Cmon, if you are around, I think the PSC that ROC has secured is...

Cmon, if you are around, I think the PSC that ROC has secured is a good one.

I can again only say well done to ROC management, the deal seems like a company maker to me...

Just listened to the webcast. Here are my basic notes.
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600-700mmbo in place.
Simpler reservoirs than Zoh Dhong fields
But compartments are significantly larger,
Hence our belief that we can increase recoveries.

Stage 1 - 2-3 years. Reinvigorate field, re-entry of old wells, side-tracks etc. all lower costs than drilling new wells.

Can reasonably expect 20-30% increase in recoveries. Huge potential.

Total minimum commitment
Stage 1 70 mil
Stage 2 50 mil
25 mill over 4 years.

Basically, the PCS is set up so the more oil we produce over the current rate, the greater the percentage of profit we get. Cumulative volume from 1st of Jan, not production rates.

Can we take a guess and say we only make $10 a barrel right now?
Then the number would increase quite a bit as ROC increases production.


Stage 1 is self funding… Stage 2, lets see how Stage 1 goes, but happy to farm down part of the project if we need to.

Net Capex for 2014 - 40-50 million (in addition to current capex, fully cost recoverable)
This includes the carry.

3-4 cents a share in profit from the project in 2014

Q&A part -

10,000 gross production rates should continue for foreseeable future if small bolt on development/redevelopments are undertaken.

Of particular note, because the field has been producing for 20 years now, still large parts of the field that have yet to have appraisal drilling… exciting possibilities.

Lots of infrastructure and wells. Reasonably developed, but not optimal for re-injection process, so will need 2-3 more platforms, for drilling and hold water etc. Pipelines in all the fields.

Original facilities were for 45k bopd, currently underutilised…..... Gas however, need further infrastructure, because the gas is being wasted/injected.

Oil price received - Brent + small extra.. 2-3 bucks maybe.