Ardmore Re-development Update

RNS Number:1102N
Roc Oil Company Limited
03 June 2005



3 June 2005

                         ROC OIL COMPANY LIMITED ("ROC")
                            STOCK EXCHANGE RELEASE

                         ARDMORE RE-DEVELOPMENT UPDATE:
                       ADMINISTRATIVE RECEIVER APPOINTED
                          FOR ACORN NORTH SEA LIMITED

KEY POINTS

*   At the request of Roc Oil (GB) Limited ("ROCGB"), a wholly owned subsidiary
    of ROC, Kroll Limited has been appointed as Administrative Receiver over 
    Acorn North Sea Limited ("ANSL"). The move is designed to preserve ROCGB's 
    entitlements as lender with first ranking security over ANSL's assets in
    accordance with a Security Agreement acquired by ROCGB on 17 December 2004 
    (the "Security Agreement").

*   ROCGB's request that an Administrative Receiver be appointed to ANSL was
    triggered by uncertainty concerning the future of the Operator of the
    Ardmore Field, Tuscan Energy (Scotland) Limited ("TESL") and consequential
    concerns about the future viability of the Ardmore project.

*   ROCGB's association with the Ardmore Field is through an Agreement which
    entitles, but does not oblige, the company to acquire up to 26% equity in
    the Ardmore Field (the "Option"). Because this Option has not been
    exercised, ROC has no ongoing financial obligation to ANSL or the Ardmore
    project and there will not be any impact on ROC's current cash position,
    reported reserve base or future cash flow projections.

Subsequent to receipt of information indicating that the future of TESL,
Operator of the Ardmore Field, is uncertain and, consistent with the terms and
conditions of the Security Agreement, Administrative Receivers have been
appointed to ANSL in order to preserve and realise the maximum value of that
company's assets.

Presently, ANSL's assets include 35% of the Ardmore Production Licence and
surrounding exploration licences, which contain exploration prospects and small
undeveloped, or partly developed fields: cash in a US$ account and an
entitlement to 35% of the value of a cargo of crude oil currently in a tanker
awaiting sale in Europe.

ROCGB is the majority bank under the Security Agreement, which entitles the
lenders to first ranking security over the assets of ANSL. Since entering into
the Agreement in December 2004, ROC has lent a total of #4.5 million, as
detailed in ROC's Quarterly Report for 1Q2005 and its Annual Financial Report
for 2004. ROCGB has not made any loan to ANSL since 31 March 2005 and does not
intend to make any further loans.

In its 30 December 2004 Stock Exchange release ROC stated that it was the
Ardmore Joint Venture's intention to workover an existing well to bring it back
on to production at a rate in excess of 2,000 BOPD and also to drill a fourth
re-development well which it was hoped would further increase the field's
production to in excess of 12,000 BOPD by May 2005.

In fact, the Joint Venture chose to work over two wells, but results from both
fell short of the Operator's predictions. In particular, although the second
workover indicated a productive capacity considerably in excess of 2,000 BOPD
the well produced only 1,200 BOPD, probably because of well bore damage, prior
to the mechanical failure of the downhole pump, after which production ceased.
The new drill well, which had been planned for 2Q2005, has now been postponed,
due to a variety of non-technical reasons and is not now expected to be drilled,
at least not as part of the current re-development plan.

Details of ROC's Option, the Ardmore Field and the immediately surrounding
areas, can be found in ROC's Stock Exchange releases, particularly the release
dated 30 December 2004.

Commenting on the Ardmore situation, ROC's Chief Executive Officer, Dr John
Doran, stated that:

"When ROC announced in December 2004 that it had acquired entitlements under the
Security Agreement and the Option with regard to the Ardmore Field, it stated
that the Company expected to lend up to #4.5 million in relation to the project
- and that is what it has done.

In order for the Ardmore re-development concept to have had a chance of being
successful four key elements were required: trouble free near term operations, a
corporately stable and financially robust Operator, production rates generally
above 6,000 BOPD and high oil prices. Unfortunately, in recent times neither the
operations nor the Operator were trouble free. Furthermore, due to downhole
mechanical problems, production recently fell below 6,000 BOPD. The combination
of these three factors has had an overall negative impact upon the commercial
viability of the project in the immediate term that even high oil prices could
not offset.

When ROC announced its Option over Ardmore it stated that the oil that remained
to be recovered from the field could not be categorised as commercial reserves
unless the re-development drilling programme yielded positive results. Because
of this, ROC did not book any reserves from Ardmore nor take into account any of
the production revenue that could be attributed to the equity parcel over which
it had its option. Therefore, the most recent events at Ardmore will not have
any impact upon ROC's reported reserves nor future cash flow.

Similarly, ROC took care to structure the arrangement with ANSL so that it
acquired an option to acquire an interest in the Ardmore Field, rather than
direct equity in that field. As a result, ROC was able to terminate the
arrangement at its discretion without any ongoing financial obligation in
relation to ANSL or the Ardmore Field.

Because of the circumstances referred to above, the technical concept upon which
the latest Ardmore re-development plan was based has still not been properly
tested. This is frustrating - but it is not so frustrating as to cause ROC to
want to lend more money to ANSL as opposed to trying to resolve the situation
via the appointment of an Administrative Receiver over ANSL so that the value of
ANSL's assets may be realised in an orderly manner. As this process unfolds, ROC
will keep its shareholders fully informed in its usual timely manner."

Dr John Doran                            For further information please contact:
Chief Executive Officer                                         Dr John Doran on
                                                            Tel: +61-2-8356-2000
                                                            Fax: +61-2-9380-2635
                                                     Email: jdoran@rocoil.com.au
                                       Or visit ROC's website: www.rocoil.com.au

                                                                   Dr Kevin Hird
                                            General Manager Business Development
                                                       Tel:  +44 (0)207 586 7935
                                                       Fax:  +44 (0)207 722 3919
                                                     Email:  khird@rocoil.com.au
 
                                                                    Nick Lambert
                                            Bell Pottinger Corporate & Financial
                                                       Tel:  +44 (0)207 861 3232


                      This information is provided by RNS
            The company news service from the London Stock Exchange

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