Roc Oil has slashed its oil reserves estimate by 20-25 per cent after a reservoir simulation at a key field, sending its shares down by over 30 per cent.
Roc Oil said that proved and probable (2P) reserves at its Basker-Manta-Gummy oil and gas field, off southeast Australia, is now projected between 3-5 million barrels, compared to an earlier estimate of 18 million barrels.
That downgrade has cut its group reserves by about 20-25 per cent and will force a major writedown in the value of the asset, Roc Oil said in a statement.
Shares in Roc Oil, operator of Basker-Manta-Gummy, dropped 30 per cent to close at 44 cents, after trading down as much 33 per cent earlier.
The firm, which also has producing assets in China, Africa and Britain, has struggled in recent months due to production pains at its main producing fields and a series of exploration disappointments.
Basker-Manta-Gummy, Roc's second-largest producing field, is currently producing around 6,000 barrels of oil a day (bpd) and Roc said it is expected to produce at an average rate of 5,000 (bpd) in 2010.
Reuters
