roc oil reaches quarterly milestone

Roc Oil reaches quarterly milestone
31/01/2007 By: Nicholas Grove

Roc Oil Company Limited (ROC) today said its quarterly sales volume hit the one million barrel mark for the first time in the three months ended 31 December 2006. The company also announced total sales revenue of $66.1 million for the period, up 4% on the previous quarter.

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Roc chief executive officer, Dr John Doran, said gross oil production from the ROC-operated Cliff Head Oil Field off Western Australia hit the two million barrel mark, just eight months after production start-up.

Gross oil production rates at the field reached approximately 8,700 barrels of oil per day for the quarter.

Dr Doran said ROC’s upside share price potential during 2007 could be viewed as being tied to oil price movements.

“To ensure that the share price is not simply a captive of the oil price, the company’s 2007 drilling and new venture programmes … would allow the share price to disconnect from oil price trends in the event of successful exploration/appraisal drilling and/or new asset acquisition,” he said in a press statement.

The company said that if it achieves a measure of success on these fronts then, regardless of whether oil prices stabilise, weaken or strengthen, the share price would have the potential to jump ahead of the oil price trend line.

“This sequential growth strategy means that the big growth year which has just gone will be followed immediately by another with equal growth potential,” Dr Doran added.

During the period under review, Roc said total working interest oil production of 847,087 barrels was up 3% compared to 825,039 barrels in the previous quarter.

The company also saw a 33% increase in total sales volume to 1,048,282 barrels compared to 788,749 barrels in the prior corresponding period.

At 1155 AEDT, shares in Roc Oil Company were up 2.0c at $3.05.