Roc Oil Pulls Trigger on Cabinda South Block in Angola

On October 26, 2004, ROC formally agreed with Sociedade Nacional de Combustíveis de Angola – Unidade Económica Estatal ("Sonangol"), the national oil company of Angola, to trigger the Production Sharing Agreement ("PSA") relating to the Cabinda South Block, onshore Angola, with an Effective Date of November 1, 2004. Work is expected to start on the ground during the first half of 2005 – marking the end of a 32 year hiatus of petroleum exploration activity onshore Cabinda.

As a result of triggering of the PSA, ROC, which has an 80% working interest and a 100% contributing interest in the Block, will pay to Sonangol a Signature Bonus of US$6 million. The remaining 20% interest in the Block is owned by Sonangol, which will be carried through the exploration phase. The term of the PSA, including two renewal periods, is six years. The minimum Work Program for the first four years includes seismic acquisition and three wells.

Commenting on the triggering of the PSA, ROC's Chief Executive Officer Dr John Doran stated that

"ROC has been steadily putting its Angolan strategy in place since 1998 when it first tried to acquire and accumulate equity in the Cabinda South Block. Six years later, ROC has an 80% interest and has formally agreed to trigger the PSA. Its been quite a journey. However, all we've really done is traveled to the starting line - now comes the real business of looking for and hopefully finding, significant amounts of oil onshore Cabinda. Consistent with statements made in ROC's Renounceable Rights Issue it is quite possible that ROC may farmout a minority interest in the Cabinda South Block but only on terms which reflect the upside potential of the area."