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Roc Oil Plans to More Than Double Exploration Spending in 2010
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By James Paton

Oct. 2 (Bloomberg) -- Roc Oil Co., a producer and explorer active in Australia, China and Africa, said it is ready to boost spending on drilling next year after slashing investment in 2009.

Roc Oil seeks to increase exploration spending to between $20 million and $30 million in 2010 from an estimated $10 million this year, Chief Executive Officer Bruce Clement said in a phone interview today. Roc spent $100 million in 2008.

“What we’ve done is get our balance sheet in order and get the company in the right financial shape,” Clement said from Sydney. “We’re looking for opportunities to grow in this part of the world.”

Roc Oil this year raised $76 million, paid off debt, cut one-fifth of its workforce and reduced spending after oil prices declined, a project in Angola failed to yield a commercial discovery and three drilling campaigns came to an end. After a decline of 84 percent in 2008, the company’s shares have recovered in Sydney, advancing 22 percent this year, almost matching the 24 percent gain in the S&P/ASX 200 Index.

The oil producer intends to have final development plans in place before the end of the year for an oil project in the Beibu Gulf off China’s coast and for the second phase of the Basker- Manta-Gummy project off southeastern Australia. The company also aims for drilling to begin next year at joint venture exploration wells in the Carnarvon Basin off Western Australia and in Equatorial Guinea, Clement said.

Roc Oil, which has reduced its operations in Africa, anticipates production being roughly flat next year after averaging between 10,000 and 11,000 barrels of oil equivalent a day in 2009, Clement said.

To contact the reporter on this story: James Paton in Sydney [email protected].

Last Updated: October 2, 2009 03:12 EDT

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