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

SOCO is an international oil and gas exploration and production company, headquartered in London. The Company has interests in Vietnam, Mongolia, Yemen, Libya, Tunisia, and Thailand with production operations in Yemen, Tunisia and Mongolia.

The Company’s wholly-owned subsidiary, SOCO Tamtsag Mongolia, Inc. ("SOTAMO"), has successfully completed its planned four well 2004 exploration programme in Mongolia. The objective of this year’s programme was to explore the most prospective areas delineated by the interpretation of recently acquired seismic in an area North of the currently producing Tolson Uul field. All four wells drilled in this year’s programme encountered hydrocarbons.

Two wells have been completed for production as part of the pilot production programme. One well has possible formation damage and will be further evaluated. The fourth well will be completed in 2005. As is typical, drilling and completion operations have been suspended for the Mongolian winter months.

The success of the first three wells drilled this year has resulted in the designation of a new field, Tolson Uul North.

Individual Well Results

Well 19-20 was drilled to a total depth ("TD") of 2,410 metres encountering good oil shows in the Tsagaantsav formation. The well was completed in this formation and fracture stimulated, which resulted in an initial production rate of approximately 70 barrels of oil per day ("BOPD").

Well 19-21 encountered good oil shows in the Zuunbayan and the Tsagaantsav while drilling to a TD of 2,625 metres. The well was completed in the Zuunbayan formation with an initial production rate of approximately 120 BOPD.

Well 19-22 was drilled to a TD of 2,600 metres. Although it encountered good oil shows in the Tsagaantsav formation, a sudden and complete loss of circulation occurred in a fracture zone during drilling. The well was successfully cased and will be further evaluated over the winter and completed in 2005.

The final well of the 2004 programme, the 19-23, was drilled on a previously untested structure to a TD of 2,253 metres. The well encountered good oil shows in the Zuunbayan formation thus extending the productive area of the basin approximately nine kilometres to the north. The 19-23 was completed, but initial test results indicate that reservoir damage is potentially limiting the well’s performance. The well has been suspended for further evaluation.

The pilot production programme will continue throughout the winter from those wells capable of being produced in Contract Area 19. SOCO plans to focus near term future activity on improving performance from the existing producing wells and further evaluating the productive trend identified by the new wells. Following a thorough combined geoscience and reservoir engineering review, the Company will plan the next stage of the area development.

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

" The success of our exploratory drilling programme in Mongolia this year increases our confidence in the reserve potential of the Tamtsag Basin. We will integrate the technical data from this year’s drilling programme to improve our understanding of the highly prospective but complex area."


28 October 2004


ENQUIRIES:

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

College Hill
Ben Brewerton
Nick Elwes
Tel: 020 7457 2020

Notes to Editors

SOCO is operator and holds an approximate 85% working interest in PSC’s over Contract Areas 19, 21 and 22 in the Tamtsag Basin in Mongolia through its wholly owned subsidiary, SOCO Tamtsag Mongolia. The Chinese company providing the drilling services has earned the right to take a 10% working interest and a 5% interest is being carried through the exploration phase for PetroVietnam, the Vietnamese national oil company.

SOCO acquired a 100 square kilometre 3D seismic programme, early in 2004, to further evaluate an area north of the currently producing Tolson Uul field in Contract Area 19. The programme allowed definition of a broad structural high with an areal extent of approximately 23 square kilometres. The area was first tested in 2003 by the 19-17 and 19-19 wells, both of which encountered oil in the Tsagaantsav and Zuunbayan formations and both of which are now on production.

The crude oil is sold at world prices primarily under a contract with China National Oil Corporation, but also occasionally to area power plants. The crude sold is trucked under a turnkey contract to a pipeline terminal in Aershan Oilfield in China for further transportation to a refining centre.
 
 
 
 
 
 
 
 

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