Signing of Vietnam Petroleum Contract
Soco International PLC
15 November 1999
SOCO International plc ('SOCO' or 'the Company')
GD Searle
SOCO is an international oil and gas exploration and production
company, headquartered in London. In addition to its interests in
Vietnam, the Company has operations in Mongolia, Yemen, European
Russia, Tunisia, Thailand and North Korea.
SOCO announces today that its 70% owned subsidiary, SOCO Vietnam
Ltd. ('SOCO Vietnam'), has now formally signed a Petroleum
Contract with Petrovietnam, the Vietnamese national oil company,
for the exploration, development and production of oil and natural
gas in Block 16-1. The interests under the Petroleum Contract will be
held 41% by Petrovietnam, 30% by SOCO Vietnam and the remainder by other
non-Vietnamese companies.
Block 16-1 is located in the Cuu Long Basin approximately 50
kilometers off the coast of Vietnam in water depth ranging between
40 metres and 60 metres and covers an area of approximately 2,100
square kilometres. A high level of industry interest in the Block
evolved after Petrovietnam developed basement completion
practices, which resulted in the discovery of the Bach Ho (White
Tiger) and other prolific fields in analogous portions of the Cuu
Long Basin. Bach Ho, which is located approximately 10 kilometres
from the eastern boundary of Block 16-1, is currently producing
approximately 185,000 barrels of oil per day.
Ed Story, President and Chief Executive of SOCO, commenting on the
announcement, said:
'Since we first began our efforts in Vietnam in 1994, SOCO has
developed a very close relationship with Petrovietnam and the
Government of Vietnam. The strength of that relationship is
demonstrated by the fact that SOCO was awarded the largest
non-Vietnamese working interest in Block 16-1 in the face of intense
international competition. The oil potential of this Block is
substantial and it could significantly change the asset base of SOCO.
Accordingly, we are anxious to begin our exploration efforts as
soon as possible. '
15 November 1999
Enquiries:
SOCO International plc Tel: 020 7 399 3300
Ed Story, Chief Executive
Roger Cagle, Chief Financial Officer
College Hill Tel: 020 7 457 2020
James Henderson
Archie Berens
Notes for Editors:
SOCO is an international oil and gas exploration and production
company, headquartered in London, with interests in Vietnam,
Mongolia, Yemen, European Russia, Tunisia, Thailand and North
Korea. Exploration prospects are in Mongolia, Vietnam, Thailand
and North Korea. Development programmes are underway in Russia,
Yemen and Tunisia. The Company has current production in Russia,
Yemen, and Tunisia.
For the six months ended 30 June 1999, SOCO's net overall
production averaged 6,985 bopd. Ongoing development programmes,
especially in Yemen, should see that figure rise to approximately
10,000 bopd by 2000.
SOCO recently announced the disposal of its UK onshore producing
assets in the Weald basin for £10.6 million. This sum, combined
with SOCO's existing cash resources and the £8.7 million cash
injection from the Torobex investor group in July 1999, means that
SOCO currently has net cash in excess of £20 million.
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