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ROC OIL – UK NORTH SEA
2006 ANNUAL GENERAL MEETING
CHIEF OPERATING OFFICERBruce Clement
17 May 2006
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• 2005 Financial Results
• Development Projects» Chinguetti» Cliff Head» Blane» Enoch
• Cliff Head Development Review
CHIEF OPERATING OFFICER’S REPORT
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Profit After Tax $45.6 million
Four Development Projects Advanced• Three Projects Approved• Development Expenditure $103 million• Production commenced 1Q 2006
Saltfleetby Asset Sale Completed $109 million
Sound Financial Position at Year End• Cash Assets $66.4 million
Subsequent to Year End• Share Placement in January 2006 raised $75.9 million• Loan Facility Established US$30 million• First Oil from Chinguetti and Cliff Head
2005 FINANCIAL RESULTS - HIGHLIGHTS
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• Saltfleetby Asset Sale
• Exploration Expense and Write Off
• Income Tax Benefit
KEY RESULTS
Profit After Tax $45.6 million
Earning Per Share 24.5 cents
KEY DRIVERS
2005 RESULTSINCOME STATEMENT - OVERVIEW
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-63.7Saltfleetby Profit on Sale
-(8.0)Ardmore Provision
(26.2)45.6Profit / (Loss) after tax
1.740.4Income tax benefit
(28.0)5.2Profit / (Loss) before tax
(32.4)(48.2)Exploration costs expensed & written off
17.3(1.7)Trading (Loss) / Profit
38.30.9Sales Revenue
2004$ million
2005$ million
2005 RESULTSINCOME STATEMENT - DETAILS
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• Net sales proceeds of $109 million
• 2P Remaining Reserves 36 BCF gas, 6.2 MMBOE
• Sold to WINGAS for potential future gas storage
• Sales price ($17.30 / BOE) was a significant premium over valueof remaining reserves
• Profit Before Tax $63.7 million
• Profit After Tax $81.3 million
SALTFLEETBY ASSET SALE
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• Consolidated entity in sound financial position with $66.4 millioncash assets at 31 December 2005.
• No debt.
171.7215.0Total Equity
21.3(28.3)Net other (Liabilities) / Assets
21.5150.6Oil and Gas Assets
52.926.3Capitalised Exploration Expenditure (1)
76.066.4Cash Assets
31 Dec 2004$ million (2)
31 Dec 2005$ million
(1) $21.2 million Exploration Expenditure was transferred to Oil and Gas Assets in 2005.(2) A-IFRS
2005 RESULTSSUMMARY BALANCE SHEET
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2005 RESULTSSUMMARY CASH FLOW STATEMENT
66.4Closing Cash 31 December 2005
(2.8)Other(40.3)Exploration Expenditure(92.7)Development Expenditure
Investments:(3.8)Net Cash from Operating Activities22.1Proceeds from Share Issue
107.9Saltfleetby Sale Proceeds76.0Opening Cash
$ million
83.2Closing Cash 30 April 2006 (1)
(1) Unaudited
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• Significant investment in development projects during 2005
102.8Total4.7Enoch7.0Blane
21.5Chinguetti69.6Cliff Head
$ millionDEVELOPMENT PROJECT
• Similar level of investment planned for 2006, primarily for Blane and Enoch and completion of Cliff Head
2005 DEVELOPMENT EXPENDITURE
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12.1Angola6.5UK
41.6Total1.9Other
8.8Mauritania2.9China9.4Perth Basin
$ millionEXPLORATION AREA
• Continued focus on exploration across all ROC’s assets
2005 DEVELOPMENT EXPENDITURE
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• $45.6 Million Profit After Tax for 2005
• Sound financial position at 31 December 2005
– Cash assets of $66.4 million
• Strengthened by share placement in January 2006
– $76 million
• US$30 million Loan Facility in place, but undrawn
• Expected Cash Flow from four new developments overnext 12 months
FINANCIAL SUMMARY
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• Chinguetti Oil and Gas Field, offshore Mauritania ROC 3.25%
• Cliff Head Oil Field, offshore Perth Basin, WA ROC 37.5%
• Enoch Oil and Gas Field, North Sea, UK/Norway ROC 12%
• Blane Oil Field, North Sea, UK/Norway ROC 12.5%
ROC’S DEVELOPMENT PROJECTS
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CHINGUETTI OIL AND GAS FIELDROC 3.25%
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Chinguetti production commenced 24 February 2006ROC’s first cargo sold March 2006
CHINGUETTI OIL AND GAS FIELDROC 3.25%
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Blane Subsea Development
Ula Platform Complex
BLANE OIL FIELD DEVELOPMENTROC 12.5%
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BLANE OIL FIELD DEVELOPMENT
Module for host facilities on Ula Platform
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Enoch Subsea Development
Brae “A” Platform
ENOCH OIL AND GAS FIELD DEVELOPMENTROC 12%
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At the beginning of 2005, Cliff Head presented many unique challenges for ROC, including:
– ROC’s first operated offshore development project;
– The construction market in 2005 was overheating;
– The development was located in environmentally sensitive areas, both offshore and onshore;
– Cliff Head crude oil requires careful handling, with significantpotential flow assurance problems; and
– The project included development work in Federal and State waters, as well as onshore construction under Local and State government jurisdiction.
CLIFF HEAD DEVELOPMENT
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How did ROC manage these challenges?
– Direct management of all elements of the project from design through to commissioning and operation;
– Establishing a ROC Project Management Team responsible for the safe delivery of the project;
– Working closely with all community and government stakeholders in the project;
– Working closely with a range of contractors and sub-contractors providing services and equipment to the project;
– Focusing on meeting and exceeding ROC’s safety and environmental commitments for the project.
CLIFF HEAD DEVELOPMENT
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Cliff Head Development Plan - March 2005
CLIFF HEAD OIL FIELDROC 37.5% and Operator
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CLIFF HEAD JACKET AND TOPSIDES CONCEPTApril 2005
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ARROWSMITH SEPARATION PLANT CONCEPTApril 2005
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JACKET FABRICATION IN MALAYSIAJuly 2005
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UPENDING THE JACKETOctober 2005
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THE JACKET IN GERALDTON HARBOURNovember 2005
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The Ensco 67 jack-up rig installing the Jacket at the Cliff Head Oil Field
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MEZZANINE DECK MATING WITH CELLAR DECKJuly 2005
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TOPSIDES NEARING COMPLETIONNovember 2005
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492 TONNE TOPSIDES HEADING FOR CLIFF HEAD
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THE CLIFF HEAD DECK LIFT
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ARROWSMITHJune 2005
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ARROWSMITHNovember 2005
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ARROWSMITHJanuary 2006
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What did ROC achieve with Cliff Head?
– ROC’s first operated offshore development project;
– Designed, constructed and commissioned the facilities to produce first oil within 14 months following the investment decision;
– Budget overrun by approximately 20% in an extremely difficult contracting environment;
– Excellent environmental outcome – the first “nil condition” licence granted by DOE for this type of project;
– Good, but not perfect, safety performance;
– Obtained all 160+ government approvals for the project;
– Designed and built facilities that can produce and process Cliff Head crude oil with a pour point over 30o C.
CLIFF HEAD DEVELOPMENT
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CLIFF HEAD DEVELOPMENTFIRST OIL HAD EVERYONE SMILING
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I’m still an engineer with a strong financial tendency.This is what really makes me smile.
CLIFF HEAD DEVELOPMENTFIRST OIL DELIVERY TO BP
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ROC OIL – UK NORTH SEA
2006 ANNUAL GENERAL MEETING
GENERAL MANAGER - EXPLORATIONWes Jamieson
17 May 2006
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3 DISCOVERIES, ALL IN MAURITANIA, BUT CURRENTLY PERCEIVED TO BE COMMERCIALLY CHALLENGING OR SUB-COMMERCIAL
– Tevet (Cretaceous), Labeidna, Faucon
2005 – ANOTHER ACTIVE YEAR
• 8 Exploration Wells and 1 Appraisal Well• 1755 km² of new 3D Seismic • 780 km of new 2D Seismic
EXPLORATION REVIEW
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41 EXPLORATION WELLS SINCE IPO US$ 38.4M / A$ 56.3M
11 ‘Significant’ Discoveries(Commercial or Regionally Significant)
1 Perth Basin / Australia - oil
2 Beibu Gulf/China - oil, oil & gas
8 Mauritania - 5 oil / 3 gas
Most significant• Chinguetti
• Cliff Head
• Wei 6-12S-1
• Tiof
0
2
4
6
8
10
12
14
16
18
1999 2000 2001 2002 2003 2004 2005 2006
Num
ber o
f wel
ls
Planned
Currently Drilling
Drilled Wells
Cliff HeadChinguetti
BandaWei 6-12-1
PelicanTiof
TevetTevet DeepLabeidnaFaucon
Wei 6-12S-1
Cliff Head - Significant Discoveries
EXPLORATION REVIEW
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EXPLORATION STRATEGY REMAINS
• Utilise modern technology cost-effectively to enhance probability of success
• Reduce lead times from concept/discovery to reserves/production
• Be in the right basin/right area of the world
• Develop a mixed programme that provides steady growth but incorporates one or two potentially company changing wells in each annual programme
• Focus manpower and activity on areas with “potentialto deliver”
EXPLORATION REVIEW
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UPDATE ON SELECTED ACTIVITIES
Angola
China
UK
EXPLORATION REVIEW
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EXPLORATION ACTIVITY
2004PSA activated on 1 November 2004
2005Seismic – 162 km2 3D, 505 km 2D plus Geological and Geophysical studies
2006 - PlannedSeismic – 240 km2 3D, 220 km 2D plus Geological and Geophysical studiesDrilling - 3 exploration wells
ANGOLA CABINDA SOUTH ONSHORE BLOCK
EXPLORATION REVIEW
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General Area of20063D seismic
General Area of20062D seismic
20053D seismic
SEISMIC & DRILLING ‘ACTIVITY’ – CABINDA SOUTH
Pre-ROC440km multi fold 2D seismic33 wells
ROC 2005162 km2 3D seismic505 km 2D seismic
ROC 2006240 km2 3D seismic220 km 2D seismic3 wells
EXPLORATION REVIEW
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CABINDA SOUTH CONCEPTUAL PLAY TYPESAS DEVELOPED PRE 2005 SEISMIC AQUISITION
PRE SALT
SOURCE INTERVAL
POST SALT
SALT
EXPLORATION REVIEW
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W E
REPRESENTATIVE 3D SEISMIC LINE
KEY OBSERVATIONS
Good data quality
Abundant structuring
Overall confirmation of conceptual play types
EXPLORATION REVIEW
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W E
REPRESENTATIVE 2D SEISMIC LINE
KEY OBSERVATIONS
As per 3D line
Good representation of Regional Geology
Multiple play types apparent
EXPLORATION REVIEW
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EXAMPLE OF A REGIONAL POST SALT PLAY FAIRWAYADJOINING RESERVES / PRODUCTION ESTABLISHED
circa 125 mmbblsC
circa 100 mmbblsB
circa 1,200 mmbblsA
RESERVES AREA
Sources: general industry data
PlayFairwayTrend
A
CB
EXPLORATION REVIEW
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2005 SEISMIC ACQUISITION OPERATIONS
GEOGRAPHIC SETTING & PHOTOGRAPHS
EXPLORATION REVIEW
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SEISMIC ACQUISITION IN CONTEXT OF BLOCK GEOGRAPHY
COASTAL PLAIN
SAVANNAH
HEAVILY VEGETATED
/JUNGLE
General Area of20063D seismic
General Area of20062D seismic
General Area of20053D seismic
EXPLORATION REVIEW
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TYPICAL LANDSCAPES
OUTSIDE CABINDA CITY
EXPLORATION REVIEW
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TYPICAL SMALL VILLAGES IN
SOUTH WEST OF BLOCK
EXPLORATION REVIEW
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LINE SURVEYING
EXPLORATION REVIEW
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LINE LOCATING& MARKING
EXPLORATION REVIEW
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OPERATIONAL CHALLENGES
EXPLORATION REVIEW
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VARIABILITY OF OPERATING CONDITIONS
EXPLORATION REVIEW
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DRILL & GEOPHONE CREWS
EXPLORATION REVIEW
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DRILLING DYNAMITE SHOT-HOLES WITH
MAN-PORTABLE EQUIPMENT
EXPLORATION REVIEW
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SEISMIC ACQUISITION - VIBROSEIS
EXPLORATION REVIEW
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BORDER CROSSING TO DEMOCRATIC REPUBLIC OF CONGO
EXPLORATION REVIEW
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CHINA - BEIBU 22/12 BLOCK
MAJOR EXPLORATION ACTIVITIES
2002Drilled Wei 6-12-1 discovery wellAcquired 460 km2 3D seismic
20042 Appraisal wells & 1 exploration well – southern area of block; disappointing overall.
2006Just drilled Wei 6-12S-1 discovery - follow up appraisal planned
EXPLORATION REVIEW
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FROM 2003 AGM
Wei 6-12-1 drilled in 2002
Oil discovery but not considered commercial on stand alone basis
Single 13.5m sand
EXPLORATION REVIEW
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WEI-12-6-1 Discovery WEI-12-6 South Prospect
NE SW
1km0
6-12 SOUTH PROSPECT• Strong Analog to 6-12-1 Discovery, on Trend and Potentially Bigger• Could move 6-12 Complex to Commerciality
FROM 2005 AGM
EXPLORATION REVIEW
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WEI 6-12S-1 RESULTS
• Drilled in Late April - Early May 2006• Commitment Well• 3 km SW of 6-12-1 discovery (2002) • A gross interval of ~500 m contains
numerous separate reservoir sands• Total Net pay ~100 m Oil & Gas
EXPLORATION REVIEW
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6-12 SOUTH PROSPECT – SEISMIC ‘TIE’ TO 6-12-1 DISCOVERY
Multiple pay zones –100 m net over 500m interval
Single 13.5m oil sand intersection
Up-dip potential
EXPLORATION REVIEW
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ONSHORE UK WILLOWS WELL
Primary objective is the Rotliegendes sandstone, the reservoir sequence for most
of the southern North Sea gas fields
0 5km
EXPLORATION REVIEW
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Line 5120 flattened on Top Kirkham Abbey
ROTLIEGENDES INTERVAL
OBVIOUS THICKENINGIN RESERVOIR INTERVAL
WILLOWS – SEISMIC & WELL SUPPORT
WILLOWSPROSPECT
CAYTHORPE GAS FIELD
RESERVOIR PINCHOUT
EXPLORATION REVIEW
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PLAY TYPE DEMONSTRATED TO WORK WITH LARGE RESERVES IN ADJACENT OFFSHORE AREA
WILLOWSMean reservestarget ~75 bcf
60km
EXPLORATION REVIEW
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EXPLORATION DRILLING ACTIVITY FORECAST Most likely outlook to End 2006
ANGOLA 3 Stretch target & assuming a rig is contracted
CHINA 1 Sidetrack appraisal to 6-12S-1 discovery
MAURITANIA 5 - 6 A couple of ‘potentially big’ wells are planned
PERTH BASIN 1 - 2 Planned 4 but slippage a distinct possibility with fixed term return of rig contract and Cliff Head priority
ONSHORE UK 1 Willows ____
12 - 13
EXPLORATION REVIEW
IMPORTANT NOTE:THE TIMING AND THE NUMBER OF WELLS MAYBE REVISED DUE TO RIG AVAILABILITY, LOGISTICSAND/OR JOINT VENTURE AND GOVERNMENTDECISION-MAKING PROCESSES
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