4th Quarter Activities Report

Roc Oil Company Limited
31 January 2007


                             ROC OIL COMPANY LIMITED
                              (ABN 32 075 965 856)

                             REPORT TO SHAREHOLDERS
               Activities for the Quarter Ended 31 December 2006

                                  CEO COMMENTS

ROC's quarterly sales volume hit the one million barrel mark for the first time.
This represents reasonable progress compared to 4Q 2005 when the sales volume
was about 3,000 barrels. Other quarterly records include $66 million sales
revenue and 0.85 MMBO production. Gross oil production from the ROC-operated
Cliff Head Oil Field, offshore Western Australia, hit the two million barrel
mark, just eight months after production start-up.

In the above context, ROC's upside share price potential during 2007 could be
viewed as being tied to oil price movements. To ensure that the share price is
not simply a captive of the oil price, the Company's 2007 drilling and new
venture programmes have been designed on a scale that would allow the share
price to disconnect from oil price trends in the event of successful exploration
/appraisal drilling and/or new asset acquisition. If the Company achieves a
measure of success on these fronts then, regardless of whether oil prices
stabilise, weaken or strengthen, the share price would have the potential to
jump ahead of the oil price trend line.

This sequential growth strategy means that the big growth year which has just
gone will be followed immediately by another with equal growth potential.

                                 KEY ACTIVITIES

1.  REVENUE & PRODUCTION

   • Total working interest oil production of 847, 087 BBLS (9,207 BOPD); up
     3% compared to 825,039 BBLS (8,968 BOPD) in the previous Quarter

   • Total sales revenue of $66.1 million; up 4% compared to $63.4 million in
     the previous Quarter.

   • Total sales volume of 1,048,282 BBLS; up 33% compared to 788,749 BBLS in
     the previous Quarter.

1.1  Cliff Head Oil Field, WA-31-L, Offshore Western Australia (ROC: 37.5% & 
     Operator)

Gross oil production rates of approximately 8,700 BOPD (ROC WI: 3,261 BOPD) for
the Quarter with a high of 15,500 BOPD. Intermittent production constraints
related to separate issues including: trucking capacity; electrical malfunction
at the offshore platform; and minor mechanical downtime at the onshore plant. On
31 December, the field produced its two millionth barrel of oil, eight months
after production start-up

1.2  Zhao Dong C & D Fields, Bohai Bay, Offshore China (ROC: 24.5% & Operator)

Following the imposition of a 22,000 BOPD production constraint announced in
October 2006, gross oil production was approximately 21,100 BOPD (ROC WI: 5,180
BOPD) with minor downtime experienced due to winter weather conditions. See
Section 6: Post Quarter Events

1.3  Chinguetti Oil and Gas Field, PSC Area B, Offshore Mauritania (ROC: 3.25%)

Gross oil production averaged approximately 23,400 BOPD (ROC WI: 760 BOPD). On 1
November, ROC announced a downgrade of initial gross 2P reserves to 52.4 MMB0.
On 16 November, the Operator, Woodside, issued an interim gross 2P reserve
estimate of 53.0 MMBO. The CH-18 production infill well commenced drilling on 29
December. See Section 6: Post Quarter Events

2.   DEVELOPMENT

2.1  Blane Oil Field, North Sea (ROC: 12.5%)

Development drilling and completion of the second production well was
accomplished on 13 October. Pipe-lay work for the flow line to the Ula platform
commenced in early October and was completed by November. The Operator advises
that first oil production is still expected during 2Q 2007. For internal
planning purposes ROC is assuming first oil late in that period.

2.2  Enoch Oil and Gas Field, North Sea (ROC: 12.0%)

Production testing of the single development well was completed 21 October with
the well recording several flow rates on various choke sizes generally in line
with expectations. Pipeline post-lay work was also completed during the Quarter.
The Operator advises that first oil production is now expected during 2Q 2007.
For internal planning purposes ROC is assuming first oil early in that period.
2.3 Zhao Dong C4 Oil Field, Bohai Bay, Offshore China (ROC: 11.58% unitised &
Operator)

On 31 December, PetroChina advised ROC that it had been notified by the National
Development and Reform Commission of the Chinese Government's approval to
proceed with the C4 Development Plan. The next step is the approval of the
Development Budget by the Joint Management Committee.

3.  EXPLORATION AND APPRAISAL

3.1  Perth Basin, Offshore Western Australia (ROC: 7.5% - 50% & Generally
     Operator)

Activity focused on contracting a suitable rig for 1H 2007 to drill the
Frankland-1 and Perseverance-1 exploration wells in WA-286-P and WA-325-P
respectively.

3.2  Wei 6-12 South Oil Field, Block 22/12, Beibu Gulf, Offshore China
     (ROC: 40% & Operator)

Appraisal studies of the Wei 6-12 South and Wei 6-12 oil fields continued during
the Quarter. See Section 6: Post Quarter Events

3.3  Mauritania (ROC: 2.0 - 5.0%)

On 8 December the Dana-operated Aigrette-1 exploration well in Block 7 (ROC:
4.95%) was drilled to a Total Depth of 5,152 metres and plugged and abandoned
after encountering hydrocarbon-bearing sandstones within the Cretaceous target
zone. Whilst the result is technically encouraging, the discovery is likely to
be sub-commercial. The well completed the 2006 Mauritanian exploration drilling
programme.

3.4  Equatorial Guinea (ROC: 18.75% & Technical Manager)

Activity focused on finalising contract negotiations for the Aban Abraham deep
water drilling vessel, currently being upgraded in Singapore, with a view to
drilling the Aleta Prospect in 2H 2007.

3.5  Angola (ROC: 60% & Operator)

A two-year drilling rig contract was signed with Simmons Drilling Overseas
Limited for the Simmons 80 rig to commence drilling in the onshore Cabinda South
Block by May 2007. The rig is currently being upgraded in Dubai.

Upgrade work commenced in the UK on the ROC-owned Explorer rig with a view to
shipping it to Cabinda during 1Q 2007 for start-up of drilling during April/May
2007.

On 11 December, the Cabinda South Joint Venture formally approved the 2007 Work
Programme and Budget which includes three firm exploration wells. The total
budget approximates to US$54 million of which approximately US$43 million
relates to drilling activity.

The 217 km 2D seismic programme was completed in the Cabinda South Block,
onshore Angola, marking the end of an 18-month seismic acquisition phase which
acquired a total of 416 sq km of 3D and 722 km of 2D seismic. This work effort
represents in excess of 75,000 man-days on ground in Cabinda.

4.  CORPORATE

On 2 November, ROC announced a fully underwritten 3 for 8 Renounceable Rights Is
sue, at $2.70 per share, which raised approximately $219 million. The purpose of
the Rights Issue was to reduce debt incurred in relation to the acquisition of
the Zhao Dong asset and to provide greater financial flexibility for the Company
as it continues to build shareholder value. Approximately 91% of eligible
shareholders subscribed to the issue.

The final number of shares allotted on 8 December under the terms of the Rights
Issue was 81,226,213, taking ROC's total issued capital to 297,822,206 fully
paid ordinary shares.

As at 31 December, ROC had approximately 18,450 shareholders, up 44% compared to
1 July 2006

5.   FINANCIAL

Approximately $200 million of the funds raised in the Rights Issue was used to
reduce corporate debt so that, at Quarter-end ROC had approximately $60.6
million in cash and $173.7 million of debt.

5.1  Production
+----------------------------------+-------------+-------------+-------------+
|                                  |   4Q 2006   |   3Q 2006   |   Change    |
|                                  |    BBLS     |    BBLS     |      %      |
+----------------------------------+-------------+-------------+-------------+
|Australia - Cliff Head            |      300,030|      321,721|     (7)     |
+----------------------------------+-------------+-------------+-------------+
|China - Zhao Dong C & D Fields    |      476,514|      410,225|     16      |
+----------------------------------+-------------+-------------+-------------+
|Mauritania - Chinguetti           |       69,895|       92,687|    (25)     |
+----------------------------------+-------------+-------------+-------------+
|Other                             |          648|          406|     60%     |
+----------------------------------+-------------+-------------+-------------+
|Total Production                  |      847,087|      825,039|     3%      |
+----------------------------------+-------------+-------------+-------------+

Production quoted is ROC's working interest share of total production. ROC's net
entitlement production for the period was 790,344 BBLS (3Q: 775,064 bbls)

5.2  Sales
+--------------------------+----------------------+------------------------+
|                          |       4Q 2006        |        3Q 2006         |
+--------------------------+-----------+----------+-----------+------------+
|                          |   BBLS    |  $'000   |   BBLS    |   $'000    |
+--------------------------+-----------+----------+-----------+------------+
|Australia - Cliff Head    |    300,982|    21,401|    320,604|      28,789|
+--------------------------+-----------+----------+-----------+------------+
|China - Zhao Dong C & D   |    620,191|    36,334|    405,036|      29,334|
|Fields                    |           |          |           |            |
+--------------------------+-----------+----------+-----------+------------+
|Mauritania - Chinguetti   |    126,483|     8,366|     62,740|       5,268|
+--------------------------+-----------+----------+-----------+------------+
|Other                     |        626|        45|        369|          34|
+--------------------------+-----------+----------+-----------+------------+
|Total Sales               |  1,048,282|    66,146|    788,749|      63,425|
+--------------------------+-----------+----------+-----------+------------+

ROC's net entitlement crude stock position decreased by 258,000 BBLS during the
period and at the end of 4Q 2006 ROC was in a net overlift position of 102,000
BBLS.

5.3   Expenditure
+----------------------------------+--------------+--------------+
|                                  |   4Q 2006    |   3Q 2006    |
|                                  |    $'000     |    $'000     |
+----------------------------------+--------------+--------------+
|Exploration                       |              |              |
+----------------------------------+--------------+--------------+
|Angola                            |        10,511|        14,882|
+----------------------------------+--------------+--------------+
|China                             |            11|         4,306|
+----------------------------------+--------------+--------------+
|Mauritania                        |         3,885|         4,643|
+----------------------------------+--------------+--------------+
|Australia                         |           182|         1,863|
+----------------------------------+--------------+--------------+
|UK                                |            58|           694|
+----------------------------------+--------------+--------------+
|Equatorial Guinea                 |            55|            51|
+----------------------------------+--------------+--------------+
|Other                             |           949|           558|
+----------------------------------+--------------+--------------+
|Total Exploration                 |        15,651|        26,997|
+----------------------------------+--------------+--------------+
|Development                       |              |              |
+----------------------------------+--------------+--------------+
|Cliff Head                        |           736|         9,926|
+----------------------------------+--------------+--------------+
|Zhao Dong                         |         (531)|         4,155|
+----------------------------------+--------------+--------------+
|Blane                             |        16,772|        13,723|
+----------------------------------+--------------+--------------+
|Enoch                             |         5,841|         5,239|
+----------------------------------+--------------+--------------+
|Chinguetti                        |         1,664|           545|
+----------------------------------+--------------+--------------+
|Total Development                 |        24,482|        33,588|
+----------------------------------+--------------+--------------+
|Total Exploration & Development   |        40,133|        60,585|
+----------------------------------+--------------+--------------+

5.4  Hedging

No additional oil price hedging was undertaken in the current Quarter. The
following hedges were settled during the period for which ROC received revenue
of $3 million.

+--------------------------+----------+----------+----------+----------+----------+
|                          |   BBLS   | Weighted |   BBLS   | Weighted |TOTAL BBLS|
|                          |          | Average  |          | Average  |          |
|                          |          |  Brent   |          |  Brent   |          |
|                          |          |Price USD/|          |  Price   |          |
|                          |          |   BBL    |          | USD/BBL  |          |
+--------------------------+----------+----------+----------+----------+----------+
|Oil Price Swaps           |   141,000|     49.58|   300,000|     72.47|   441,000|
+--------------------------+----------+----------+----------+----------+----------+
|Oil Price Puts            |    60,000|     50.00|   140,000|     67.00|   200,000|
+--------------------------+----------+----------+----------+----------+----------+

6.  POST QUARTER EVENTS

6.1  On 9 January, ROC was advised that oil production at the Zhao Dong C & D 
     oil fields, Bohai Bay, offshore China could be increased subject to an 
     overall fluid rate constraint. As a result daily production has risen from 
     the curtailed level of 22,000 BOPD to approximately 24,000 BOPD, subject to
     normal winter weather constraints.

6.2  As of 14 January, the CH-18 production well at the Chinguetti Oil Field,
     offshore Mauritania, had been drilled to a Total Depth of approximately 
     2,883 metres after encountering a gross oil pay interval of approximately 
     213 metres and a net oil pay of 35 metres which is in line with pre-drill 
     expectations. The well is scheduled for completion in mid-February.

6.3  On 30 January, ROC announced that it had completed an Appraisal Report
     relating to the Wei 6-12 South and Wei 6-12 oil fields in Block 22/12 in 
     the Beibu Gulf, offshore China (ROC 40%(1) & Operator). The most likely oil
     in-place for the two fields is 56 MMBO. When the results of the Report, 
     which focused only on the two known fields, are combined with the current 
     understanding of the two adjacent, undrilled prospects, the most likely oil
     in-place for the four features in the Wei South Complex is approximately 
     83 MMBOIP. The upside oil in-place for these four features is 108 MMBOIP.

     The most likely recoverable oil estimate for the four features is 29 MMBO, 
     of which 19 MMBO relates to the two known fields. The upside potential of 
     the four features is 37 MMBO of which 27 MMBO relates to the two known 
     fields. On this basis, the Joint Venture is moving towards Front End 
     Engineering and Design ('FEED') which is scheduled to begin in 2Q 2007 and
     a Final Investment Decision which is expected in 2H 2007.

6.4  Formal consent was received relating to the relinquishment of the WA-349-P
     permit in the Perth Basin, effective 5 January 2007.

7.  FURTHER INFORMATION

For further information please contact ROC's Chief Executive Officer, Dr John
Doran on:

Phone: [phone] Email: [e-mail]
Facsimile: [phone] Web Site: www.rocoil.com.au
Address: Level 14, 1 Market Street, Sydney, NSW 2000, Australia.

+-------------+---------------------------------------------------------------+
|definitions  |                                                               |
+-------------+---------------------------------------------------------------+
|BBL(S)       |means barrel(s)                                                |
+-------------+---------------------------------------------------------------+
|BCF          |means billion cubic feet                                       |
+-------------+---------------------------------------------------------------+
|BOE          |means barrels of oil equivalent                                |
+-------------+---------------------------------------------------------------+
|BOPD         |means barrels of oil per day                                   |
+-------------+---------------------------------------------------------------+
|BOEPD        |means barrels of oil equivalent per day                        |
+-------------+---------------------------------------------------------------+
|BCPD         |means barrels of condensate per day                            |
+-------------+---------------------------------------------------------------+
|GWC          |means gas-water contact                                        |
+-------------+---------------------------------------------------------------+
|MCF          |means thousand cubic feet                                      |
+-------------+---------------------------------------------------------------+
|m BRT        |means metres below rotary table                                |
+-------------+---------------------------------------------------------------+
|MMSCF        |means million standard cubic feet                              |
+-------------+---------------------------------------------------------------+
|MMSCF/D      |means million standard cubic feet per day                      |
+-------------+---------------------------------------------------------------+
|MMBO         |means million barrels of oil                                   |
+-------------+---------------------------------------------------------------+
|MMBBLS       |means million barrels                                          |
+-------------+---------------------------------------------------------------+
|MMBOE        |means million barrels of oil equivalent                        |
+-------------+---------------------------------------------------------------+
|MMBOIP       |means million barrels of oil in place                          |
+-------------+---------------------------------------------------------------+
|NGL          |means natural gas liquids                                      |
+-------------+---------------------------------------------------------------+
|OWC          |means oil-water contact                                        |
+-------------+---------------------------------------------------------------+
|PSC          |means Production Sharing Contract                              |
+-------------+---------------------------------------------------------------+
|Quarter      |means the period 1 October 2006 to 31 December 2006            |
+-------------+---------------------------------------------------------------+
|ROC          |means Roc Oil Company Limited and includes, where the context  |
|             |requires, its subsidiaries                                     |
+-------------+---------------------------------------------------------------+
|SCF          |means standard cubic feet                                      |
+-------------+---------------------------------------------------------------+
|TCF          |means trillion cubic feet                                      |
+-------------+---------------------------------------------------------------+
|US$          |means US dollars                                               |
+-------------+---------------------------------------------------------------+
|$            |means Australian dollars                                       |
+-------------+---------------------------------------------------------------+
|WI           |means working interest entitlement                             |
+-------------+---------------------------------------------------------------+


--------------------------
(1) Pre Government back-in for 51%



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