espadon has the potential to contain around 100 to

INTERVIEW:Australia's Roc Disappointed At Sotto Dry Well


By Stephen Bell
Of DOW JONES NEWSWIRES

PERTH (Dow Jones)--Australia's Roc Oil Ltd. (ROC.AU) said Tuesday it is disappointed at the latest dry oil well in its offshore Mauritania exploration program led by operator Woodside Petroleum Ltd. (WPL.AU).

However, Roc Managing Director John Doran told Dow Jones Newswires that the offshore Sotto-1 well was always regarded as a risky prospect.

"Because it was seen as a high-risk well, I suppose that tempers any disappointment," Doran said in an interview, adding that Sotto is the first prospect to be drilled in a multi-well program.

Woodside said that data acquired to date suggest that Sotto-1 "has not encountered any significant hydrocarbons."

The comments confirmed an earlier statement by Roc that caused share prices in the Mauritania joint venture partners to slump.

In mid-afternoon trade around 0417 GMT, Woodside shares were down 1.2%, Roc was off 2.3% and Hardman Resources Ltd. (HDR.AU) down 2.5%.

Analysts had previously estimated the target size of Sotto, around 42 kilometers south of the US$625 million Chinguetti oil development, at 150 million to 250 million barrels of oil.

"It is unfortunate, but it was a pretty high-risk well," said UBS energy analyst Gordon Ramsay.

Ramsay remains comfortable about the prospects for the next well at Espadon, regarded as a more "conventional" prospect that is close to the Tiof discovery.

Espadon has the potential to contain around 100 million barrels of oil, Ramsay added.

Roc said that UBS' estimate for Espadon is "reasonable".

"I'd imagine that it would be something between zero and 200 (million barrels)," Doran said.

"If it comes in as predicted, then obviously we'd expect it to be economically viable," he said.

"But it is another high-risk well," he added.

Woodside said the Stena Tay rig will move to Espadon after Sotto-1 is plugged and abandoned.

A typical exploration well offshore Mauritania takes between 10 and 20 days to complete, Doran said.

Woodside is operator and owns around 53.8% of Sotto-1. The other participants are Hardman with 24.3%, U.K.-based BG Group PLC (BRG) with around 13.1%, the Premier (PMO.LN) group of companies with 4.6% and Roc with 4.2%.

The partners, meanwhile, have approved plans for a further two wells on top of the previously announced Sotto, Espadon and Colin wells.

The Labeidna exploration target will be drilled, along with a well to "both appraise the Tevet discovery and target a deeper exploration prospect" beneath the Tevet oil reservoir, Hardman said.

Woodside's Chinguetti development is due to begin production in February, while the Tiof field may be declared commercial before the end of the year.