Roc Oil Company (ROC) has two more exploration wells scheduled to test pre-salt targets from Australian stockmarket analyst Macquarie Research Equities.

Roc Oil Company Ltd (ROC): Coco-1 flows minor oil from Angola pre salt reservoirs

Oil Discovered but Details are Lean — Onshore Cabinda well Coco-1 has recovered 26° API oil during testing. The size of the oil zone encountered and the quantity of oil recovered has not been released but unassisted flow to surface is encouraging. Discussions with Roc reveal that further Cabinda acreage is expected to be released by the Angolan Government before year end thus little incentive or requirement to reveal material information on Coco.

More on Coco-1 — Roc has indicated that the commercial potential of the discovery cannot be determined without further testing. We understand that the well has been cased and suspended awaiting re-entry. Roc has suggested that the offshore geology, where multi billion barrels of oil has been found, is the same as onshore. However, until a material oil flow is reported from Coco or other, it will be difficult for the market to assess the upside potential.

Massambala Appraisal to Start Shortly — up to 6 appraisal wells are about to commence on the earlier shallow heavy oil discovery made at Massambala. Following this program in 4Q08, the Explorer rig will then move to perform more detailed testing of the deeper oil discovery made at Coco-1. This testing is expected to take place within the next 6 months.

Another Two Pre Salt Wells to Follow — ROC has two more exploration wells scheduled to test pre-salt targets. The pre-salt is considered to be the most prospective section in the prolific offshore basin and consequently we maintain an exploration premium in our valuation. The more powerful Simmons rig will now move to the Sesamo-1 exploration well (net 60%), which could spud within two weeks.