SYDNEY (XFN-ASIA) - Roc Oil Co Ltd plans to raise 219 mln aud...

SYDNEY (XFN-ASIA) - Roc Oil Co Ltd plans to raise 219 mln aud through a renounceable rights issue of about 81 mln shares, the company said.

It said the issue would allow it to reduce debt incurred in its recent acquisition of 24.5 pct of the Zhao Dong oil field off the Chinese coast.

Eligible shareholders will be offered three new shares for every eight they hold on Nov 10 at 2.70 aud each, a 24 pct discount to Roc's closing price of 3.55 aud yesterday.

The rights issue is fully underwritten by investment bank UBS.

Roc has a net output of 11,000 barrels of oil a day.

It said its development and drilling program has the potential to increase shareholder value.

The company said it would focus in the coming year on completing the development of and starting production from the Blane oil field and the Enoch oil and gas field in the North Sea, with the first oil due to be produced in the first half next year, and on developing the Zhao Dong oil field, with the first oil expected to be produced in 2008.

Roc is doing pre-development work at the Wei 6-12 South oil field off China, and evaluating the potential for further exploration and possible drilling in the vicinity of Wei 6-12.

It also plans to start exploratory drilling of at least three wells in the Cabinda South Block in Angola in the first half of next year and to continue exploring in the Perth Basin off Western Australia, in areas off Mauritania and in the Rio Muni Basin off Equatorial Guinea, assuming exploration rigs are available.


I dunno abt you guys...but at 2.70, it is a bargain... so cant wait to get my entitlement in. SP need to drop to 2.70 to lose money on it. With new drilling and development and increase production in 2007, ROC will be in $4-5. The it will be a target for t/o as happen to hardman.