Production Update: Zhao Dong

RNS Number:8415I
Roc Oil Company Limited
30 November 2007


30 November 2007

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

                        PRODUCTION UPDATE: ZHAO DONG BLOCK,
                            BOHAI BAY, OFFSHORE CHINA


Key Points

*   A recent production increase at the C & D Oil Fields in the Zhao Dong Block,
Bohai Bay, offshore China, has seen gross oil production rise to 25,000 barrels 
of oil per day ("BOPD") from mid-year production levels which were in the high 
teens.

*   This lift in production coincides with a record realised oil price of 
approximately US$81/BBL and a shipment of 306,000 barrels net ROC in late 
November.

ROC, on behalf of its wholly-owned subsidiary Roc Oil (Bohai) Company, which has
a 24.5% operated interest in the Zhao Dong Block in the Bohai Bay, offshore
China, is pleased to provide the following production and drilling progress
report regarding the C and D Oil Fields.

*   The 2007 Zhao Dong drilling programme began in April and is scheduled to
    finish in early December when the last well, a water injector, will be
    drilled. The total programme comprises 13 wells consisting of 11 oil
    producers and two water injectors.

*   The four most recent producers, all completed since mid-September, have
    boosted gross production to the current level of 25,000 BOPD. This rate
    compares with quarterly production averages of 21,000 BOPD, 18,700 BOPD and
    17,320 BOPD for the first, second and third quarters of 2007, respectively.
    The current expectation is that Zhao Dong production will exit 2007 at a
    rate in excess of the 22,000 BOPD 2006 exit rate.

*   This recent lift in production coincides with a record realised oil
    price of approximately US$81/BBL and a 306,000 BBL ROC shipment on 24
    November, 2007. The November price represents a 62% improvement on the year
    low realised price of approximately US$50/BBL in February 2007.

*   Total 2007 gross production for Zhao Dong is expected to be in the order
    of 7.2 MMBO, representing an average of 19,700 BOPD (ROC net: 4,800 BOPD).
    This is 22% less than the gross production target set by ROC at the
    beginning of the year which was identified at the time as being ambitious.
    The 2007 production shortfall, which has been reported previously, mainly
    relates to the underperformance of four wells which did not meet
    expectations due to reservoir and geological complexities, some of which are
    now better understood, as well as other producing wells which experienced
    minor mechanical difficulties which have largely been resolved. The overall
    revenue impact of this underperformance has been offset to some extent by
    the oil price strengthening referred to above.

*   Typically, the seven successful producers drilled during 2007, all of
    which either met or, in the case of the most recent wells, largely exceeded,
    original expectations and pay out quickly, sometimes within three weeks.

Commenting on the drilling and production results, ROC's CEO John Doran stated
that:

"  The recent uptick in production is hard won and warmly welcomed. It keeps
ROC's current company-wide production comfortably above the 10,000 - 12,000 BOPD
previously quoted target range.

*   ROC's basic business plan for Zhao Dong was to treat the C and D Oil Fields
as well factories: keep drilling costs under control, during a period of rampant
industry inflation and focus on well profitability in the context of a full
drilling season - and that is exactly what happened. The first five producers
completed this year effectively paid out the costs associated with the entire
2007 programme leaving the wells completed most recently and the pre-2007
producers notionally free of operating costs.

*   Concurrent with the 2007 drilling activity in the C and D Oil Fields work
continued on the expansion of those facilities and also on new facilities for
the C4 Oil Field Development."


In accordance with ASX and AIM Rules, the information in this Release has been
reviewed and approved by Dr John Doran, Chief Executive Officer, Roc Oil Company
Limited, BSc (Hons) Geology, MSc and PhD. Dr Doran, who is a member of the
Society of Petroleum Engineers, has more than 30 years relevant experience
within the industry and consents to the information in the form and context in
which it appears.



Damian Fisher
General Manager
External Affairs & Investor Relations

                                         For further information please contact:
                                                                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)20 7495 5707/+61 (0)2 8356 2000
                                     Mob: +44 (0)7751 3671 49/+61 (0)417 261 727
                                                     Email:  khird@rocoil.com.au
                                                                                
                                                                    Michael Shaw
                                    Oriel Securities Limited (Nominated Adviser)
                                                       Tel:  +44 (0)20 7710 7600
                                                                                
                                                                     Bobby Morse
                                                         Buchanan Communications
                                                       Tel: + 44 (0)20 7466 5000
                                                       Fax: + 44 (0)20 7466 5001
                                                  E-Mail: bobbym@buchanan.uk.com
                                                        Mob: +44 (0)7802 875 227
                                                                                


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

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