ROC’s oil and gas is overwhelmingly sourced from its onshore UK fields. Oil production from Keddington was lost for 38 days due to mechanical problems while a one-week scheduled maintenance shutdown at the Theddlethorpe Gas Terminal, where Saltfleetby gas is processed for sale, also contributed to the fall in production.

Australian oil production for the quarter was 419 BBL from the Jingemia Oil Field.

U.K. offshore development expenditure for the quarter was A$0.1 million.

ROC is undertaking several major exploration and development projects in various parts of the world.

In Mauritania, the Tevet-1 exploration well encountered a significant oil and gas accumulation. ROC claimed this was likely to be regarded as a potential candidate for development via a sub-sea tie back to the Chinguetti Field.

An existing Mauritanian oil field was successfully appraised with the Tiof-3 appraisal well intersecting a 134 million gross oil column 4.2km west of the Tiof-1 discovery well and 3.6km east of the first Tiof appraisal well.

Offshore oilfields around the world moved towards development or production in the third quarter. Development of the Chinguetti oil and gas field in Mauritania continued and the Wei 12-8 field in China and the Blane field in the UK North Sea are undergoing pre-development studies.

Plans for drilling the wildcat Errington-1 well in onshore UK came to fruition during the quarter ahead of a scheduled November 2004 commencement date. A two-vessel drilling program commenced in offshore Mauritania is aimed at drilling 21 wells in late 2004 and early 2005.

ROC has also moved ahead in its Perth Basin exploration and development programs.

At the offshore Cliff Head oil field, pre-development work progressed on front end engineering design (FEED), field development plan, marketing and environmental studies, geological modelling and reservoir engineering modelling.

An onshore pipeline licence application and supplement to the Public Environmental Review both submitted in July 2004. The state’s Environmental Protection Authority gave the development approval last week.

Based on the FEED work completed to date and higher costs now being seen in the upstream fabrication and construction sector, ROC now anticipates final project costs may be about 20% higher than the $156 million referenced in the company’s prospectus, issued in April 2004. Any rise in cost is expected to be more than offset by significantly higher oil prices.

The joint venture now intends to bring forward some elements of the development drilling program that had been planned for late 2005. Planning commenced for the drilling of two appraisal/early development wells at Cliff Head as part of a Perth Basin drilling program will now include up to four exploration wells. The wells are currently scheduled for drilling in February 2005.

The Cliff Head-5 well will be drilled at a location in the south-eastern part of the field as a vertical ‘pathfinder’ appraisal well. The well is designed to move reserves from the probable to the proven category, and to provide reservoir data to optimise the planning for reservoir development. Because it is a pilot well it will not be completed for production regardless of results.

The Cliff Head-6 well will be drilled as an appraisal/early development well in the main horst and is expected to be suspended as a future oil producer and completed for production in late 2005. Bringing these wells forward will not affect anticipated first oil production, which is still scheduled for the end of 2005. ROC expects the final investment decision will formally be taken at end January 2005.

In the onshore Perth Basin, Jingemia-4 was connected to the Jingemia production facility in late July 2004. The field is subject to extended production testing and ROC is waiting on long-term production facilities to be in place. Planning for two development/appraisal wells commenced and the Western Australian Department of Industry and Resources approved a draft field development plan during the third quarter.

Australian exploration expenditure for the quarter was A$1.5 million, all of which related to ROC’s activities in the Perth Basin, Western Australia. UK exploration expenditure for the quarter totalled A$1.2 million, most of which was spent on licence fee expenses and preparation for the remainder of the 2004 drilling campaign. Total quarterly expenditure on West African projects totalled A$2.2 million, mainly associated with ongoing activities in Mauritania ($2.1 million).