In a statement yesterday, Roc said the JV and Chinese Government approvals relate to the drilling of over 120 development wells between now and 2011, as well as facility expansion and installation.

“The approvals set the scene for a very active and productive five-year multi-field development growth phase; well beyond the predictive horizon which most Australian independents normally contemplate,” Roc managing director John Doran said.

“When Roc agreed to acquire its interest in the Zhao Dong Block in mid-2006, it said that the rationale was twofold: access to the proved and probable reserves and realisation of the upside potential.

“The scale of the planned activities and the magnitude of the related expenditures announced today, mean that both goals will be well and truly addressed during the next five years.”

In addition, Roc said production constraints in effect since last October have now been lifted, allowing output to increase back up to around 25,000 barrels of oil per day, or 9 million barrels for the current calendar year. This compares with 8.7MMbbl (23,800bopd) in 2006.

Roc, which holds a 24.5% stake in the Zhao Dong Block, said about $373 million would be spent over the next five years on an incremental development plan (IDP) for the C and D oil fields.

This includes the installation of a second drilling platform and second fluid processing and storage facility, as well as drilling 100 wells.

Fifteen of those wells will be drilled under the $169 million budget for 2007, while at least 35 wells will be drilled into the extended reach area (ERA) drilling program in the northeast part of the field containing a “significant” part of the block’s possible reserves, according to Roc.

A total of $150 million has also been earmarked for the C4 oil field development, in which Roc holds an 11.575% operated unitised interest.

About $88 million of this will be spent drilling 24 wells, comprising 15 oil producers and nine water injectors from two conductor pods. A third separate pod will be installed to serve as a pipeline terminal to be tied back to the existing Zhao Dong platforms via a 4.5km pipeline.

First oil from the C4/ERA is planned for the end of 2008.

Roc said it has entered a pre-identified rig contract to allow C4 development drilling to start in mid-2008 and to continue until 2011.

Roc reports record 2006 production, revenue

In a separate statement this morning, Roc announced that in 2006 it produced 2 million barrels of oil, compared with 13,635bbls in 2005, thanks to start-up of Cliff Head, Chinguetti and production from the Zhao Dong C and D oil fields.

As a result, the company also achieved record oil sales revenue of $151.5 million, a big jump on the $900,000 reported in 2005.

Trading profit was also up to $37.9 million from $300,000. But once a $68.7 million exploration bill was taken into account, Roc actually achieved a net loss after tax of $59.6 million.

This compares with a profit gain of $45.6 million in 2005, which was bolstered by an $81.3 million profit following the sale of the Saltfleetby gas field in the United Kingdom.

“In 2006, Roc delivered on some of the rhetoric,” managing director John Doran said.

“The results defy statistical comparison with the previous year.”

Looking ahead, Doran said the challenge would be to “keep adding value through a combination of patient field development, aggressive exploration, and in special circumstances, the opportunistic acquisition of assets within our core region.”

“Given the nature of Roc’s portfolio there is every reason to believe that the challenge would be met,” he said.

At the end of 2006, Roc was in debt $173.8 million, as a result of the acquisition of the Zhao Dong Block, while cash in the bank was $60.6 million.