17th Mar 2008 07:00
Soco International PLC17 March 2008 SOCO International plc ("SOCO" or "the Company") PRESIDENTIAL DECREE AND ADDITIONAL LICENCE IN THE DEMOCRATIC REPUBLIC OF CONGO (KINSHASA) The Company announces that its Production Sharing Contract ("PSC") over theNganzi Block, onshore the Democratic Republic of Congo (Kinshasa) ("DRC"), hasreceived a Presidential Decree thus passing the final regulatory hurdle beforebecoming effective 12 April 2008. The Company subsidiary, SOCO Exploration andProduction DRC Sprl ("SOCO E&P-DRC"), is the operator with an 85% participatinginterest in the Block. La Congolaise des Hydrocarbures ("Cohydro"), the stateowned oil company, holds the remaining 15% interest. The Nganzi Block, in which there had been little previous activity before theCompany signed the PSC in July 2006, comprises an area of approximately 800square kilometres on the eastern flank of the prolific coastal basin. TheCompany acquired a reconnaissance aeromagnetic and gravity survey across theBlock to define the basin geometry and structural trends and subsequentlyconducted a geochemical survey to evaluate the potential of the structural leadsidentified by the aero survey. The results of both surveys will be used to helplay out a 2D seismic grid and acquisition is expected to commence in the summerof 2008. In addition, SOCO E&P-DRC has entered into a new PSC with the Government of theDRC, Dominion Petroleum Limited ("Dominion") and Cohydro, wherein the partieshave acquired exclusive rights for hydrocarbon exploration on Block 5, locatedin the southern Albertine Graben in eastern DRC adjacent to the DRC/Ugandaborder. The Block has an area of 7,105 square kilometres, including part ofLake Edward. There were several significant oil discoveries made in 2006 and2007 in the central Albertine Graben. The SOCO subsidiary holds a 38.25% participating interest in the PSC withDominion, as operator, holding a 46.75% interest through its subsidiary DominionCongo Limited and Cohydro holding the remaining 15% interest. The PSC issubject to and becomes effective upon ratification by the President of the DRC. The first phase of the PSC has a 5 year span, during which SOCO and Dominionwill carry out geological and geophysical work, acquire at least 300km ofseismic data and drill two exploration wells. The PSC is renewable for twofurther five-year terms. Ed Story, President and Chief Executive of SOCO, commented: "Confirmation of our first PSC in the Democratic Republic of Congo is a veryimportant first step to commencing a full scale exploration programme in thecountry. Moreover, we are pleased to have the possibility to expand ourportfolio in this country where we see significant unexplored potential. Weview our collaboration with Dominion Petroleum as an effective way of extendingour asset base eastward in the country given their extensive involvement in theAlbertine Graben." 17 March 2008 ENQUIRIES: SOCO International plcRoger Cagle, Deputy Chief Executive and Chief Financial OfficerTel: 020 7747 2000 Pelham Public RelationsJames Henderson Tel: 020 7743 6673Alisdair Haythornthwaite Tel: 020 7743 6676 NOTES TO EDITORS: SOCO is an international oil and gas exploration and production company,headquartered in London, traded on the London Stock Exchange and a constituentof the FTSE 250 Index. The Company has interests in Vietnam, Yemen, Thailand,the Republic of Congo (Brazzaville), the Democratic Republic of Congo (Kinshasa)and Angola with production operations in Yemen. Its production operations inYemen are currently the subject of a conditional sale and purchase agreementannounced earlier this year. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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