RNS Number : 8083O

SOCO International plc
('SOCO' or the 'Company')

 OPERATIONS UPDATE

Vietnam

SOCO announces that the drill stem tests thus far on the TGT-10XST1 well exploration well on the H5 fault block of the Te Giac Trang ("TGT") field, have exceeded all pre-test expectations. Combined peak production from two of the three zones tested is over 16,500 barrels of oil per day (“BOPD”). The third drill stem test in the well, which encountered approximately 250 metres of gross pay section (approximately 119 metres of net pay) in the Miocene and Oligocene reservoir horizons, is now underway.

The first test, over a net 93 metre section in the Oligocene “C”, produced at a maximum rate of 9,488 BOPD and 1.16 million standard cubic feet of gas per day (“MMSCFD”) of 41.1 degree API oil. The second test, over the Miocene Lower 5.2L sequence, tested a net 47.3 metres interval. The maximum flow achieved over this interval was 7,100 BOPD and 1.76 MMSCFD.

The final test is of the Lower Miocene Intra Lower Bach Ho 5.2 Upper and Lower sequence, testing an additional net 88.6 metres. This test has just commenced and should be completed in another 5-7 days.

The well is located approximately six kilometres south of the H4 Well Head Platform, which is in the southern part of the TGT field in Block 16-1 located in the Cuu Long Basin off the southern coast of Vietnam.

Republic of Congo

The Lideka East Marine-1 well (“LDKEM-1”) targeted a post-salt structure, up-dip from the Lideka Marine-1 well which found shows of oil in the Sendji Formation (“iS3”). The well encountered approximately 50 metres of net pay section in the Upper and Lower Sendji, of which approximately 30 metres of net pay are within the targeted iS3 and S4 horizons.

The LDKEM-1 well was tested over a 20 metre interval in the iS3 and S4 horizons. The well flowed 30-35 degree API oil at a sustained rate of 350 BOPD, with base, sediment and water around 1%, in line with predictions from the petrophysical analysis.  Produced gas volumes were very low.

The well was drilled on the crest of the structure to identify the length of the oil column. The Sendji is known to be a heterogeneous reservoir, and detailed rock physics and inversion models will need to be used to determine where the best porosity zones are situated. The oil water contact was not well defined in the exploration well, and an “oil down to” shale barrier could present upside. Further work will be conducted to establish viable opportunities on this field.

Republic of Angola (Cabinda)

The first well of the two well exploration programme commenced on 9 August 2013 and is currently drilling at approximately 1,200 metres. The Dinge 20-6 well is planned to test the Vovo Sands in the pre-salt section onshore Cabinda North in the area of the Dinge discovery. The target sands were deposited in a lacustrine environment above the middle Bucomazi, which is a world class source rock. The second well, Dinge 20-7, will be drilled immediately following completion of Dinge 20-6.

The sands were tested previously in the 1970’s by three wells. A lack of seismic data prevented a fuller evaluation of the reservoir extent. The current locations have been selected following a block wide seismic acquisition and evaluation campaign that was completed last year. The Vovo sands of the Dinge Field are in an equivalent stratigraphic position to the Mengo-Kundji-Bindi reservoirs of the Republic of Congo, 17 kilometres northwest and on trend.

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

"We are very excited by the results thus far on the H5 Block. Already the most prolific well tested in the field, the Oligocene test, one of the best results from the Oligocene in Vietnam, is an added bonus. This supports the push for bringing the H5 area on stream as soon as possible.

The results from the Lideka Marine East well, while not as good as we had hoped, are in line with that seen in regional analogues like the Yombo and Sendji Fields. The sharply contrasting reservoir characteristics within these fields are indicative of changes that could be present at our Lideka Discovery. Additional interpretive work will help to establish the location of potential higher productive areas in Lideka and assist in our evaluation towards commerciality.”

 

25th September 2013

 

ENQUIRIES:

SOCO International plc
Roger Cagle, Deputy Chief Executive and Chief Financial Officer
Tel: 020 7747 2000

Bell Pottinger Pelham
Rollo Crichton-Stuart
Elizabeth Snow
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 wholly-owned subsidiaries, SOCO Vietnam Ltd and OPECO Vietnam Limited. SOCO Vietnam Ltd 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 Vietnam Limited holds a 2% interest in Block 16-1.

SOCO holds its interests in the Republic of Congo (Brazzaville) through its 85% owned subsidiary, SOCO Exploration and Production Congo SA ("SOCO EPC").  SOCO EPC holds a 40.39% interest in the Marine XI Block located offshore in the shallow water Lower Congo Basin and is designated operator of the Block. SOCO EPC also holds a 100% interest in a one-year exploration licence over the Nanga II A Block, located onshore, adjacent to the coast. 

SOCO holds its interests in the Democratic Republic of Congo (Kinshasa), all onshore, though its 85% owned subsidiary, SOCO Exploration and Production DRC Sprl ("SOCO E&P DRC").  SOCO E&P DRC holds a 65% working interest in the Nganzi Block, situated 50 kilometres from the west coast, and an 85% working interest in Block V, situated in the southern Albertine Graben in eastern DRC.  SOCO E&P DRC is designated operator of both Blocks.

SOCO holds its interests in the Angolan enclave of Cabinda through its 80% owned subsidiary, SOCO Cabinda Limited, which holds a 17% participating interest in the Production Sharing Agreement for the Cabinda Onshore North Block.

 

 
 
 
 
 
 
 
 
 

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