share placement

So this explains the sell down..

19 January 2006
ROC OIL COMPANY LIMITED ("ROC")
STOCK EXCHANGE RELEASE
ROC SHARE PLACEMENT TO RAIISE A$76 MIILLIION //GBP 32 MIILLIION
FOR EXPLORATIION IIN ANGOLA
ROC is pleased to advise it intends to place 28 million fully paid ordinary shares (14.9% of the
Company’s current issued share capital) at a price of A$2.71(1) / £1.15 per share to raise
A$75.9 million(1) / £32.2 million, before expenses. After the placement, the issued capital of the
Company will be 215.9 million shares of which approximately 20%-25% is expected to be held by
UK based institutional investors.
The placement price represents a 1.5% discount to the volume weighted average share price for the
first 12 trading days of January and is equivalent to the volume weighted average price of the shares
traded in the last month.
All the shares will be placed with institutional investors in London through a process managed by
ROC’s nominated adviser and broker ('NOMAD'), Oriel Securities Limited. London-based Equity
Development acted in a support capacity.
Trading of the new shares on both the UK Alternative Investment Market (‘AIM’) and the Australian
Stock Exchange (‘ASX’) is expected to commence on Wednesday 25 January. From the date of
issue the new shares will rank equally with existing fully paid ordinary shares. Because the new
shares represent less than 15% of the Company’s issued capital, shareholder approval is not
required.
The primary purpose of the placement is to fund the recently announced acceleration of ROC’s
exploration programme in the Cabinda South Block, onshore Angola. ROC has a 60% Working
Interest (75% Contributing Interest) in this area and anticipates a net expenditure of at least
US$34 million / £20 million in Angola during 2006. Most of the expenditure will relate to the acquisition
of 250 sq km of 3D seismic and 200 km of contingent 2D seismic together with the drilling of up to
three exploration wells, subject to rig availability. The location of the wells, the first of which is
anticipated to begin drilling in September 2006, will be based upon seismic data acquired by ROC in
2005, the interpretation of which is expected to be completed within the next few months. It is
anticipated that a successful exploration drilling programme will lead to a prompt appraisal drilling
programme.
Commenting on the placement, ROC’s CEO Dr John Doran stated that:
“In addition to allowing ROC to greatly accelerate its exploration operations onshore
Angola, the placement, which was substantially over subscribed, also delivers another key
strategic objective: the establishment of a significant shareholder base and a liquid market
for ROC shares in London.”
(1) based on an A$/£ exchange rate of 2.357