ROC 1H Profit Slips 28 Pct

ROC 1H Profit Slips 28 Pct

Roc Oil Company Limited (ROC), an Australia-based independent upstream oil and gas companiy, today announced its net profit for the first half of 2013 was $20.5 million, a 28% drop when compared with $28.6 achieved in the same period od 2012.

Commenting on the first half results, ROC’s Chief Executive Office  Alan Linn, said: “ROC is continuing to deliver very positive financial results for our shareholders, and I am pleased to report the business has generated an NPAT of US$20.5 million from sales revenue of US$114.1 million for the six months to 30 June 2013.

The Company balance sheet has significant capacity to fund our regional value growth initiatives, with net cash of US$58.1 million and a debt facility of US$76.3 million which remains undrawn as of 30 June. Oil production for the half year was 6,478 BOEPD, delivered primarily from our Zhao Dong oil field and, for the first time, trial production from Beibu Gulf, which commenced in late March. ROC’s 2013 production guidance is maintained at 6,500 to 7,500 BOPD.

The final phase of development drilling in the Beibu Gulf development on the WZ12-8 West field has now been successfully completed and all wells are available for production, and expected to ramp up to a plateau of ~15,000 BOPD (gross) by the end of 3Q13. The project has been completed within budget and includes incremental reserve additions from the successful 2012 near field exploration campaign.

We continue to focus upon growing the value of our portfolio within South East Asia, China and Australia. In Malaysia, work on the Balai Cluster RSC by BC Petroleum (BCP) is progressing with Extended Well Tests (EWT) through the Early Production Vessel expected to commence during 3Q13. Results from the EWT are expected during 4Q13 and BCP will work to finalise the Final Investment Decision by the end of the 2013. We continue pursuing value growth opportunities in Malaysia, including new PSC opportunities.

Seismic acquisition is underway across the 09/05 exploration licence in the Bohai Bay, off shore China. The results will be used to high grade the exploration prospects within the licence and we expect to be drilling the first exploration well within the 09/05 licence in 2014. Additionally, a farmdown of our interest is expected to complete during 2H13.

ROC recently prequalified for the Myanmar onshore and offshore licence rounds. We are encouraged by the initial data reviews and anticipate bidding in the licence rounds, targeting a combination of field redevelopment and exploration licences.”

August 28, 2013