Roc Oil (WA) Pty Limited, a wholly owned subsidiary of ROC, has agreed to acquire an additional 5.0% interest in WA-31-L, which is located in the offshore Perth Basin, Western Australia, and contains the ROC-operated Cliff Head oil field, from CIECO Energy Australia Pty Ltd for A$4.5 million subject to working capital adjustments.
The effective date of the acquisition is 1 January 2011. Following the completion of the acquisition, ROC’s interest in WA-31-L will increase to 42.5%.
The agreement is subject to normal industry terms and conditions, including the receipt of relevant joint venture and government approvals.
The acquisition will increase ROC’s 2P Reserves by approximately 0.4 MMBBL (Cliff Head remaining 2P Reserves as at 31 December 2010 were 7.5 MMBBL).
Commenting on the acquisition, ROC’s Chief Executive Officer, Alan Linn, stated:
"The acquisition of 5% of the Cliff Head oil field will provide incremental 2P Reserves from an asset that ROC discovered, appraised, developed and operates. An element of ROC’s strategy is to continue to exploit the Company’s existing reserve base. In 2010, following successful workovers to install higher-rate downhole Electric Submersible Pumps at two wells, Cliff Head production recorded a year-on-year production increase. Another workover was completed in August this year and has
improved production rates by over 1,000 BOPD. ROC is also assessing near field appraisal potential around Cliff Head that could be tied into existing facilities."