Roc will pay up to an agreed limit equivalent to US$4 million total net cost to ROC, including a farmin promote to BHP Billiton. If any additional well costs are incurred they will be shared proportionately. ROC will not be required to reimburse any pre-drill permit costs.

Once the farmin has been finalised, the WA-351-P Joint Venture will consist of BHP Billiton (operator and 55%), a subsidiary of Tap Oil Limited (25%) and ROC (20%).

The Jacala prospect is located in about 1100 metres of water roughly 200km west of Barrow Island and 100km north-west of the Enfield oil and gas field.

As defined by 2D seismic, Jacala is a large, simple, four-way dip closed structure covering more than 300 square kilometres with a vertical closure of more than 100 metres.

“The reservoir target is a sandstone sequence equivalent in age to the Barrow Group which is well established as a productive reservoir elsewhere in the basin,” said Roc CEO John Doran.

“The potential reservoir is expected to be encountered at approximately 2200 metres sub-sea.

“ROC has no illusion about the Jacala Prospect – it is high risk and high reward. If it contains oil it could have a very big impact on the company.”

Doran said the farmin was consistent with Roc’s strategy of serving up to shareholders several ‘big hit’ drilling opportunities each year.

“Jacala-1 will take its place alongside other wells that ROC has lined up as part of a busy exploration drilling programme for the latter part of 2005,” he said.

“Apart from Jacala-1, this program also includes key wells in deep water offshore Equatorial Guinea and Mauritania, shallow water offshore China, onshore UK and onshore New Zealand.”