"CommSec maintains that ROC’s acquisition of AZA has destroyed...

"CommSec maintains that ROC’s acquisition of AZA has destroyed shareholder value. This is due to the capital involved, which is estimated at being up to $A 1,230m for field development plus US$ 400m for a larger FPSO, this estimate factors in CommSec’s assumption of $65/bbl as the Long Run oil price."

I guess it all depends on what ROC shares are trading at.

When ROC acquired AEL/AZA they basicly issued 289M shares. At yesterday's closing price of A$0.44c they paid the equivalent of A$127.2 or US$90.8M for the assets.

With BMG having 7.7 mmbbl prove and probable reserves and an additional 18.7 mmbbl contingent reserves it probably represents a good purchase for ROC if you yourself are buying ROC shares for A$0.44.

Regards

SP