Activity and Portfolio Update

Roc Oil Company Limited
11 January 2006





11 January 2006



                        ROC OIL COMPANY LIMITED ('ROC')
                                        
                             STOCK EXCHANGE RELEASE
________________________________________________________________________________
                                        
                          ACTIVITY AND PORTFOLIO UPDATE 

________________________________________________________________________________

KEY POINTS:
                                        
•   The Cliff Head Oil Field Development remains on schedule for first oil
    in 1Q 2006.

•   Weather, operational and equipment delays, increased costs for materials
    and services, together with other mechanical revisions and other industry
    factors, have resulted in a A$25 million (ca 10%) cost increase over the
    current budget.

•   Up to 21 exploration and appraisal wells scheduled for 2006.

•   New website live from 7.00 pm Wednesday, 11 January, 2006.

________________________________________________________________________________
                                        

1. CLIFF HEAD DEVELOPMENT PROJECT

Roc Oil (WA) Pty Limited, as Operator on behalf of the Cliff Head Joint Venture,
advises that the development of the Cliff Head Oil Field remains on track for
first oil production in 1Q 2006. Production start-up is currently expected
during 1Q 2006 with full field production due to be achieved shortly thereafter.

Recent project milestones include:

•   The jacket for Cliff Head 'A' platform was installed on site in late
    December 2005.

•   Construction and pre-commissioning of the topsides for the Cliff Head
    'A' platform has been successfully completed in Malaysia. Sail-away is
    expected later this week, with a scheduled arrival at the Cliff Head site in
    late January 2006.

•   Drilling of the planned five producing wells(1) and two water injection
    wells has commenced with the batch drilling of the 30 inch and 20 inch
    conductors completed in late December 2005.

•   The Ensco-67 drilling rig commenced(DEL: :DEL) batch development
    drilling of the 12 1/4 inch hole sections of the five oil production and two
    water injection wells in late December 2005. Drilling and completion
    activity is expected to finish in early April 2006.

•   On completion of drilling at Cliff Head, the Ensco-67 drilling rig will
    be utilised to drill exploration wells in nearby WA-286-P and TP/15
    exploration permits.

•   Construction of the onshore Arrowsmith Production Facility is now 85%
    complete and commissioning work has begun.

•   A Cliff Head oil sales contract was executed in December 2005 between BP
    and all the parties to the Joint Venture under which all of the crude oil
    production for the life of the field will be sold into BP's Kwinana
    Refinery.


Budget

When the Final Investment Decision was made in March 2005, an A$227 million
budget, including contingencies, was agreed. In late 2005, the Joint Venture
announced that it had expanded the scope of the project to include drilling an
additional well, at a cost of approximately A$12.5 million, to access and
produce an additional one million barrels of oil which took the budget to A$240
million.

Subsequently, weather, operational and equipment delays, mechanical revisions
and rising industry costs of materials and services have resulted in an increase
in overall costs of approximately A$25 million (ca 10%).

Commenting on the progress to date, ROC's CEO, Dr John Doran, stated that:

'We hate cost overruns. We derive no comfort from the fact that they are
becoming the norm in many parts of the resource sector. It's all very well
talking in the abstract about the rising cost of goods and services but it hits
home when you reali(INS:s:INS)(DEL:z:DEL)e that, for all practical purposes, the
increased Cliff Head budget will - on a post-tax basis - reduce ROC's net
present value by about A$3.8 million, equivalent to two cents per share.'
The Cliff Head Joint Venture comprises:(INS::INS)

+---------------------------------------------------+--------------+
|                                                   |    Equity    |
+---------------------------------------------------+--------------+
|Roc Oil (WA) Pty Ltd (Operator)                    |37.5%         |
+---------------------------------------------------+--------------+
|AWE Oil (Western Australia) Pty Ltd                |27.5%         |
+---------------------------------------------------+--------------+
|Wandoo Petroleum Pty Ltd                           |24.0%         |
+---------------------------------------------------+--------------+
|ARC Energy (PB) Limited                            |6.0%          |
+---------------------------------------------------+--------------+
|CIECO Exploration and Production (Australia) Pty   |5.0%          |
|Ltd                                                |              |
+---------------------------------------------------+--------------+


2.      DRILLING AND PORTFOLIO MANAGEMENT ACTIVITY

ROC actively manages its acreage position in order to high grade its portfolio.
As a result, different areas of operation attain different profiles at different
times; often reflecting the ebb and flow of the Company's drilling activities
and results. In this context, 2006 is scheduled to be a big drilling year for
ROC with up to 21 exploration and appraisal wells planned (Attachment 1)

Below is a summary of the main portfolio management and related events occurring
within ROC's areas of activity:

   • Australia

Apart from the Cliff Head Development Project referred to above, ROC's main near
term focus in Australia will be the Jacala-1 exploration well in the deep water
offshore Carnarvon Basin, which is due to commence in mid-February, and the
several exploration wells scheduled to be drilled in the offshore Perth Basin in
2Q 2006 (Attachment 1).

   • Angola

The ongoing interpretation of the seismic acquired in 2005 continues to provide
encouragement. Preliminary mapping of four of the more than half a dozen
potential target horizons indicates that most of the 33 wells drilled in the
1,075 sq km permit area prior to 1972 were either invalid structural tests or
not optimally located on the structures. Additionally two of three existing
wells within the permit that yielded hydrocarbon flows on drill string testing
were favourably located in respect to structural closure, with the other well
still to be determined.

There is every indication that onshore Cabinda will be a prime exploration focus
for ROC in 2006 and beyond. Currently, ROC is waiting on responses to
invitations to tender for seismic and drilling work in 2006.

   • Mauritania

After the Zoule-1 exploration well is finished, the rig will move to the Dore
location to drill the last well in the current series of wells offshore
Mauritania. Although the final results of Zoule-1 will not be known for certain
until logging operations have been completed, drill and
measurement-while-drilling data gathered to date do not give any cause for
optimism.

Subsequent to Dore-1 (DEL:- :DEL)and subject to all the usual industry vagaries
(DEL: -:DEL) exploration and appraisal drilling is expected to resume offshore
Mauritania in 2Q 2006 (Attachment 1).

The Chinguetti Oil Field Development continues on schedule and on revised budget
as previously reported with first production due 1Q 2006.

   • Equatorial Guinea

As Technical Manager of Blocks H15 and H16 in the deep water Rio Muni Basin
offshore Equatorial Guinea, ROC is actively talking to potential rig contractors
with regard to drilling the Aleta Cretaceous channel sand prospect in 3Q 2006
(Attachment 1).

   • North Sea

The Blane & Enoch Developments in the North Sea continue as previously reported
with first production scheduled for late 2006.

   • Onshore UK

The exploration focus of ROC's UK operated activities will be the Willows-1
exploration well which is due to spud in March(DEL:,:DEL) 2006 (Attachment 1).
The well will test a potentially significant, but high risk, gas prospect in
Yorkshire.

   • China

ROC is continuing discussions with the relevant government authorities in China
with a view to establishing whether or not the Wei 12-8 West Field, in Block 22/
12, can be developed commercially. At this stage of the process, neither the
timing nor the outcome of these discussions can be predicted with any
confidence.

ROC, as operator for the Block 22/12 Joint Venture in the Beibu Gulf, offshore
China expects to start drilling the Wei 6-12 South prospect in March(DEL:,:DEL)
2006 (Attachment 1).

Also in China, ROC's 50%-owned subsidiary China Oil Shale Development Company
Limited ('COSDECO'), the vehicle through which the Company monitors and reviews
oil shale opportunities in China, is expected to receive a small initial amount
of revenue as the result of contractual agreements between third parties which
have triggered a modest commission payment relating to the supply of equipment
and technology. ROC has decided not to participate in the first stage of the
Fushun Oil Shale Project ('FOSP') in Liaoning Province which it has been
discussing with the relevant government authorities. However, ROC remains open
to the review of subsequent opportunities in the oil shale business in China,
including Phase 2 of FOSP.

   • New Zealand

In order to maintain its executive and financial focus on those areas within its
portfolio with greatest perceived value, ROC has entered into discussions with a
third party regarding the possible divestment of its interest in the onshore
Taranaki Basin, New Zealand in return for a 2% over-riding royalty.

   • New Ventures

The Company continues to actively seek new ventures. However, the combination of
high vendor expectations in the current industry climate, a general lack of
compelling new opportunities and ROC's own inventory of current projects
inclines the Company to the view that during 2006 new venture deals will be few
and far between.

3. FINANCE

Loan Facility - US$60 million

ROC is close to completing a US$60 million Borrowing Base Loan Facility to be
applied to the funding of its 2006 development activities, in particular the
Cliff Head Oil Field and Chinguetti Oil Field Projects. A US$30 million Bridging
Facility is also being finalised to provide flexibility in funding options 
during 1Q 2006 while conditions precedent for the Borrowing Base Loan Facility 
are being completed.

Cash & Receivables

As of 31 December, 2006, ROC had approximately $68 million in cash
and receivables and no debt.

CORPORATE

A new ROC website is scheduled to go live at 7:00pm on Wednesday, 11 January
2006 (Sydney Time). The website address remains unchanged: www.rocoil.com.au

                                               For further information please
                                                                     contact:
                                                                Dr John Doran
Michelle Manook                                          Tel: [phone]
Corporate Affairs                                        Fax: [phone]
                                                 Email: [e-mail]:
                                                      Or visit ROC's website:
                                                            www.rocoil.com.au
                                                                Dr Kevin Hird
                                        General Manager Business Developments
                                                      Tel: [phone]
                                                      Fax: [phone]
                                                   Email: [e-mail]
                                                                             
                                                                 Nick Lambert
                                       Bell Potteringer Corporate & Financial
                                                     Tel: [phone]

To view the full text of this announcement, please paste the following link into
your web browser

http://www.asx.com.au//asxpdf/20060111/pdf/3v14gbshts1q4.pdf


                      This information is provided by RNS
            The company news service from the London Stock Exchange
              UPQUPG