1st Dec 2005 07:00
Soco International PLC01 December 2005 SOCO International plc ("SOCO" or "the Company") HIGH PRESSURE HYDROCARBON ENCOUNTER/SUSPENSION OF CNV-4X SOCO is an international oil and gas exploration and production company,headquartered in London traded on the London Stock Exchange and a constituent ofthe FTSE 250 Index. The Company has continuing interests in Vietnam, Yemen,Libya, Thailand and the Republic of Congo with ongoing production operations inYemen. The appraisal well on the Ca Ngu Vang ("CNV") structure on Block 9-2 offshoreVietnam, the CNV-4X, has encountered an oil and gas interval with unexpectedhigh pressure in the Oligocene E Sequence, the sandstone sequence overlying theBasement objective, and has been temporarily suspended. The joint venturepartners decided to suspend the well, which spudded on 31 August, following theloss of the 12 1/4" hole section above the granitic Basement reservoir. Thepressures encountered were significantly higher than those seen previously onthe other CNV wells. The well encountered a gross 370 metre vertical section of oil shows withattendant gas through the Oligocene "E" sandstone section, based on mud logs,drilling cuttings analysis and LWD logs. The use of higher than anticipated mudweights to control the encountered pressures led to problems higher in the openhole section where the drill string became differentially stuck while pullingout of the hole to run casing into the top of Basement. Numerous attempts tofish the stuck drill string have been unsuccessful. Plans are underway toincorporate a different drilling fluid and casing design into the programme toenable the overpressured section to be redrilled safely. The rig will be moved immediately to drill a follow-up appraisal well to the9,432 barrels of oil equivalent per day TGT-1X well drilled earlier this year onthe Te Giac Trang ("TGT") structure. It will be the fourth well in themulti-well drilling programme which began this year in Vietnam. The rig willreturn to Block 9-2 following completion of the appraisal programme in Block16-1. Ed Story, President and Chief Executive of SOCO, commented: "This bodes well for the high prospectivity of Block 9-2 as the CNV-4X well isonly the second location in the Cuu Long Basin that has encountered such goodoil and gas shows in the E Sequence sandstones. This adds significant remainingexploration potential to Block 9-2 as the Oligocene section has been identifiedand mapped over other prospects on the Block. Time spent drilling in Block 16-1will afford us the opportunity to obtain the necessary materials to return toBlock 9-2. The recent TGT-1X discovery and our experience in the Oligocene section of theCNV-4X well underscores the significant potential of these two acreage positionson either side of the giant Bach Ho field. " 1 December 2005 ENQUIRIES: SOCO International plcRoger Cagle Tel: 020 7747 2000Deputy Chief Executive and Chief Financial Officer Pelham Public RelationsJames Henderson Tel: 020 7743 6673Charles Vivian Tel: 020 7743 6672 NOTES TO EDITORS: SOCO holds its interests in Vietnam, all in the Cuu Long Basin offshore, throughits 80% owned subsidiary SOCO Vietnam Ltd ("SOCO Vietnam"). SOCO Vietnam holdsa 25% working interest in Block 9-2, which is operated by the Hoan Vu JointOperating Company and a 28.5% working interest in Block 16-1, which is operatedby the Hoang Long Joint Operating Company. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Pharos Energy