2nd Quarter Report

Roc Oil Company Limited
31 July 2006


                             ROC OIL COMPANY LIMITED
                              (ABN 32 075 965 856)

                             REPORT TO SHAREHOLDERS
                 Activities for the Quarter Ended 30 June 2006

                                  CEO COMMENTS

It was a big Quarter for ROC. The Company agreed to a US$260 million acquisition
of producing reserves, with upside, offshore China and commenced production from
the ROC-operated Cliff Head Oil Field, offshore Western Australia.

During the Quarter, ROC production, which had been close to zero in February
2006, went from 1,700 BOPD to 4,300 BOPD and by Quarter-end was set to rise to
more than 12,000 BOPD during 3Q 2006.

A potentially significant ROC-operated oil discovery offshore China and the
start-up of development drilling at the Blane Oil Field in the North Sea, were
other Quarter highlights. Lowlights included rising development costs a
ubiquitous blight on the local and global industry; and the underperformance of
the Chinguetti Oil Field, offshore Mauritania.

Perhaps, the main thing for shareholders to take from ROC's activities during
the Quarter is that the Company's strategy is working well. Diversification of
its development and production portfolio, a consistent exploration effort and a
steadfast focus on international operations are about to catapult ROC into a
different league.

                                   HIGHLIGHTS
PRODUCTION & SALES

•   Total production of 250,107 BBLS (2,748 BOPD), up 249% on the previous
    Quarter.

•   Total sales revenue of $16.752 million, up 226% on the previous Quarter.

•   Production from the Cliff Head Oil Field (ROC: 37.5% and Operator)
    commenced 1 May, less than 14 months after project sanction. Production from
    three of six scheduled production wells averaged 3,704 BOPD for the Quarter.
    At Quarter-end production was 8,500 BOPD from three wells.

•   Production from the Chinguetti Oil Field (ROC: 3.25%) averaged
    approximately 41,600 BOPD for the Quarter which was at the low end of
    expectations following reservoir and facility problems. At Quarter-end
    production was about 34,000 BOPD.

DEVELOPMENT

•   Cliff Head Development Project achieved a number of milestones including
    the completion of most of the development drilling activities and the
    commissioning work at the Arrowsmith Stabilisation Plant. Due to delays
    related to drilling and completion of wells, and increased construction and
    commissioning costs the overall budget increased by approximately 15% from
    the previously reported $285 million to $327 million (ROC net: $123
    million).

•   Development drilling commenced at the Blane Oil Field in the North Sea
    (ROC: 12.5%) and was continuing at Quarter-end. First oil production is
    scheduled for 2Q 2007. Current development cost estimate is £206 million/
    $515 million (ROC net: $64 million) 25% above the previously stated budget
    of £165 million/$413 million, largely due to general increase in industry
    costs and the impact of pipelay delay.

•   Development activities at the Enoch Oil and Gas Field, in the North Sea
    (ROC: 12.0%) continued through the Quarter. First oil production is now
    expected to commence 1Q 2007 compared with the previously reported 4Q 2006.
    Current development cost estimate is £93 million/$233 million (ROC net: $28
    million), up 24% on the previously stated budget of £75 million/$188
    million, primarily due to a general increase in industry costs and to an
    extended project execution timeframe, both resulting from the current high
    demand for offshore contracting resources.

EXPLORATION/APPRAISAL

•   In Block 22/12, Beibu Gulf, offshore China, the Wei 6-12S-1 exploration
    well is regarded as a potentially significant discovery after drilling
    approximately 90 metres of net hydrocarbon pay, mainly oil. Testing of three
    separate zones resulted in a total collective stabilised flow rate of 5,750
    BOPD. An appraisal sidetrack Wei 6-12S-1a commenced drilling on 13 June.

CORPORATE

•   On 26 June, ROC agreed to acquire a 24.5% operated interest in the Zhao
    Dong Block ('Block'), Bohai Bay, offshore China for US$260 million. At
    Quarter-end, the Block, which has upside potential, was producing about
    30,000 BOPD from two fields (ROC designated interest: 7,300 BOPD). Gross
    proved and probable remaining reserves for the field approximate to 61 MMBO
    (ROC designated interest: 15 MMBO).

FINANCIAL

•   At Quarter-end ROC had approximately $45.3 million in cash and a $35 million
    debt relating to a deposit for the Zhao Dong acquisition.

•   During the Quarter, ROC acquired an additional 380,000 BBLS put options
    at a Brent oil price of US$67/BBL and crude oil prices swaps for 1,200,000
    BBLS at a weighted average Brent oil price of US$71.43/BBL covering the one
    year period to 30 June 2007.

POST QUARTER EVENTS

•   Development drilling operations at Cliff Head were completed on 16 July
    with four of the six wells producing an average of 12,500 BOPD. In addition,
    the field achieved a significant milestone when cumulative oil production
    exceeded half a million barrels.

•   Appraisal of the Wei 6-12S-1 continued with the first sidetrack well,
    Wei 6-12S-1a, reaching a Total Depth of 2,530 mBRT. Initial analysis
    indicated that the five cores cut display similar reservoir quality to the
    discovery well. A second sidetrack well, Wei 6-12S-1b, commenced drilling on
    13 July. The well was designed to intersect all the reservoir intervals seen
    in the upper part of the original discovery well downdip from that well. On
    31 July, the second sidetrack well had reached a revised Total Depth of
    2,950 mBRT and logging was underway. Preliminary appraisal results appear to
    range from as expected to somewhat encouraging.

•   Moodah-1 exploration well in TP/15, Perth Basin, offshore Western
    Australia reached a Total depth of 1,450 mBRT without encountering
    significant hydrocarbons.

•   ROC entered into further Brent crude oil price swaps for 1,017,000 BBLS
    for the period 1 July 2007 to 30 June 2008 at a weighted average price
    US$73.62/BBL. As a result of this and previously announced hedging
    programmes for the period July 2006 to 30 June 2008, ROC has hedged via
    swaps approximately 32% of its forecast company-wide 2P production for that
    period including Zhao Dong.

•   Government authorities in China extended the term of the Production
    Sharing Contract for Block 22/12, Beibu Gulf, offshore China for a further
    two years.

For a complete copy of this report, please see ROC's website:
http://www.rocoil.com.au/Public/Announcement/2006/Report_for_Quarter_Ended_30_
June_2006.aspx

FURTHER INFORMATION

For further information please contact ROC's Chief Executive Officer, Dr John 
Doran on:
Phone:     [phone]
Facsimile: [phone]
Email:     [e-mail]   Web Site:  www.rocoil.com.au
Address:   Level 14, 1 Market Street, Sydney, NSW 2000, Australia.


Dr Kevin Hird
General Manager Business Development
Tel:  [phone]
Fax:  [phone]
Email:  [e-mail]

Nick Lambert
Bell Pottinger Corporate & Financial
Tel:  [phone]



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