30th May 2006 07:02
Soco International PLC30 May 2006 SOCO International plc ("SOCO" or "the Company") Vietnam Drilling 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 andthe Republic of Congo with production operations in Yemen. The first exploration well on the "L" prospect, on Block 16-1 in the Cuu LongBasin offshore Vietnam, Te Giac Vang 1X (TGV-1X), spudded on 2 May, reached atotal measured depth of 3,926 metres in the Upper Oligocene. The well wasdeepened from its original prognosis due to the presence of encouraginghydrocarbon shows continuing below the original target depth. It was primarilypositioned to test a closure at the Miocene Lower Bach Ho 5.2 ("LBH 5.2") level,the main productive horizon at the Te Giac Trang (TGT) discovery approximately40 kilometres to the north. The well intersected a clastic sequence at the LBH 5.2 horizon, however thereservoir sands were poorly developed at the location and no pay wasencountered. The sediments encountered suggest that the well was located outsidethe LBH 5.2 play fairway and that this fairway is to the north and west of theTGV-1X location. The well was also drilled into the Oligocene; however, the location was downdipon the flank of the structure. Despite being in a flank position, good oil showswere encountered in several sands. After analysis of the logs, although thesands were confirmed to be hydrocarbon bearing, it appeared that these lackedsufficient permeability to produce at commercial rates and were therefore nottested. The well results will be evaluated and the seismic re-interpreted prior todrilling a follow up well to fully test the Oligocene in a more prospectiveup-dip position. The well also penetrated the source rock section at the top of the Oligocenevalidating the geological interpretation and confirming the potential of thedeep Oligocene and Basement prospect underlying the shallower closures. The rig will be moved immediately to drill the sidetrack to the CNV-4X well onBlock 9-2 that was temporarily suspended after encountering unexpected highpressures in the Oligocene sequence above the Basement. The well is expected totake approximately 60 days to drill. Following this well a new drillingcampaign on the play fairway will commence in mid-late September with thearrival of the Transocean Trident 9 jack-up rig. Ed Story, President and Chief Executive of SOCO, commented: "Although the TGV-1X well did not result in another significant discovery, wedid encounter oil in the Oligocene and will follow up with another well on theTGV structure to evaluate the Oligocene in a better location. The Cuu Long Basinis a wonderful place to conduct exploration activities. Rich source rockcoupled with multiple potential reservoirs greatly improves the probability ofsuccess. Ahead of the next exploration drilling on Block 16-1 in the thirdquarter of this year, we can focus on the required reserve assessment report anddevelopment studies, which we expect will lead to a Declaration of Commercialityof TGT in the near future." 30 May 2006 ENQUIRIES: SOCO International plcRoger Cagle Deputy Chief Executive Tel: 020 7747 2000 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 Limited ("SOCO Vietnam"). SOCO Vietnamholds a 25% working interest in Block 9-2, which is operated by the Hoan VuJoint Operating Company and a 28.5% working interest in Block 16-1, which isoperated by the Hoang Long Joint Operating Company. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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