Consequently ROC, 100% owner and operator of the field, has been advised that production from the Saltfleetby Gas Field, onshore UK, has been constrained to natural flows of approximately 5 mmscfd, a reduction of some 75%.

The operator of the Terminal is unable, at this early stage, to provide an accurate estimate of how long it will take to rectify the problem, though indications are that the gas compression facilities are unlikely to be re-commissioned until the second quarter of 2004.

Under the terms of ROC's Gas Sales Agreement with RWE Innogy plc, ROC has declared force majeure and volumes of gas delivered from Saltfleetby under this agreement have reduced accordingly.

ROC will not incur any commercial costs in relation to its Gas Sales Agreement with RWE Innogy and assuming two months of constrained gas production, ROC expects that its 2004 operating cash flow would be reduced by approximately $5 million; and

"For investors who are holding or buying ROC shares for its 2004 earnings, this is plain bad news. For those who are holding or buying ROC shares for the 2004 exploration drilling program and the medium and long term upside potential represented by the development of oilfields offshore Western Australia and Mauritania, this is an irritating piece of news that should not have any impact on their investment strategy," said ROC's chief executive officer, Dr John Doran.

Last year the Roc Oil successfully negotiated a 50% price increase for gas sold to Innogy over the price previously negotiated in 1999.