3rd Nov 2006 07:01
Soco International PLC03 November 2006 SOCO International plc ("SOCO" or "the Company") Vietnam TGX-1X Well Results 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) and the Democratic Republic of Congo(Kinshasa) with production operations in Yemen. After encountering reservoir sands, the first exploration well on the Te GiacXang ("TGX") structure on Prospect "K" will be plugged and abandoned as initialanalysis indicates that it was not drilled within structural closure. Fullanalysis of logs and other data will take several weeks to complete. Prospect "K" is a subtle closure to the west of the higher amplitude Te Giac Trang ("TGT")structure. The seismic over the area will be reprocessed and remapped to betterdefine the structure for a possible second well. Located in a previously untested portion of the Clastics fairway on Block 16-1,the TGX-1X well was drilled to a depth of 3,506 metres. Finding reservoir isthe main risk in drilling in this fairway, so the presence of reservoir inTGX-1X is a positive indicator for future success as drilling locations step outfrom the initial discovery. As has been the case on every well drilled in theClastics fairway by the Hoang Long Joint Operating Company ("HLJOC"), having oilsourced was not an issue. To date, the HLJOC has had a 50% success rate in exploration/appraisal wellsdrilled in the fairway on Block 16-1, with discoveries ranging from 9,340barrels of oil equivalent per day ("BOEPD") to 17,500 BOEPD and a declaration ofcommerciality is expected early in 2007 on the TGT field. Hoan Vu JOC isproceeding to development on the Ca Ngu Vang field on Block 9-2. The rig will finish logging this well and rig down as soon as weather permits tomove to the "H2" fault block on the TGT structure where it will spud the TGT-5Xwell. Another rig is under contract to begin drilling in the first or secondquarter of 2007. A letter of intent has been signed for a third rig andcontract negotiations have begun. The rig under contract and the rig expectedto be contracted are for one firm, plus one optional year of drilling. Ed Story, President and Chief Executive of SOCO, commented: "Although this well was not a commercial discovery, we did gain some positiveencouragement for further exploration in the 16-1 fairway as far as reservoirdevelopment and oil source are concerned, moving away from the initialdiscovery. Accordingly, our view on resource potential is not impacted, but thewell results reinforce the risk profile of exploratory drilling, even in anexcellent setting. We will further refine our seismic to improve trapdefinition as we carry out a continuous drilling programme for the next fourteenmonths." 3 November 2006 ENQUIRIES: SOCO International plcRoger Cagle Deputy Chief Executive and Tel: 020 7747 2000 Chief Financial Officer Pelham Public RelationsJames Henderson Tel: 020 7743 6673Archie Berens Tel: 020 7743 6679 Notes to editors: SOCO holds its interests in Vietnam, all in the Cuu Long Basin offshore, throughits 80% owned subsidiary SOCO Vietnam Limited (SOCO Vietnam) and through its100% ownership of OPECO, Inc.. SOCO Vietnam holds a 25% working interest inBlock 9-2, which is operated by the Hoan Vu Joint Operating Company ("HVJOC")andholds a 28.5% working interest in Block 16-1, which is operated by the HoangLong Joint Operating Company ("HLJOC"). OPECO, Inc. holds a 2% interest inBlock 16-1. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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