Last checked at 12 Oct 2010 07:00
SOCO International plc
('SOCO' or the 'Company')
Operations Update
Vietnam
Exploration and Appraisal
The Te Giac Den appraisal well, TGD-2X, will be plugged and abandoned. Although the well encountered significant hydrocarbons in a clastics reservoir sequence at approximately 4,550 metres measured depth and produced both black oil and gas, it flowed at sub-commercial rates.
The TGD-2X well was drilled on the flank of the structure, whereas both the TGD-1X and TGD-1XST wells were on the crest of the structure. However, the oil leg on the flank of the structure lacked the gas content encountered on the crest, thus there was insufficient reservoir energy to generate acceptable flow rates. Post drilling analysis continues as the well is being prepared for abandonment and a decision as to the future of the TGD appraisal area will follow.
Development
The first two development wells on the Te Giac Trang development offshore Vietnam have been completed. Preliminary log analysis of the first well, the TGT-H1-1P, drilled to essentially twin one of the original discovery wells, indicates that the well encountered the top of the target reservoir horizon on prognosis. The second well, the TGT-H1-2P, encountered the reservoir section approximately 10 metres higher in the section than the pre-drill prognosis which strongly supports the favourable structural reservoir analysis following the reprocessed pre stack depth migrated seismic that the TGT field extends to the east.
Both wells are being suspended and will become producing wells upon start-up of production in mid 2011. Production during this first phase of development is estimated to be circa 55,000 barrels of oil per day.
DRC Exploration
The Kinganga-Nyanya-1 exploration well on the previously designated "D" prospect of the Nganzi Block, onshore the Democratic Republic of Congo, spudded on 1 October. The well is currently drilling ahead below 800 metres with a targeted total depth of approximately 1,800 metres. It is expected to take approximately 20 days to drill to total depth.
Ed Story, President and Chief Executive of SOCO, commented:
"When we embarked on the TGD exploration campaign, we realized that it would be difficult and technically challenging. However, such a vast potential prize warranted the effort. Further analysis of the data gathered from the TGD-2X well will determine our path forward for this area. On the other hand, we are extremely pleased that the revised TGT field interpretation has been validated in an early well giving rise to a potentially greater accumulation of reserves in the field.
Our exploration efforts in the DRC continue and we look forward to the results of the KNY-1 well."
12 October 2010
ENQUIRIES:
SOCO International plc
Roger Cagle, Deputy Chief Executive and Chief Financial Officer Tel: 020 7747 2000
Pelham Bell Pottinger
James Henderson Tel: 020 7861 3232
Archie Berens Tel: 020 7861 3232
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 constituent of the FTSE 250 Index. The Company has interests in Vietnam, the Republic of Congo (Brazzaville), the Democratic Republic of Congo (Kinshasa) and Angola, with production operations in Vietnam.
SOCO holds its interests in Vietnam, all in the Cuu Long Basin offshore, through its 80% owned subsidiary SOCO Vietnam Ltd. ('SOCO Vietnam') and through its 100% ownership of OPECO Inc. SOCO Vietnam holds a 25% working interest in Block 9-2, 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 Joint Operating Company. OPECO Inc. holds a 2% interest in Block 16-1.