Guy's - don't forget Beibu Gulf which even with CNOOC participation will still leave ROC with around 20% interest. On ROC website they estimate reserves at 26.5mmbbl's but on Horizon Oil website (they have just under 15% interest in the development) they estimate the reserves to be 58mmbbl's. The feasibility study has been completed and it is almost certain that the investment proposal will be given the green light early next year. Development costs have been estimated at circa $200m of which $40m will be ROC's contribution. Taking the reserves at somewhere in the middle of ROC & HZN's estimates at say 40mmbls, ROC's share would be 8mmbls taking the average POO for 2012 as $80 this would be worth $600m for ROC after deduction of development costs and if POO goes up to $100 then this figure becomes $750m. With production assets in Bohai Bay & Beibu Gulf, this would also increase chances of a bid from one of the Chinese majors such as Petrochina.
Please as always DYOR prior to making investment decisions.
ROC Price at posting:
65.0¢ Sentiment: Buy Disclosure: Held
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