Pioneer will acquire a 20% interest from Roc, which will retain a 15% interest in the Block, and will fund Roc’s obligation to pay 70% of the cost of the Bravo-1 exploration well. Additionally Pioneer will provide a 15% free carry through the second well in Block H, which is currently expected to be drilled during 2005, and provide a further US$2.5 million work program carry in the event that a discovery is approved for development.

The 70% carry through Bravo-1 reflects the final earning phase of Roc's own farmin to Block H with the company remaining as Technical Manager of Block H through the drilling of the well.

“Pioneer's deep water experience in the Gulf of Mexico and its proven exploration and development track record in other parts of Africa, introduces a new and exciting dimension to the search for oil in Block H,” said Roc CEO John Doran.

“Regardless of the results of Bravo-1, the petroleum potential of Block H cannot be adequately tested by one well. The farmout to Pioneer recognises this fact. The need to ensure that at least two wells are drilled in the Block during 2004-05 was one of Roc's main motivations for farming out.

“If Bravo-1 is an oil discovery the potential of the numerous other prospects and leads in the immediately surrounding area, will be substantially upgraded and, through the drilling of a single wildcat well, Roc's asset base will have been considerably enhanced,” added Doran.

“If Bravo-1 does not live up to its potential it will still represent a regionally important data point which will help guide the decision as to where the second well, which is currently expected to be drilled in 2005, should be located."

The Bravo-1 exploration wildcat well is located in 1,509 metres of water, about 180 km southeast of Malabo, the capital of Equatorial Guinea, and approximately 75 km north of the Amerada Hess-operated oil fields in Block G.

Bravo-1 will target Tertiary channel sands within a potential stratigraphic trap identified by high resolution 3D seismic. The Bravo Prospect is estimated to have a mean recoverable reserve potential of 116 million barrels of oil.

The discovery of oil in the Tertiary at Bravo-1 would open up a new play in the area and encourage the drilling of other, broadly comparable, nearby prospects and leads which have already been identified from the 3D seismic.

Subsequent to the Pioneer farmin the interests in the Block H Joint Venture will include entities from the United States, Australia, Nigeria and South Africa with The Atlas Group holding 45% (operator), Pioneer 20%, Sasol 20% and ROC (Technical Manager) 15%.