ROC-led JV moves toward Beibu Gulf development

Offshore staff

SYDNEY -- A consortium of Australian companies led by Roc Oil Co. Ltd. has moved toward development of its oil discoveries offshore China.

Roc subsidiary Roc Oil (China) Co., operator of the block 22/12 joint venture, has completed an Appraisal Report for the Wei 6-12 South and Wei 6-12 oilfields in the Beibu Gulf, offshore China. The report has been submitted to the Chinese government. The JV hopes to move the fields toward commercial development.

Based upon the oil-in-place figures in the report and model-generated recovery factors, recoverable estimated from the two fields are placed at 19-27 MMbbl of oil. The report does not address an additional 10 MMbbl that likely will likely re be recoverable in the undrilled Sliver and Footwall prospects, which are adjacent to the Wei 6-12 South Field.

The formal front end engineering and design (FEED) phase of the project is expected to begin in late 1Q 2007, and a final investment decision is expected in the second half of the year. This schedule could lead to first oil production by 2009.

The JV already has already sanctioned work that normally would be conducted as part of a formal FEED process.

1/30/2007