Update: Equatorial Guinea

Roc Oil Company Limited
27 June 2007


27 June 2007


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

                       ACTIVITY UPDATE: EQUATORIAL GUINEA

ROC advises that a dispute has arisen between Pioneer Natural Resources
Equatorial Guinea Limited ('Pioneer'), a wholly-owned subsidiary of Dallas-based
Pioneer Natural Resources Limited and its co-venturers, including Roc Oil
(Equatorial Guinea) Company ('ROC EG'), with regard to Blocks H15 and H16
(collectively 'Block H'), in the deep water Rio Muni Basin, offshore Equatorial
Guinea.

The essence of the dispute relates to Farmin Agreements which the non-Pioneer
participants of the Block H Joint Venture (ROC EG, Atlas Petroleum International
Limited ('Atlas') and Osborne Resources Limited ('Osborne')) entered into in
2004 with Pioneer by which that company gained equity in the Block H Production
Sharing Contract.

At the time of the farmins, Pioneer committed to pay ROC EG's share of the costs
of two wells to be drilled in Block H in consideration for which Pioneer earned
a 20% interest in the Block from ROC EG and ROC EG retained a 15% interest which
was to be free carried by Pioneer through the two wells. Immediately after it
entered into the Farmin Agreement with ROC, Pioneer also entered into broadly
similar farmin arrangements with the other Block H co-venturers. The first of
the two farmin wells, H-1 (Bravo), was drilled in June 2004 and Pioneer thereby
discharged its responsibility in that regard. However, ROC EG maintains that
Pioneer has breached its obligations with regard to the second farmin well.

In August 2005, all the participants in the Block H Joint Venture, including
Pioneer, resolved to drill the H-2 (Aleta) well in satisfaction of the Joint
Venture's minimum work obligations for the first renewal of the exploration
period under the Production Sharing Contract. That well would also have
discharged Pioneer's obligations to ROC EG under the Farmin Agreement. The
Government of the Republic of Equatorial Guinea subsequently approved the
drilling of the H-2 (Aleta) well and, until early this year, all participants in
the Block H Joint Venture were proceeding on the basis that the well would be
drilled, although the precise timing of the well was subject to rig
availability.


Earlier this year, Pioneer indicated that it did not wish to proceed with the
drilling of the H-2 (Aleta) well and did not consider itself bound to fund
either its own share of the costs of drilling the well or the carried share of
the other co-venturers' interests, including ROC EG. Pioneer further indicated
to ROC that there were two reasons for its change of view: the enactment last
year of a new Hydrocarbons Law by the Republic of Equatorial Guinea and
escalating costs of drilling the well. ROC's view is that Pioneer is not
entitled to take the position it has.

In order to seek clarification of certain procedural matters under the terms of
the Joint Venture Agreement which governs Joint Venture operations, Pioneer
commenced arbitration actions against ROC EG, Atlas and Osborne, on 14 June
2007. Subsequently, ROC EG notified Pioneer of claims for breach of Pioneer's
contractual obligations under the Farmin Agreement between ROC EG and Pioneer
and further advised Pioneer of its intention to pursue its claims through
arbitration. ROC understands that the other non-Pioneer co-venturers are also
intending to move to arbitration with Pioneer. Until these disputes are
resolved, it is unlikely that the drilling of the Aleta-1 well will proceed.

Commenting on the arbitration proceedings, ROC's Chief Executive Officer, Dr
John Doran, stated that:

'Although matters that go to arbitration are often perceived to be of an
extremely complex nature, the reality of the Block H arbitration situation is
really quite simple - Pioneer wants to cut and run from its farmin commitment
and ROC doesn't believe that it is entitled to do that. Nothing more. Nothing
less. That simple.'



Damian Fisher
General Manager
External Affairs & Investor Relations

                                         For further information please contact:
                                                                Dr John Doran on
                                                            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]
                                                                                
                                                                    Nick Lambert
                                            Bell Pottinger Corporate & Financial
                                                       Tel:  [phone]
                                                                                


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