reserves and US $11.50 per barrel with the inclusion of contingent resources, which relate to Phase 2. The field currently enjoys a net back of around US $50 per barrel after all costs, taxes and other charges.

Through 100% ownership of GPC, Otto becomes the Operator of the field, a crucial step in the development from an exploration to an integrated oil and gas company. The acquisition will also realize cost synergies as Otto consolidates the operating office of GPC in Manila with its current Perth and Manila offices.

Otto Acting Chief Executive Officer Matthew Allen said, "This acquisition represents an attractively priced, low-risk opportunity for Otto to increase its share of revenue from Galoc, as well as to better leverage the expertise within the group through assuming Operatorship. Galoc is a proven producing asset that we know well and that complements our high potential Philippines exploration portfolio. The revenue from Galoc continues to provide a valuable source of funds for reinvestment and this is set to grow as we move towards a Phase 2 expansion of the project. We look forward to working with our joint venture partners and the Philippine Department of Energy to advance the successful Galoc project under Otto's Operatorship."

Strong Current Production Performance

Recent performance at Galoc has been encouraging with current production at approximately 6,800 barrels per day. The field has delivered 23 offtakes to refinery customers to date with one additional cargo scheduled for delivery prior to the FPSO being taken out of the field in September.

Galoc has had an average operating uptime of 100% over the past four months, and now has a year-to-date 12-month rolling average uptime of 88%. The upgrade to the mooring and riser system is planned for the fourth quarter of 2011, and following installation is expected to improve FPSO operating uptime to in excess of 95%. The cost to Otto of the mooring and riser upgrade is modest at US $3.6 million based on a 33.0% interest in SC14C.

It is anticipated that final investment approval for a Phase 2 development of Galoc will be targeted for early 2012, subject to satisfactory results from a planned 3D seismic acquisition.

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Afren Increases Stake in Madagascar Block

- Afren Increases Stake in Madagascar Block

Monday, July 25, 2011
Afren plc

Afren announced that Government approvals have been received for Afren to assume operatorship and increase its interest in Block 1101, onshore Madagascar, to 90 percent. and a revised work program agreed.

Highlights

• Afren interest increased to 90 percent. from 40 percent. (reassignment of 50 percent. from Candax Energy to Afren)
• Afren assumes operatorship
• Work program of first two exploration phases now combined, with an additional 150 km of 2D seismic to be acquired
• Undertaken to drill one commitment exploration well; drilling now planned in 2012

Block overview

Block 1101 is located on the Eastern flank of the Ambilobe basin in Northern Madagascar. The Block encompasses an area of approximately 14,900 km2 onshore and lies adjacent to ExxonMobil's Ampasindava Block. The formation of the Ambilobe basin and the corresponding stratigraphic suites are closely related to the break-up of Gondwanaland and the later separation of eastern Gondwana. There are proven, large heavy oil accumulations in the Isalo formation in Central Madagascar (Bermolanga and Tsimiroro) which attest to the prospectivity of the region.

Some 220 km of 2D seismic was acquired over the block in 2008, identifying three major structures each close to existing wells with recorded oil shows. A working hydrocarbon system on the block is further evidenced by surface oil seeps.

Terms of reassignment and work program

Under the agreed terms of reassignment, Afren has increased its overall participation in Block 1101 to a 90 percent. operated interest through the reassignment of a 50 percent. interest previously held by Candax Energy, who remain partners on the block with a 10 percent. interest. Government approvals for the reassignment have been received and a revised work program agreed with OMNIS, the state oil and gas agency. The agreed work program has combined the first two exploration phases on the block and requires the drilling of one exploration well to a minimum depth of 1,600 meters. The partners have also agreed to acquire an additional 150 km of new 2D seismic. Under the revised ownership structure and work program, it is expected that drilling will now commence in 2012.

Osman Shahenshah, Chief Executive of Afren plc commented, "We see tremendous prospectivity in Madagascar and now, as operator, are keen to explore our high potential acreage. We are grateful to OMNIS and the Malagasy authorities for their endorsement and approval of this transaction and extended work program. We look forward to collaborating with our hosts and partner Candax in the ongoing exploration at Block 1101, and to further establishing Afren's long term commitment to this exciting exploration play."

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Nextraction Increases Position in Provost Viking Play

- Nextraction Increases Position in Provost Viking Play

Thursday, July 14, 2011
Nextraction Energy Corp.

Nextraction has substantially increased its leasehold position in the Provost Viking A oil pool by 92%, increasing its net acreage position from 1.625 to 3.125 sections (1040 acres to 2000 acres). Nextraction acquired one section at a 100% working interest (640 acres net to Nextraction) at a cost of $701,584, and one section at a 50% working interest (320 acres net to Nextraction) at a cost of $401,088. The two newly acquired sections are contiguous to each other and are one mile from the Company's existing 50/50 joint venture acreage, allowing for the potential to use existing infrastructure. The acquisition essentially doubles the Company's drilling inventory of horizontal locations up to 36 wells. Nextraction has identified 21 locations on 400 meter spacing whereby the Company could drill at least 4 wells owning 100% interest, and own a 50% interest in 17 locations (resulting in a further 8.5 net wells). In addition, another 15 locations may be drilled at a 50% interest (7.5 net wells), should down spacing be warranted.

The acreage is also prospective for light oil production from the Dina formation that is approximately 150 meters below the Viking formation. A historical well on the acreage produced 18 Mbbls of oil from the Dina formation.

The Company is also pleased to announce that it participated in the successful re-completion of a well on its existing acreage. The well had not been previously fracture stimulated, so the well was fractured using the same technique the Company plans to use on its first horizontal well. Prior to re-completion of the well in mid-June, it produced three barrels of oil per day and is now currently producing 29 barrels of light oil per day, a ten-fold increase. Payout is projected at three months.

The Company is encouraged by the results of the frac as it confirms the high productivity potential of the Company's acreage. The well has been producing for two years and is located directly between two wells that have cumulatively produced 520 Mbbls to date and continue to produce 20 bbls per day of oil. Reservoir pressure measured after completion was near original pressure, suggesting little depletion. The high production rates from the well are consistent with the high pressure and indicate good quality reservoir, as expected. The Company is currently drilling its first horizontal well in the pool offsetting these wells and plans to multi-stage fracture this first horizontal well in the Viking zone in the coming days. The Company also plans to drill a second horizontal well on this joint venture acreage in the third quarter of 2011.

Mark S. Dolar, President & CEO of Nextraction, commented, "We value the Crown leases acquired yesterday as a strategic asset to our Company's growth. We believe the acreage to be very prospective for a multi-well development program and will expand our ability to focus on developing the Viking formation for value added reserves. With our experience and expertise in developing the Viking sand by horizontal drilling and multi-stage fracturing, we see this project as an excellent way to add significant oil reserves as we move towards our goal of being 80% light oil weighted by the end of this year."

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Total Increases Stake in Tempa Rossa Field

- Total Increases Stake in Tempa Rossa Field

Tuesday, July 05, 2011
Total

Total announced the acquisition of Esso Italiana's interests respectively in the Gorgoglione concession (25% interest), which contains the Tempa Rossa field, and in two exploration licenses located in the same area (51.7% for each one). The acquisition increases Total's equity stake in the operated Tempa Rossa field to 75%. The transfer of interests is subject to the approval of Italian authorities.

The Tempa Rossa project, located in Basilicata region, is important for the economic development of this region. The calls for tender for the main development contracts are under way and Regional and Governmental approvals are expected in summer 2011. A Final Investment Decision on project implementation is planned towards end 2011 which would lead to start of production in 2015 with a plateau level of 50,000 barrels of oil per day.

This acquisition strengthens Total's position in the Exploration-Production sector in Italy and its commitment as a major player in the economic development of the Basilicata Region. The Total Group strives to reduce its environmental footprint as part of its commitment to sustainable development. Safety and environmental protection are core concerns for the Group wherever it operates.

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Atlas Increases Borrowing Base

- Atlas Increases Borrowing Base

Monday, June 27, 2011
Atlas Energy, L.P.

Atlas announced that its lending group on its senior secured credit facility has completed its borrowing base redetermination and has increased Atlas Energy's borrowing base from $125 million to $160 million. Atlas Energy currently has no amounts borrowed against its credit facility. Wells Fargo Securities, LLC led the lending group in the redetermination process and there were no other changes to the terms of the credit facility.

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Commodity Corner: Oil Increases on IEA View

- Commodity Corner: Oil Increases on IEA View

Thursday, June 16, 2011
Rigzone Staff
by Saaniya Bangee

Crude futures gained 14 cents Thursday on positive economic reports and raised forecasts by the International Energy Agency (IEA).

After fluctuating between $94.29 and $95.75, light, sweet oil rose by 0.2 percent to settle at $94.95 a barrel.

The IEA, during its medium-term report, urged OPEC to raise output levels. The IEA claimed global demand remains strong and increased its five-year global forecast by approximately 700,000 bpd.

Also pressuring oil prices was the modest increase in U.S. labor and housing markets. According to the Labor Department, initial unemployment claims fell by 16,000 for the week ended June 11. Meanwhile, construction on new homes rose 3.5 percent from the prior month.

Natural gas for July delivery plunged to a three-week low Thursday settling at $4.41 per thousand cubic feet. The 3.6 percent-drop came on weather forecasts indicating a decline in demand. The Department of Energy said U.S. gas inventories grew by 69 billion cubic feet, almost balanced with analysts' expectations.

The intraday range for natural gas was $4.408 to $4.595 Thursday.

Front-month gasoline ended the trading session at $2.95 a gallon, up 2.59 cents from the previous session. Prices traded between $2.93 and $2.99 a gallon Thursday.

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Americas Petrogas Increases Stake in Apache's Huacalera Block

- Americas Petrogas Increases Stake in Apache's Huacalera Block

Wednesday, June 15, 2011
Americas Petrogas Inc.

Americas Petrogas has completed the acquisition of Energicon S.A. as initially announced on June 3, 2011.

As a result of this acquisition, the Company now holds a 39% working interest in the Huacalera block, which contains Vaca Muerta shale source rock. The block is currently being drilled by the operator of the block, a subsidiary of Apache Corporation.

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MWCC Increases Water Depths for Capping Stack

- MWCC Increases Water Depths for Capping Stack

Tuesday, June 14, 2011
ExxonMobil Corp.

Marine Well Containment Company (MWCC) announced that its capping stack has met the requirements for containment operations in water depths up to 10,000 feet, which is an increase from the previous water depths of up to 8,000 feet.

"This increase in our capability demonstrates our commitment to providing a comprehensive deepwater well containment system for the U.S. Gulf of Mexico," said Chief Executive Officer Marty Massey. "Our goal is to continually advance deepwater well containment technology to keep pace with our member companies' needs."

The capping stack is the centerpiece of an interim response containment system and is designed to cap or contain the flow of hydrocarbons in a deepwater well control incident. It can handle pressures of up to 15,000 pounds per square inch.

The capping stack provides a dual barrier for containment through a blowout preventer ram and a containment cap. Through its side valves, the capping stack can also redirect the flow of fluid to surface vessels through flexible pipes and risers, if necessary. The capping stack is tested and maintained in a continuous state of readiness for mobilization and measures approximately 30 feet in height, 14 feet in width and weighs almost 100 tons.

A Shell permit application, which cited the MWCC interim system for drilling in 9,800 feet of water in the Tobago Field, met the requirements of the Bureau of Ocean Energy, Management, Regulation and Enforcement and was approved.

An expanded containment system is on track for delivery in 2012. In addition to operating in water depth up to 10,000 feet, the system will have the capacity to capture up to 100,000 barrels of fluid and 200 million cubic feet of gas per day.

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Chesapeake Energy Boosts Payout; Sees Regular Increases

- Chesapeake Energy Boosts Payout; Sees Regular Increases

Monday, June 13, 2011
Dow Jones Newswires

Chesapeake said Monday it raised its common-stock dividend by 17%, marking the natural-gas company's first increase since June 2008.

"It is our goal to be able to increase our common-stock dividend regularly in the years ahead," said Chief Executive Aubrey K. McClendon.

The company raised its quarterly dividend to 8.75 cents a share from 7.5 cents; the increased payout will cost the company an additional $32.9 million a year.

"From a value perspective, this announcement is negligible though it does paint a positive picture from an optical standpoint," analysts with Canaccord Genuity wrote in a note to clients.

Chesapeake Energy, the second-largest U.S. natural-gas producer after Exxon Mobil Corp. (XOM), joins a long list of companies that have increased payouts to shareholders in recent months using stockpiled cash. Last month, Chesapeake Energy reported that it swung to a first-quarter loss on steep derivatives losses and a 42% drop in revenue as energy prices declined, while production increased from a year ago.

On Friday, shareholders demonstrated dissatisfaction with the company's board and pay practices as about 22% of votes were withheld in McClendon's re-election as chairman, up from only 4% that opposed his election in 2008. In an advisory say-on-pay vote, only 58% said they approved of Chesapeake's executive-compensation plan.

Chesapeake spokesman Jim Gipson said Monday that the dividend hike had "been planned for many months" and wasn't made in response to Friday's shareholder votes.

Shares, which have risen 19% in the last year, recently traded down 77 cents, or 2.63%, at $28.47.

Copyright (c) 2011 Dow Jones & Company, Inc.

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Chevron Increases Quarterly Dividend by 8.3%

Chevron Increases Quarterly Dividend by 8.3%

Wednesday, April 27, 2011

Chevron Corp.

Chevron declared a quarterly dividend of seventy-eight cents ($0.78) per share, payable June 10, 2011, to holders of common stock as shown on the transfer records of the Corporation at the close of business on May 19, 2011. The amount represents an 8.3 percent increase in the company’s quarterly dividend.

Pacific Rubiales Increases Revolving Credit Facility

Pacific Rubiales Increases Revolving Credit Facility

Thursday, April 14, 2011
Pacific Rubiales Energy Corp.

Pacific Rubiales has closed the amendment (the "Amendment") to its existing US $250 million unsecured revolving credit facility (the "Revolving Credit Facility"). As a result of the great interest generated amongst the lending syndicate, the amount of the Revolving Credit Facility was increased from the US $250 million initially committed by the lenders in April 2010 to US $350 million. Bank of America Merrill Lynch acted as Global Coordinator and Sole Bookrunner.

The Amendment was limited to the same lenders under the Revolving Credit Facility and, in addition to increasing its amount of the facility from US $250 million to US $350 million, under the terms of the Amendment the Company extended the term of the Revolving Credit Facility to April 2013 and reduced the applicable commitment fees and the applicable margin.

To date, the Company has not drawn down any funds from the Revolving Credit Facility and the Company does not expect to require any proceeds from the Revolving Credit Facility to fund its 2011 capital expenditure budget. The Revolving Credit Facility will be utilized as needed to take advantage of opportunities in the Colombia E&P sector that may become available and to fulfill the Company's business strategy.

The applicable margin and commitment fees of the Revolving Credit Facility will continue to be determined in accordance with the rating assigned to the Company's senior debt securities by Standard & Poor's Ratings Group and Fitch Inc. Based on the Company's current rating and expected usage, the commitment fee will be reduced from 100 bps to 75 bps and the applicable margin from 325 bps to 250 bps over LIBOR.

Subject to customary acceleration events set forth in the credit agreement relating to the Revolving Credit Facility, or unless terminated earlier by the Company without penalty, repayment of outstanding principal on the Revolving Credit Facility will be made in full on April 26, 2013.

Centrica Increases Canadian Gas Assets with Wildcat Hills Acquisition

Centrica Increases Canadian Gas Assets with Wildcat Hills Acquisition

Friday, April 01, 2011
Centrica plc

Centrica announced that its North American subsidiary, Direct Energy, has acquired further natural gas assets located in the Wildcat Hills region of Alberta, from Shell Canada Energy for C$47m (£30m) in cash. The acquisition will give Direct Energy a 100% working interest in certain Wildcat Hills assets and gas processing facilities, which it has operated since October 2010.

It will provide Direct Energy with an additional 45 billion cubic feet equivalent (bcfe) of proven and probable natural gas reserves and an incremental 10 million cubic feet per day (mmcfe) of natural gas production. Following the transaction the company will be able to meet approximately 35% of its enlarged customer gas demand from its own resources and the transaction will lower overall production costs as no additional field or office staffing will be required.

The acquisition marks the latest stage in Direct Energy's strategy of creating a more integrated North American business, with leading positions in deregulated markets. In 2010, as well as acquiring an operated interest in the Wildcat Hills assets, the company established itself as a leading player in the North American home services market with the acquisition of Clockwork Home Services. In March 2011, Direct Energy agreed to buy the New York-based gas and power retailer Gateway Energy Services, adding another 275,000 customer accounts in the US Northeast.

Chris Weston, President and CEO of Direct Energy said, "We are very pleased to have acquired an enlarged interest in the Wildcat Hills region. Growing our upstream business is important in ensuring that we remain a stable, long-term partner to the millions of residential and business customers we serve across North America. We will continue to explore opportunities in both gas and power, to enhance the scale of the business and to support Direct Energy's expanding retail businesses."

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."