Roc Says Mechanical Problems with Saltfleetby Field Solved

ROC reports that the gas compression facility at the third party-owned Theddlethorpe Gas Terminal, which receives all the production from the Saltfleetby Gas Field onshore United Kingdom, has been recommissioned following the rectification of mechanical problems that occurred last month. As a result, production at Saltfleetby has increased to approximately 20 MMSCFD and is expected to edge a little higher as all the wells are brought back on to full production.

As a result of Saltfleetby gas production being constrained for 26 days the Company anticipates that towards A$2 million of operating cash flow will be deferred as opposed to the A$5 million deferral estimate provided in ROC's ASX Release dated 13 February 2004 when at least two months downtime was expected. Some of this deferred cash flow is expected to be recaptured during the balance of the year, particularly since current spot gas prices in the UK are very strong being recently around A$6.00/mcf, the highest March price for three years.