showdown looms, page-15

Dan and Auto, interestingly Roc is the company researched in "Research Corner" in my CommSec Update email last night.
Also of interest is that CommSec analysts maintain an "OVERWEIGHT recommendation" and view the Chinese assets as being core and say they will provide material upside potential...

"ROC's Chinese developments are core and in our view offer material valuation upside potential through exploration and near-field tie-ins"

RESEARCH CORNER – ROC

ROC Oil (ROC)1
Price target: $0.60
Share price2: $0.50

ROC is an Australian oil and gas explorer, developer and producer. It has interests in oil fields in WA (Cliff Head), China (Beibu Gulf and Zhao Dong) and the UK (~12% interest in Blane and Enoch in the North Sea).
ROC announced 1Q14 production of 0.714mmboe, down 12% qoq, due largely to natural decline at Beibu and Zhao Dong, and production downtime at Blane. Revenue of USD75.4m was up 9% qoq on higher sales volumes (up 9% qoq) as a result of inventory movements.

Following quarter end, ROC acquired a 50% interest in the PETRONAS-owned production sharing contract (PSC) offshore Malaysia, including three fields – D35, D21 and J4. The PSC is to run from 2014 to 2034, with PETRONAS remaining the operator and ROC acting as project development manager.

ROC and Horizon Oil (HZN) have proposed a merger via scheme of arrangement whereby HZN shareholders would receive 0.724 ROC shares for each HZN share held. The combined entity is estimated to have a pro-forma market cap of ~$800m and would be ~58% owned by existing HZN shareholders, with ROC shareholders owning the remaining 42%.

We maintain our Overweight recommendation and $0.60ps 12-month price target. ROC's Chinese developments are core and in our view offer material valuation upside potential through exploration and near-field tie-ins.
With its expansion into Malaysia, ROC has also now been able to leverage off its strengths as an operator with further growth potential. At this stage, we view completion of the proposed merger with HZN as a likely outcome, absent any superior third-party offers. Key risks for ROC relate to commodity prices, exploration and development risk, and completion of the proposed merger with HZN.