Vietnam Discovery Update

RNS Number : 7421Y

Soco International PLC

10 July 2008

 



SOCO International plc

('SOCO' or 'the Company')

Vietnam Discovery Update

The second of two planned drill stem tests on the Te Giac Den ('TGD-1X-ST1') discovery well on Prospect 'E' has recovered black oil, condensate and gas, indicating the presence of oil with similar qualities to that of the Ca Nu Vang Field, which will begin production later this month.

The well encountered approximately 120 metres of good oil and gas shows in a combined gross interval of 570 metres.  Permeability and porosity were preserved and compared favourably with pre-drill estimates.  

The test was hampered by apparent limitations of the perforations, which had to penetrate two casing strings and associated cementing. Additionally, operational issues during both the drilling and testing of the well impacted on its ability to flow and accordingly there are no meaningful sustainable flow rates from either test. As planned, the Hoang Long Joint Operating Company, operator of Block 16-1 in the Cuu Long Basin offshore Vietnam, has announced that it will now plug and abandon the well. 

The 'E' Discovery well confirms the presence of a working hydrocarbon system in a high pressure environment necessary to recover hydrocarbons at these depths.  Therefore, appraisal drilling will commence following the well data analysis and seismic reprocessing. The well design and drilling programme will also be revised to allow a better evaluation of each of the hydrocarbon bearing formations. 

The Adriatic XI rig will immediately move to the Te Giac Trang Field and drill the TGT-7X appraisal well on the H3 north fault block. 

Ed Story, President and Chief Executive of SOCO, commented:

'As we previously highlighted, the significance of the TGD discovery, at this stage, is the confirmation of the Appraisal Area.  Furthermore, the presence of a working hydrocarbon system on such a vast structure underscores the future value of this Discovery and the potential to continue to significantly grow the Company's reserve base in Vietnam.'  

10 July 2008

ENQUIRIES:

SOCO International plc

Roger Cagle, Deputy Chief Executive and Chief Financial Officer 

Tel: [phone]

Pelham Public Relations

James Henderson Tel: [phone]

Alisdair Haythornthwaite Tel: [phone]

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, Thailand, the Republic of Congo (Brazzaville), the Democratic Republic of Congo (Kinshasa) and Angola.

 

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