Ann: ROC Announces Equity Capital Raising , page-12

Extract from today's Presentation:

Balanced and diversified production base with focus on Australiaand China
•Low average operating cost ~ US$15/boe
•Net production of ~4.0 mmboe*
•2009 business plans fully funded with operating cash flow of >US$100m#at US$50 / bbl brentoil price

Going forward @ US$70 per barrel, ROC would probably be generating operating cash flow around US$150M

Capital Raising of 88M shares or 15%:

Shares o/s 588M @ 90 cents = MC of A$530M

Just say if 15% reduction the share price = 78 cents:

After Raising 676M @ 78 cents = MC of A$530. The same as before. However, company will have an extra A$68M cash tghan before. Consequently, you would think ROC's share price would be higher than 78cents but no guarantee.

Thev 15% dilution will really mean little to shareholders. Would rather see ROC free up to persue growth opportunities rather than be restricted by cash shortages. I am sure the banks will be less concerned providing project loans for ROC's new projects if they see that its existing producing assets are unencumbered.

There is significant upside in ROC share price from expected drilling in 2010 in the Carnavon Basin. I expect that ROC will need a budget of more than $10M to persue some of these projects which I expect are more than likely to compensate for a 15% dilution.

Regards

SP