February 27, 2012 2:25PMOIL and gas producer Roc Oil today...

February 27, 2012 2:25PM

OIL and gas producer Roc Oil today booked its first annual profit since 2005, partly as a result of the higher oil price.

Roc announced a net profit of $US27.7 million ($25.89m) for the 12 months to December 31, 2011, compared to a net loss of $US35.9m in 2010.

The company said its producing assets in Australia, Africa, China and the UK had recorded a solid performance in 2011 although production was down 13 per cent to 2.7m barrels of crude oil, which the company flagged in January.

Production fell as a result of natural declines, the shutting of the BMG oil and gas fields in the seas off Victoria, and production interruptions at the Cliff Head oil field off Western Australia.

The average realised oil price was $US110.93 per barrel, up from $US78.60 per barrel in 2010.

Roc Oil chief executive Alan Linn said 2011 had been a very positive year for the company.

"It's the first financial result where Roc has actually booked a profit since 2005," Mr Linn said during a market briefing.

"It's mainly due to the solid performance of the underlying operational business, (and) our success at controlling costs.

"Obviously, the ongoing strong oil price has supported that considerably."

Mr Linn said production was within guidance. Production costs were around $US17 per barrel, as per guidance, down from $US21.87 per barrel in 2010.

Roc Oil divested most of its African assets and expanded the acreage of its Zhao Dong oil field in China during 2011.

Development of the Beibu Gulf oil fields in the South China Sea was ongoing, and production was expected by the end of 2012

Mr Linn said the environmental impact approval for the Beibu Gulf project was now in place, and Roc was now moving through the final government approval process.

Roc Oil also entered Malaysia in August, 2011 in a joint venture to develop the Balai Cluster Fields, off the coast of Sarawak.

Appraisal was expected to start between May and June 2012, depending upon rig availability.

Mr Linn said Roc was actively pursuing various other opportunities. "Our focus is predominantly China and Malaysia at this time."

Roc was also preparing for exploratory work in China and Africa and appraisals in Malaysia in 2012.

Roc forecast production of 6000-7000 barrels of oil per day and said operating costs would remain constant.

Roc's revenue from the sale of oil and gas for the 2011 calendar year rose 21 per cent to $285.8m.

The company did not declare a dividend.

Shares in Roc Oil rose 0.5 cents to 39.5c today.

http://www.theaustralian.com.au/business/profit-loss/roc-oil-swings-back-to-profit-on-high-crude-prices/story-fn91vch7-1226282856666