2007Financial Results Summary

Roc Oil Company Limited
28 February 2008



28 February 2008

                         ROC OIL COMPANY LIMITED ('ROC')
                             STOCK EXCHANGE RELEASE

                         2007 FINANCIAL RESULTS SUMMARY

Today, ROC released its ASX Preliminary Final Report (Appendix 4E), Directors'
Report and Annual Financial Report for the Financial Year ended 31 December
2007. As noted in ROC's 4Q 2007 Report to Shareholders, ROC is now using US
dollars as its functional and reporting currency. The key highlights are:

FINANCIALS

•    Record sales revenue of US$208.5 million (2006: US$109.7 million); up 90% 
     on the previous year.

•    Record oil prices with an average sales price of US$70.16/BBL, (before
     hedging); a 3% discount to the Brent oil average price.

•    Record net cash flow from operations of US$138.1 million (2006: US$47.0
     million); up 193%, due to increased production and higher oil prices.

•    Record trading profit of US$87.4 million (2006: US$22.7 million); up 284%.

•    Record EBITDAX (excluding exploration expense) of US$108.7 million (2006:
     $US64.1 million); up 70%.

•    Net loss after income tax of US$83.3 million (2006: loss of US$44.9
     million) after exploration expensed of US$88.9 million and a hedging and
     derivative expense of US$68.8 million, partially offset by a tax benefit 
     of US$21.4 million relating to a change in the Chinese Corporate tax rate.

•    Amortisation expense of US$98.7 million (2006: US$51.4 million) including 
     accelerated amortisation of US$17.3 million relating to a 2.1 MMBBL 
     decrease in 2P reserves and estimated future cost increases for the Zhao
     Dong C & D Oil Fields, offshore China.

•    New four year revolving US$200 million debt facility.

•    Year end debt of US$133.3 million (2006: US$137.5 million), partially
     offset by cash of US$41.4 million (2006: US$48.0 million).

OPERATIONS

•    Record production of 3.5 MMBOE from six producing fields in Australia,
     Africa, China and UK compared to 2 MMBOE produced from four fields in 2006,
     an increase of 77%.

•    Exploration drilling; a statistical success with four discoveries from  the
     six exploration wells completed during the year:

    -  the potentially significant Massambala-1 heavy oil discovery, onshore
       Angola;

    -  three discoveries, two potentially commercial, in the North Perth Basin,
       offshore Western Australia.

•    Total exploration and appraisal expenditure of US$94.7 million (2006: 
     US$59.1 million).

•    Development expenditure of US$57.4 million (2006: US$93.6 million) relating
     to:

    -  the completion of two major field developments - Enoch and Blane in the
       North Sea;

    -  significant progress on the Zhao Dong C & D Oil Fields Incremental
       Development Project and the C4 Oil Field Development Project, offshore
       China; and

    -  completion of the Chinguetti-18 development well, offshore Mauritania.

•    Progress was made on the Wei 6-12 South and Wei 6-12 pre-development
     project in Block 22/12, Beibu Gulf, offshore China, which is expected to
     reach a development decision in mid 2008, offering near term development
     upside for shareholders.

Commenting on the 2007 Financial Results, ROC's Chief Executive Officer, Dr John
Doran, stated that:

'The 2007 Financial Results have been well flagged by ROC's previous stock
exchange releases, particularly the ones dated 25 and 31 January 2008.
Therefore, there are no surprises. In this context, the results could even be
described as 'boring' - in the very best sense of that word.

The fundamental results speak for themselves. New records were established with
regard to those metrics which are most important to the running of the Company's
business: production; sales revenue; net cash flow from operations; EBITDAX and
trading profit. These are the measurements that best describe the Company's 2007
financial results.

There are two significant charges in the 2007 results which are, quite frankly,
a source of frustration, because, for some shareholders, their sound bite
prominence and their impact on the Profit and Loss line could obscure the
underlying quality of the results referred to above. In reality, these charges
simply reflect the accounting methodology which the Company applies to its hedge
position and its exploration drilling activities. 'Onerous' is one description
that comes to mind. 'Conservative' is another. Using such adjectives to describe
the accounting practices is not to criticise them in any way as much to describe
them in an attempt to ensure that all shareholders clearly understand that they
do not impact the Company's basic business operation. Both issues were addressed
in some detail in the CEO's Comments which accompanied the Half Year Results
that were released on 30 August 2007 and therefore there is no need to delve too
deeply into the accounting philosophy other than to say that:

•    There is a self evident irony about being required to expense a total of
     US$22.6 million during 2007 in relation to three exploration wells, each 
     of which made a discovery that is considered to be potentially commercial
     thereby meriting further evaluation;

•    Similarly, with only a minority of its proved and probable reserves,
     about 15% hedged (at US$ 70/BBL), ROC's cash flow benefits enormously from
     high oil prices. Yet, because of the requirement that ROC mark-to-market 
     its hedge position at the end of each report period, the higher the oil 
     price goes the bigger the derivative loss ROC posts in its Profit and Loss
     line. For example, because the Brent Oil Price forward curve on 31 December
     2007 was an average of US$88.46/BBL the Company recorded a non-cash loss of
     approximately US$65 million. If Brent had been selling for US$ 50/BBL on 
     the same date, a non-cash profit of approximately US$ 50 million would have
     been recorded. However, in the latter case, most of ROC's oil would have
     been sold at the realised equivalent of US$50/BBL instead of the almost 
     US$90/BBL. There is no doubt which scenario benefits ROC shareholders: a 
     high oil price generating more cash and a bigger non-cash derivative loss 
     is a whole lot better than a low oil price that provides a non-cash book 
     profit and much less cash to the Company.

Perhaps, it is a measure of the current financial market climate that the bulk
of this CEO's report has to focus on the least important - but most easily
misunderstood - part of the 2007 Financial Results, whereas the real financial
meat of the results can be addressed in one and a half lines as in the second
paragraph of these comments; or, even more succinctly, in just four words - an
excellent fundamental result.

So much for the past. A forward glance into the balance of 2008 identifies the
largest exploration drilling programme ever undertaken by the Company, including
four pre-salt exploration wells in Angola; major developments in both the Bohai
Bay and, subject to a development decision, in the Beibu Gulf, offshore China
plus continuing production from six established fields in four countries. In a
nutshell: an outlook that is both well balanced and potentially very exciting.'



Dr John Doran
Chief Executive Officer
                                         For further information please contact:
                                                                Mr Bruce Clement
                                                         Chief Operating Officer
                                                            Tel: [phone]
                                                            Fax: [phone]
                                                   Email: [e-mail]
                                       Or visit ROC's website: www.rocoil.com.au
                                                                                
                                                                   Dr Kevin Hird
                                          General Manager - Business Development
                                     Tel: [phone]
                                     Mob: [phone]
                                                     Email:  [e-mail]
                                                                                
                                                                    Michael Shaw
                                    Oriel Securities Limited (Nominated Adviser)
                                                       Tel:  [phone]
                                                                                
                                                                     Bobby Morse
                                                         Buchanan Communications
                                                       Tel: + 44 (0)20 7466 5000
                                                       Fax: + 44 (0)20 7466 5001
                                                  E-Mail: [e-mail]
                                                        Mob: [phone]
                                                                                


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