Sale of Tunisian Assets
Soco International PLC
18 November 2004
SOCO International plc
('SOCO' or 'the Company')
Sale of Tunisian Assets
SOCO is an international oil and gas exploration and production company,
headquartered in London. The Company has continuing interests in Vietnam,
Mongolia, Yemen, Libya and Thailand with ongoing production operations in Yemen
and Mongolia.
SOCO announces that it has entered into a Sale and Purchase Agreement (the '
Agreement') for the sale of its interests in the Zarat Permit offshore Tunisia
in the Gulf of Gabes, which includes its 22.22% interest in the Didon producing
field and a 22.22% percent interest, subject to the government's right to claim
up to 55%, in the remaining permit area that includes the undeveloped Zarat and
Elyssa Fields. These interests are held directly by SOCO Tunisia Pty Limited,
which is in turn wholly owned by SOCO Overseas, the 100% owned entity of the
Company that is being sold by SOCO in the transaction. The entity is being
acquired by PA Resources AB ('PAB') a publicly listed Swedish company that holds
other interests in Tunisia.
Pursuant to the Agreement, which has a 1 July 2004 effective date, PAB will
acquire the whole of SOCO's Tunisian interests for the consideration of US$25
million (£13.5 million at an exchange rate of US$1.8585), subject to normal
working capital adjustments. Completion is expected to take place on or before
3 December 2004. Working interest production to the Company from its Tunisian
interests averaged 1,049 barrels of oil per day during the first half of 2004.
SOCO's Tunisian proved and probable reserves on an entitlement basis totaled 6.3
million barrels at the end of 2003. For the year ended 31 December 2003, SOCO's
Tunisian interests had turnover of £6.5 million, profit before tax of £3.2
million and, as at 31 December 2003, gross assets of £12.2 million.
The disposal is consistent with the Company's stated strategy of rationalising
its portfolio by monetising non-core assets. The proceeds from this transaction
will further strengthen the Company's debt free balance sheet, providing
additional leverage to allow it to participate in further opportunities that may
arise.
Ed Story, President and CEO of SOCO, said, 'This transaction with PA Resources
is mutually beneficial as it provides SOCO additional capital to deploy toward
projects that can further enhance it's core portfolio and places these assets
with a group for which this is a core area.'
18 November 2004
ENQUIRIES:
SOCO International plc Tel: 020 7747 2000
Roger Cagle
Deputy Chief Executive and Chief Financial Officer
College Hill Tel: 020 7457 2020
Ben Brewerton
Nick Elwes
This information is provided by RNS
The company news service from the London Stock Exchange
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