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Roc warns of output dip

Australian player Roc Oil has warned that its output figures for the year will be at the lower end of its guidance range, after a lacklustre production performance in the second quarter.

Roc said based on year-to-date results, production for the calendar year is expected to be at the low end of the 10,000 to 12,000 barrel of oil per day range.

The company delivered a lacklustre production performance in the three months to 30 June, with output of 789,543 barrels of oil equivalent, compared to 782,544 boe in the first quarter of 2007.

First production from the Enoch field in the North Sea and a 9% increase in output from the Cliff Head operation off the coast of Western Australia compensated for sharp declines at other operations.

"Enoch started production and achieved target rates soon afterwards," Roc chief executive John Doran said.

However, strong sales helped offset second quarter production, with Roc Oil reporting total sales revenue of A$60.4 million (US$51.4 million) in the second quarter, compared with A$38.9 million recorded in the first quarter.

On the exploration front, Roc Oil said a programme off the coast of Western Australia resulted in three discoveries, while the company has started drilling on its permits in Angola.

"A three well exploration programme in the offshore Perth basin resulted in three discoveries, two of which may prove to be commercial, subject to further evaluation," Doran said.

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