BLR Black Rock Oil

RNS Number:4983G
Black Rock Oil & Gas PLC
6 July 2001


      Acquisition of 100% interest in PEL 425, New South Wales, Australia

Black Rock Oil & Gas PLC (the "Company") is pleased to announce that all of
the conditions of the sale & purchase agreement with Otto Oil Pty Ltd (an
Australian private company) ("Otto") to buy a 100% interest in PEL 425, in the
Darling Basin, New South Wales, Australia have today been satisfied.  The
consideration paid to Otto was:

1.  A cash payment of A$22,500 representing re-imbursement of
    past costs of A$7,500 and refund of security deposit of A$15,000; and

2.  The issue to Otto of 725,000 ordinary shares of 0.5p par
    value in the Company, issued at 5.5p per ordinary share (a premium of 5p per
    ordinary share).

Further consideration may be payable, in the form of a success bonus of
A$250,000 payable in cash or ordinary shares of 0.5p each (at the discretion
of the Company) in the event that the Company lodges an application for a
Retention or Production Licence or on the basis of a commercial hydrocarbon
discovery is made in PEL 425. If the Company elects to pay the success bonus
in ordinary shares, the number of ordinary shares shall be calculated by
reference to the mid market closing price of the ordinary shares on the date
of announcement by the Company that an application for a Retention or
Production Licence over PEL 425 has been lodged or a commercial hydrocarbon
discovery has been made in PEL 425.

PEL 425 is located in the Bancannia Trough, part of the Darling Basin of
Western New South Wales, an area where minor oil and gas shows have been
reported both at surface and in wells.  The licence is under-explored with
only three exploration wells drilled within the licence area of 10,425 square
kilometres (approximately 2.57 million acres).  A limited seismic data base
plus a grid of gravity and magnetic data are available.  A number of large
structural leads have been mapped by Otto using reprocessed seismic data.  The
seismic data indicate that of the three wells drilled to date in the licence,
two were drilled off structure and one some hundreds of metres below the crest
of a structure.  The wells, drilled in the 1960's by Planet Exploration Co Pty
Ltd and NSW Oil and Gas NL, are therefore not considered to be valid tests of
the basin's hydrocarbon potential.

The Black Rock Group believe that this large block is an exciting area in
which to apply the FracWormer 3-D processing technology, to the gravity and
magnetic data sets.  The Black Rock Group has already used the technique in
licences it operates in the Canning Basin of Western Australia and the Weald
Basin of Southern England, and believes it could prove up drillable prospects
in PEL 425.  If this new processing is successful and a significant prospect
or prospects are located, the Black Rock Group intends to bring in a partner
for the drilling phase on the new licence.

Black Rock Oil & Gas PLC is the holding company of the Black Rock Group which
since 1995 has pursued the exploration for both conventional and
non-conventional oil and gas accumulations using both established and new
technologies and is pioneering the use of new 3-D processed field data,
particularly gravity and magnetic data in oil and gas exploration.  The group
currently holds petroleum exploration interests in the United Kingdom, the
Middle East and Australia through 7 licences.

David Steinepreis
Chairman


Contacts:         Julian Riddick, London based Director   Tel:  0208 741 2011
                                                          Fax:  0208 741 1101

                  Australia:
                  David Steinepreis, Chairman             Tel:  +61 8 94812407
                  John Scott, Managing Director           Fax:  +61 8 94812690
                  Email  blkrock@highway1.com.au
                  Website: www.blackrockpetroleum.com.au

Nominated Adviser to Black Rock
Oil & Gas PLC:    Corporate Synergy plc                   Tel: 020 7626 2244

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