Roc Oil is on track with the development of its Cliff Head offshore oil field, on Western Australia's mid-west coast despite a budget blow out.
The overall budget on the project has increased to $265 million due to an additional well being drilled to allow access to additional reserves of one million barrels.
In addition, cost increases caused by operational and weather delays, mechanical revisions along with rising costs of materials also contributed to the budget pressures.
Notwithstanding, the company said it remains on schedule for first production from Cliff Head during the current quarter.
Meanwhile Roc Oil's oil production rose 13 per cent in the December quarter while sales revenue slipped marginally.
Oil output from the company's Australian and United Kingdom operations increased to 3,625 barrels, from 3,195 barrels produced in the September quarter.
Sales revenue softened by two per cent quarter on quarter to $224,000 for the final quarter of 2005.
At the end of the calendar year, Roc Oil had $66 million in cash and was debt free, after successfully raising $75.9 million earlier this month to fund exploration in offshore Angola.
