Beibu Gulf Drilling Program Delayed

ROC has been advised that the Nanhai IV drilling rig is expected to be released from its current operations during the first half of February 2004. Therefore, the Wei 12-7-1 exploration well, the first of at least two and, perhaps, as many as five, back-to-back wells scheduled to be drilled in Block 22/12 during the first quarter of 2004, is now expected to start drilling in mid-February 2004.

The Wei 12-7-1 exploration well, in 30 meters of water approximately 2 km north of the Wei 12-8-1 discovery well, is expected to take about 10 days to drill, log and evaluate to a Total Depth of approximately 1,700 meters. The Wei 12-7 Prospect is estimated to have the potential to contain recoverable reserves of several tens of millions of barrels.

Wei 12-7-1 will be followed immediately by Wei 12-8-3, an appraisal well of the Wei 12-8 oil accumulation and it is also expected to take about 10 days to drill. Wei 12-8 is estimated to have the potential to contain recoverable reserves of between 20 and 30 MMBO, subject to successful appraisal drilling.

Subject to the results of the first two wells, the Block 22/12 Joint Venture has made provision to drill up to three more back-to-back wells as part of the current drilling program. If the third well is drilled, the continuous drilling program is expected to extend into March 2004. In order for the fourth and fifth wells in the program to be drilled, the results of the first three wells would have to be very compelling, and, in such circumstances, ROC and its co-venturers would not expect to complete the continuous drilling program until April, 2004.

The Block 22/12 Joint Venture consists of Roc Oil (China) Company as operator with 40%; Horizon Oil with 30%; Petsec with 25% and Oil Australia Limited with 5%.