The company has four fields heading towards production in 2006, including the high-profile Chinguetti and Cliff Head oil fields.
Just before the quarter’s end the Blane and Enoch fields in the North Sea also moved into development mode with first oil targeted for the fourth quarter of next year.
Roc also made moves towards securing development of its China play, and carried out a major seismic survey in Angola, signalling a return to onshore exploration activities in that country after a hiatus of more than 30 years.
The company also expects to receive $2.5 million from the Ardmore project it is part of in the North Sea after an administrative receiver was appointed to its erstwhile partner Acorn North Sea Limited. According to its quarterly report, the $2.5 million represents about 25% of Roc’s investment in the project. Financing of the redevelopment of the Ardmore field has been terminated.
In addition, Roc boosted sales revenue from its producing onshore oil operations in the UK (Keddington) and Australia (Jingemia) by 89% on the March 2005 quarter to $267,000.
That was thanks largely to higher oil prices and increased Keddington oil production.
Roc also found favour with the market during July with its shares reaching a record close of $2.30.
At Cliff Head, off the Western Australian coast, things are going smoothly four months after project sanction.
About 75% of the $227 million budget for the project has been committed and 40% of the non-drilling work has been done. So far the development has remained on-time and on budget.
Off West Africa, all 12 development wells have been drilled in the deep water Chinguetti Oil Field development. The project has a $920 million budget and is moving towards production due by mid 2006.
The $391 million Blane oil field has received UK and Norwegian government approvals and development is now underway, while the $178 million Enoch oil and gas field received project sanction after receiving its UK and Norwegian government go-aheads.
On the production front Roc managed to increase its Keddington output by fixing a downhole mechanical problem that blighted the previous month’s performance.
However, Jingemia’s production fell at Jingemia due to a water break through.
In his report Roc CEO John Doran says the break through had been anticipated and will be mitigated when artificial lift facilities are installed.
Roc also embarked on what could be a “company-changing” exploration by taking a 20% stake in the BHP Billiton-operated Jacala Prospect. That prospect is large but also considered to be very high risk.
Off Africa, the Mauritanian joint venture agreed to the locations of the next three exploration wells. Drilling activity there is expected to start in the third quarter.
Fallout from Roc’s Ardmore field involvement is expected to be limited because it only had an unexercised option and, therefore, no ongoing financial obligation.
The company put the receivers into Acorn to preserve the entitlements of Roc’s UK subsidiary as lender with first ranking security.
According to its announcement in June, Roc’s Acorn action was triggered by its concerns over the future of Ardmore field operator Tuscan Energy (Scotland) and the viability of the project.
Roc has also moved into China and is negotiating field development of Block 22/12 with giant oil company CNOOC.
