Presentation to THE GOOD OIL CONFERENCE Perth, September 2007 - - PowerPoint PPT Presentation

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Roc Oil Company Limited

Presentation to THE GOOD OIL CONFERENCE Perth, September 2007

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Important Information The information in this presentation is an overview and does not contain all information necessary for investment decisions. In making investment decisions investors should rely on their own examination of ROC and consult with their own legal, tax, business and/or financial advisers in connection with any acquisition of securities. The information contain in this presentation has been prepared in good faith by ROC. However, no representation or warranty expressed or implied is made as to the accuracy, correctness, completeness or adequacy of any statements, estimates, opinions or other information contained in this presentation. To the maximum extent permitted by law, ROC, its directors, officers, employees and agents disclaim liability for any loss or damage which may be suffered by any person through the use or reliance on anything contained in or omitted from this presentation. Certain information in this presentation refers to the intentions of ROC, but these are not but these are intended to be forecasts, forward looking statements or statements about future matters for the purposes of the Corporations Act or any other applicable law. The occurrence

• f events in the future are subject to risks, uncertainties and other factors that may cause ROC's

actual results, performance or achievements to differ from those referred to in this presentation. Accordingly, ROC, its directors, officers, employees and agents do not give any assurance or guarantee that the occurrence of the events referred to in this presentation will actually occur as contemplated.

Disclaimer

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UK 1 producing field 1 field in development CHINA 2 producing fields 1 field in development & 1 field in pre-development AFRICA 1 producing field & several undeveloped fields. New discovery in Angola Current exploration drilling in Angola AUSTRALIA 1 producing field 2 potential commercial discoveries

ROC’s Growing Global Footprint

• ROC has built its business through a combination of:
• Organic exploration & development as well as acquisitions;

including US$260 million purchase of Apache’s China assets

• Strong financial and technical discipline
• 200 experienced core technical, financial and operational staff
• Experienced operator with a proven ability to explore & produce

in challenging environments

• Company transforming potential with onshore Angola prospects

& leads

• 5 discoveries from 8 exploration wells in 3 continents since 2Q 2006.
• Strong & sustainable cash flows from producing assets

Business Overview Global Asset Base: Highlights Growing and Diverse Production Profile 2P Reserves 30 June 2007

ROC’s remaining 2P Reserves as at 30 June 2007 totals 25.7 MMBOE.

Note: Reserves are based on reported reserves as at 31 December 2006 less 1H 07 production.

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• Total 1.6 MMBOE Oil & Gas production achieved / 8,686 BOEPD
• Enoch Oil & Gas Field first oil on 31 May
• Cliff Head Oil Field achieved production target of 3.0 MMBBLS during first year
• f production

PRODUCTION

• Work commenced on the Zhao Dong C & D Oil Field Incremental Development

& the C4 Oil Field Development Projects

• Zhao Dong Development drilling commenced during April
• Enoch Oil & Gas Field Development completed & commissioned
• Blane Oil Field Development on track for first oil during 3Q 2007

DEVELOPMENT

• 2 potentially commercial discoveries from 3 wells in the Perth Basin
• Commencement of onshore Angolan drilling campaign with the Massambala discovery
• Acquisition of Block Belo Profond, Mozambique Channel, Madagascar expanding

potential high-impact exploration

• Preparation for 200 sq km 3D seismic survey, onshore Angola

EXPLORATION & APPRAISAL

• Strong safety performance with no LTIs during 1H 2007
• During 1H07, ROC reported no major environmental incidents

HSE

1H 2007 Operational Highlights

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Production – Net to ROC

• Production 1.57 MMBOE (8,686 BOEPD) is down 6%

from 2H 06 (1.68 MMBOE)

• Enoch Oil & Gas Field commenced production on

31 May 2007, totalling 0.3 MMBOE gross production (ROC 35,714 BOE).

• Zhao Dong gross production was 3.6 MMBBL.

(ROC 881,411 BBL) at an average of 19,900 BOPD.

• Cliff Head gross production was 1.5 MMBBL

(ROC 554,591 BBL) at an average of 8,171 BOPD.

• Chinguetti gross production was 3.0 MMBBL

(ROC 99,221 BBL) at an average of 16,867 BOPD.

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ROC’s Net Production

1Q 2006 to 3Q 2007 & 4Q 2008 Forecast

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AUSTRALIA Generally 37.5% CHINA 24.5% & 40% (3) Operated / Managed Non-operated

(1) Excludes onshore UK (2) Post unitisation (3) Pre 51% Government Back-In for Block 22/12 (4) 15% Free carried through next exploration well (5) 75% contributing interest for exploration (6) 75% working interest

UK (1) NORTH SEA 12% (2) and 12.5% (2)

Assets Overview

MAURITANIA 2% - 5% EQUATORIAL GUINEA 18.75% (4) ANGOLA 60% (5) MADAGASCAR 75% (6)

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Cliff Head Oil Field Development – offshore Perth Basin (37.5% & Operator)

Asset Update, offshore Perth Basin, Western Australia

• Continue good production performance
• Maintain LTI-free record
• Monitor and manage trucking issues
• Continue to work with local communities

and governments

2H 2007 FOCUS

• Gross Production: 1.5 MMBBL /

8,171 BOPD

• Working Interest Production: 554,591 BBL /

3,064 BOPD

• Achieved the forecast 3.0 MMBBL in first year
• f production
• LTI: Nil

1H 2007 RESULTS

Rig & Platform 11km offshore Rig & Platform 11km offshore

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Total Cliff Head Oil Production (BOPD)

1 May 2006 - 1 September 2007

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Cliff Head Coil Tubing Workovers

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Offshore Northern Perth Basin

Three discoveries

Dunsborough

MAINLY OIL

Gross Column Net Pay Area Vertical Relief Tilted Horst Block Filled to spill Estimated Oil In Place 25m 17m 2.9 sq km 90m 20 – 40 MMBBL

Frankland

GAS

Gross Column Net Pay Area Vertical Relief Faulted Anticline Filled to spill Estimated Gas in Place 35m 30m 4.7 sq km 130m 60 – 90 BCF

+

• +

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ROC’s Interests in China - Offshore

Zhao Dong Block, Bohai Bay; & Block 22/12, Beibu Gulf

ROC 40%* & Operator ROC 24.5% & Operator

* Subject to up to 51% Government

participation in developments

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Zhao Dong Block (ROC 24.5% & Operator)

Asset Update, Bohai Bay, offshore China

• Drill 9 Production and 6 Water Injection wells in 2007
• Complete engineering for planned expansion of

the existing C & D Field production facilities and commence construction activities

• Progress C4 development

2H 2007 FOCUS

• Gross Production: 3.6 MMBBL /

19,900 BOPD

• Working Interest Production: 881,411 BBL /

4,870 BOPD

• Work commenced on the C & D Fields

Incremental Development Plan and the C4 Development

• Drilling activities commenced in April 2007

1H 2007 RESULTS

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Block 22/12 – Wei 6-12-South & Wei 6-12 Pre-Development

(ROC 40%* & Operator) - Asset Update, Beibu Gulf Oil Discoveries, offshore China

• Progress & finalise development

engineering studies

• Move towards Final Investment Decision
• Finalise exploration drilling rig contract
• 4Q planned commencement of a 4 well

exploration programme

2H 2007 FOCUS

• Completed feasibility study & initial reserves

assessment on Wei 6-12S & Wei 6-12

• Mapping of Prospects & Leads for

exploration drilling

1H 2007 PROGRESS

* Subject to up to 51% Government participation in developments

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Enoch Oil & Gas Field (ROC 12%)

Asset Update, UK North Sea

• Completed construction and commissioning
• f facilities, with first production 31 May 2007.
• Gross Production: 300,000 BOE
• Working Interest Production: 35,714 BOE

1H 2007 RESULTS

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Blane Oil Field (ROC 12.5%)

Asset Update – North Sea

• Complete hook-up and commissioning work
• n the Ula platform
• First oil planned for 3Q 07
• Targeting initial production of 17,000 BOEPD

(2,125 BOEPD Net to ROC)

• Drill water injection well

2H 2007 FOCUS

• Ula topside modifications and tie-in of all

pipelines and flow lines

1H 2007 PROGRESS

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Chinguetti Oil Field Field (ROC 3.25%)

Asset Update – offshore Mauritania

• Selection of Chinguetti Phase 2B infill development well locations
• Processing and interpreting 4D seismic
• Evaluation of Tiof 3D seismic data

2H 2007 FOCUS

• Gross Production: 3.0 MMBBL /

16,867 BOPD

• Working Interest Production: 99,221 BBL /

548 BOPD

• CH-18 drilled and completed

1H 2007 RESULTS

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Onshore Angola

Cabinda South Block (ROC 60% & Operator)

WHAT ROC HAS SHOWN FOR SEVERAL YEARS

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Onshore Angola

Cabinda South Block (ROC 60% & Operator)

WHAT ROC SHOWS NOW

MASSAMBALA DISCOVERY

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• Shallow oil accumulation around 400m.
• Identified in exploration well
• Logged and cored in side track
• Main zone of interest is a 16m gross oil

column (15m net) in the Malembo formation

• Potential oil in place approx 170 MMBO
• 3D seismic mapped as 4 way dip closure

around 26 sq km

• Further evaluation and analysis of data
• Planned appraisal later in 2007 / 1H 2008

Massambala Oil Discovery, onshore Angola

Cabinda South Block, ROC 60% and Operator

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Original M-1 Location

Play Concepts: Cabinda South Block

Massambala

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Massambala-1

Final M-1 Location moved to test secondary target

Play Concepts: Cabinda South Block

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API Gravities of Hydrocarbons

API gravity, degrees

Liquid hydrocarbon API gravities range from 4 for tar-rich bitumen to 70 for condensates.

• Condensates
• Olive oil
• Volatile oil
• Vegetable oil
• Black oil
• Mayonnaise
• Heavy oil
• Water
• Bitumen
• Ultraheavy oils

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Heavy oil can have viscosity similar to that

• f honey.

Viscosities of Fluids

• Benzene
• Water
• Milk
• Cream
• Vegetable Oil
• Tomato Juice
• Engine Oil
• Honey
• Glue
• Mayonnaise
• Ketchup
• Peanut Butter
• Bitumen
• Chocolate

Viscosity, centipoise

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Streamflood Recoveries from Heavy Oil Fields

Source: Petroleum Engineers Handbook 1987

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“In 1899, oil was first discovered in the Kern River Field … By 1965, oil production had dropped significantly. We began experimenting with a technology called steam flooding, … Today, production is greater than 80,000 barrels a day. Eventually, we'll recover up to 80 percent of the

• il in the Kern River field, compared to an average industry

recovery rate of 35 percent”.

Dave O’Reilly, CEO Chevron 6 June 2007

Heavy Oil Recovery Factors can be high

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Post Salt Pre Salt

Massambala Soja (formerly Caju) Cevada

33 - 180 54 - 157 56 - 264

Milho

33 - 129 78 - 188 90 - 528

Trigo Lead 113C

Total

344 - 1446

Directional well to be drilled after Soja and or Trigo. Directional well to be drilled after Soja. Subject to 200 sq km 3D seismic being acquired.

Oil In-Place Summary: Cabinda South Block

Asset Review, Onshore Angola Exploration

Big Upside. Will be the second well for the ROC Explorer. Scheduled to be the first well drilled by the Simmons rig starting in mid-August.

Play Prospect/Lead Comments Oil In-Place * P50-P10

The P50 – P10 numbers quoted relate to the primary target prior to

• drilling. The Post-drill situation is that an estimated 170 MMBO of

Oil-In-Place has been discovered in a secondary shallow target.

A high-impact exploration program with significant upside potential

* In-place volumes, not recoverable quantities

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MADAGASCAR - East Africa Mozambique Channel Play

Asset Review - Exploration

• Newly recognised, high risk, deep

water petroleum play.

• Large area (13,770 sq km).
• Potential high-impact upside.
• Meaningful participation level.
• Operatorship.
• Realistic and manageable

commitment.

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Location of Exploration Permits WA-381-P & WA-382-P

Vlaming Sub-Basin, offshore Western Australia Farm-in Agreement for WA-381-P & WA-382-P announced today:

• 20% Equity & Operatorship

for initial A$2 million pre seismic work

• Further options to acquire up

to 80% equity in total for seismic acquisition and exploration well

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• High potential portfolio covering approximately 90,000 gross sq km across four main regions: Australia, China,

Africa and UK.

• Continued focus on a “conveyor belt” approach to generating a long term E & P asset base.
• Base production outlook: 10,000 – 12,000 BOPD net production through 2008.
• Targeting and progressing substantial appraisal, development & production upside in 2007/08; Angola & China.
• Realise substantial exploration potential in existing areas to enhance value/share price.
• Pursue new growth opportunities which are complementary to ROC’s existing assets and experience.

A Balanced & Diversified Portfolio

Forward Glance

• Zhao Dong

Extended Reach

• Wei 12-8 East
• Tiof
• Banda
• Tevét
• Massambala
• Frankland
• Dunsborough
• Wei 6-12 South
• Wei 6-12
• Wei 12-8 West
• Blane
• Zhao Dong C4
• Zhao Dong C & D

expansion

• Cliff Head
• Chinguetti
• Zhao Dong C & D Fields
• Enoch
• Angola
• China
• Mauritania
• Australia
• Equatorial Guinea
• Madagascar

Exploration

Including at least 9 wells planned for 2H 2007 in up to 5 countries

Appraisal

8 fields/areas in 4 countries

Pre-development

3 fields in China

Development

4 fields in 2 countries

Production

ca 10,000 – 12,000 BOPD Net Production from 3Q 2007

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Beibu Gulf DISCOVERY DATE

ROC’s Appraisal / Pre-Development Projects

China ROC FIELD BASIN COUNTRY OPERATOR Wei6-1 Complex May 2006 Offshore Perth Basin Australia ROC Frankland-1 April 2007 Offshore Perth Basin Australia ROC Dunsborough-1 May 2007 Onshore Cabinda Angola ROC Massambala-1 August 2007

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ROC’s 2007 Drilling Forecast Program

An Aggressive Schedule

Up to 9 Exploration wells in 2H 2007 with high-impact potential

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2H 2007 Outlook

• Production for 2007 targeted at an average ca 10,000 BOPD
• Zhao Dong development and drilling
• Blane Oil Field Development to deliver first oil by end-3Q 07
• Up to 8 potential high-impact exploration wells scheduled for 2H 07 / early 2008
• Appraisal of Massambala discovery
• Beibu Gulf discoveries progressed towards development
• Further evaluation of Perth Basin discoveries and exploration potential
• Continuing proactive focus on generating new opportunities for long-term growth

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www.rocoil.com.au