Last checked at 9 Dec 2014 07:00
09 December 2014
SOCO International Plc("SOCO" or the "Company")
Updated Technical Review of Te Giac Trang Resources
SOCO announces that ERC Equipoise ("ERCE") has completed its evaluation of the Block 16-1 Te Giac Trang field ("TGT") offshore Vietnam, which confirms the Company's long standing view of the size and production potential of the TGT field.
Evaluation highlights:
· The updated TGT Stock Tank Oil Initially In Place ("STOIIP") demonstrates a most likely volume of 818 million barrels of oil ("MMBO") for the currently drilled fault blocks. Including the H5N and H5S fault blocks, planned to be drilled in Q1 2015, the most likely STOIIP would be 949 MMBO.
· Potential oil recovery within the expected licence period to 2030, based on the most likely case Geological Model (inclusive of H5N and H5S) and under a variety of potential development scenarios evaluated to date, are estimated at up to 319 MMBO. SOCO's TGT booked 2P oil reserves as at 31 December 2013 correspond to an initial gross field recoverable volume of 298 MMBO.
· The ERCE reservoir modelling demonstrates facilities unconstrained field performance potential in excess of 100,000 barrels of oil per day.
· The reservoir modelling provides a framework for optimising development of the TGT field beyond the currently approved field development plan; assuming no further activity on the field beyond 2015 or changes to infrastructure or FPSO capacity, the modelled estimated recovery is 193 MMBO (inclusive of H5N and H5S).
· In addition, ERCE identified several small undrilled closures during the field remapping. These closures together may contain an estimated most likely STOIIP of 17 MMBO.
In 2013, SOCO retained ERC Equipoise to build a Dynamic Simulation Model of the TGT field. In 2014, this engagement was expanded to include the integration of a new Geological Model. The Geological Model was integrated into a revised Dynamic Simulation Model for a technical evaluation of the TGT resources. Upon completion of the history match and H5 area additions, the simulation model was set up to run a series of forecasts aimed at evaluating the ultimate oil volume recoverable given various levels of development drilling and pressure maintenance by water injection under various FPSO and alternative liquid handling options.
At this time, the Hoang Long Joint Operating Company ("HLJOC") partners are evaluating the 2015 work programme and budget, as well as preparing an update to the TGT Field Development Plan ("FDP") for submission to the relevant Vietnamese authorities. The updated FDP will incorporate the development plans for the TGT field beyond 2015. The conclusions of the ERCE work will be shared with the HLJOC partners as part of this process as the work suggests a substantial gain in oil recovery can be achieved by way of improvements to the TGT field liquid handling capacity, infill drilling and optimised pressure support.
Ed Story, SOCO CEO, commented:
"This confirms our long standing view on the size and production potential of the TGT field and provides a robust model to optimise the development and future potential of this large resource for the benefit of the field owners and the Government of Vietnam."
TGT Dynamic Model Recoverable Volumes to 2030
H1-H5 Fault Blocks(STOIIP 818 MMBO) | H1-H5 Fault Blocks plus H5N and H5S (STOIIP 949 MMBO) | |||
Modelled scenario | Recoverable oil (MMBO) | Recoverable oil and gas (MMBOE)(1) | Recoverable oil (MMBO) | Recoverable oil and gas (MMBOE)(1) |
80 well development programme assuming no facility constraints | 294 | 322 | 319 | 350 |
Existing plus proposed 2015 wells assuming existing facility capacity constraints(2) | 186 | 203 | 193 | 211 |
(1) Gas volumes converted at 6 bcf = 1 MMBOE, and assuming gas fuel consumption of ca. 40 bcf over the production period.
(2) Model based on a) 32 wells based on approved Field Development Plan and proposed 2015 development programme and b) FPSO liquid and oil processing limits of 100,000 barrels of liquid per day and 43,000 barrels of oil per day respectively until the end of 2019, then 120,000 barrels of liquid per day and 55,000 barrels of oil per day.
ENQUIRIES:
SOCO International plc
Antony Maris, Chief Operating Officer
Anya Weaving, Chief Financial Officer
Tel: 020 7016 8530
Bell Pottinger
Nick Lambert
Elizabeth Snow
Tel: 020 3772 2500
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