1st Aug 2006 07:01
Soco International PLC01 August 2006 SOCO International plc ("SOCO" or "the Company") OPERATIONS UPDATE 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 interests in Vietnam, Yemen, Thailand, theRepublic of Congo (Brazzaville) and the Democratic Republic of Congo (Kinshasa)with production operations in Yemen. YEMEN Current production in the East Shabwa Development Area is up over 12,000 barrelsof oil per day ("BOPD") from the 2005 year average. Drilling results and theaddition of a self contained production facility have enabled the fields toexceed all previous production records with production exceeding 45,000 BOPD. APPRAISAL/DEVELOPMENT DRILLING - KHARIR FIELD A number of successful development wells have been drilled on the field sincethe February 2006 update. These include the KHA-1-12 well in the western part ofthe structure, the KHA-1-14 well in the southern flank of the structure and theKHA-1-07.G1 sidetrack, which was drilled as a water injection well but completedas a producer based on drilling results. These wells are all connected to theproduction facilities and were tested at rates between 5,500 and 8,000 BOPD. The drilling of wells designed to ensure field pressure maintenance is beingaccelerated in parallel. The KHA-1-11 gas injection well is nearing completion.It is being drilled using underbalanced drilling technology that allows theassessment of connectivity between a nearby producer and an actively drillinginjection well. Gas injection is scheduled to commence late summer. TheKHA-1-13 water injection well, designed to provide pressure support to theeastern end of the structure, has been connected to the water injection system. Currently, the KHA-1-16 production well, designed to continue the delineation ofthe reservoir in the eastern part of the structure as currently mapped, and theKHA-1-17 water injection well, aimed at providing pressure support to the wellsdraining the northwest end of the structure, are being drilled. EXPLORATORY DRILLING - JATHMA AREA The first Jathma exploration well, the JAT-01 that tested over 1,900 BOPD, iscurrently being prepared for long term production. The oil produced will betrucked to the existing Kharir facilities for processing and export, enablingrapid and economic development. The sidetrack of the second exploration well in the Jathma area, the JAT-02well, has been completed. The objective of the sidetrack was to evaluatefracture development away from the original wellbore. Testing programmes on theJAT-02-ST and the exploration well on the eastern side of the Jathma area,JAT-04, have been completed. Both wells encountered significant oil columns, butneither produced commercial volumes of hydrocarbons when tested. An evaluation of the results of all the Jathma area wells drilled to date willnow be conducted. A 3D seismic programme is currently being considered toacquire better definition of the fracture zones in the Jathma area. VIETNAM The sidetrack of the Ca Ngu Vang appraisal well, CNV-4XST, is currently at 4,927metres measured depth, just above Basement. Logging operations in the Oligocenehave been completed and preparations have begun to run 9-5/8 inch casing priorto drilling into the Basement reservoir horizon. Following this well, the drilling campaign in the Cuu Long Basin will continuewith the arrival of the Transocean Trident 9 jack-up rig. REPUBLIC OF CONGO (BRAZZAVILLE) A contract has been awarded to PGS Overseas AS for the acquisition of a 1,200square kilometre 3D seismic programme. The Ramform Explorer is expected tobegin acquisition in early October. Ed Story, President and Chief Executive of SOCO, commented: "There is a lot of activity across the asset portfolio. The ESDA partners have drilled a series of superb high performance wells in theKharir Basement. With the production capacity reaching the facility limits, thepartnership is focusing on ways of upgrading the facility. Success of both thewater injection and producer wells is good news for improving oil recovery inthe Basement. We are just above the top of Basement in the CNV-4X ST having successfullydrilled through the operationally problematic section that forced us to abandonthe original well-bore. Operations will begin in earnest on Marine XI with the 3D seismic acquisitionprogramme now set to begin. We expect exciting news flow throughout the rest of the year." 1 August 2006 ENQUIRIES: SOCO International plcRoger Cagle, Deputy Chief Executive and Chief Financial OfficerTel: 020 7747 2000 Pelham Public RelationsJames HendersonAlisdair HaythornthwaiteTel: 020 7743 6676 NOTES TO EDITORS The Company holds its interests in Yemen through Comeco Petroleum, Inc.("Comeco"), in which SOCO holds a 58.75% interest. Comeco holds a 28.57%interest in the East Shabwa Development Area in Block 10 in Yemen. The EastShabwa joint venture is operated by TOTAL E & P Yemen (28.57% interest) under aproduction sharing agreement with the government of Yemen. The other jointventure partners are Occidental Yemen Ltd. (28.57% interest) and Kuwait ForeignPetroleum Exploration Co. (14.29% interest). 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 in Block9-2, which is operated by the Hoan Vu Joint Operating Company and holds a 28.5%working interest in Block 16-1, which is operated by the Hoang Long JointOperating Company. OPECO Inc. holds a 2% interest in Block 16-1. SOCO holds its interests in the Republic of Congo (Brazzaville) through its 85%owned subsidiary SOCO Exploration and Production Congo ("SOCO EPC"). SOCO EPC isthe designated operator of Marine XI. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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