Roc Says that the decision to proceed with FEED is based on a proved and probable reserve estimate for the Cliff Head Oil Field of 21 MMBO recoverable. The provisional estimate for capital expenditure associated with the development of the Cliff Head Oil Field is approximately A$140 million, although the Joint Venture would emphasize that this figure is going to be defined much more precisely through the FEED process.
Subject to satisfactory completion of FEED and receipt of regulatory and Joint Venture approvals, it is anticipated that a final investment decision for the project will be made during the second quarter of 2004 and that first oil will be produced from Cliff Head during the second half of 2005. To support development planning, in particular optimization of development well design, a 3D seismic survey will commence over the field during late October.
In conjunction with the commencement of FEED, Roc will establish an operating office in Perth and Mr. Kevin English, Roc's Project Manager for Cliff Head, will relocate to Perth to manage the implementation of the Project.
Commenting on the proposed development at Cliff Head Oil Field, Roc's Chief Executive Officer, Dr John Doran stated that: "The unanimous Joint Venture decision that the Cliff Head Oil Field is commercially viable represents a significant milestone for all participants in the Project. From a specific Roc perspective, we look forward to establishing a presence in Perth and to becoming an Operator of oil production offshore Western Australia."
The WA-286-P Joint Venture partners are Roc Oil as operator with 37.5%; AWE with 27.5%; Wandoo Petroleum with 25%; Voyager Energy with 5%; and Westranch Holdings with the remaining 5%.
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