ROC

Roc Oil Company (ROC) have a reduced share price target of $3.80 (from $3.87) while their stock recommendation has been upgraded to Buy/High risk from Hold/High Risk from stocks analyst Citigroup Investment Research (CIR). A JV partner suggests that the Wei 6-12 South oil discovery could be soon declared commercial. If so, a Formal Investment decision could be made in 2H07, subject to full JV agreement. Roc Oil as the Operator is optimistic but taking a more conservative stand. Recent work by the JV seems to have suggested a reserve in the order of 40MMbblsof recoverable oil. A resource of this size could support production of 30,000Bopd (which is good). CNOCC Timetable Could Differ from Existing JV — this is the main risk to an early field development. The Chinese companies have a history of being slow and a portfolio of propositions that they will need to consider and compare to Wei 6-12 South. Angola Drilling 2Q07 — the first onshore well is still expected in 2Q07 (Roc 60%).