Soco International PLC
17 March 2008
SOCO International plc
('SOCO' or 'the Company')
PRESIDENTIAL DECREE AND ADDITIONAL LICENCE IN
THE DEMOCRATIC REPUBLIC OF CONGO (KINSHASA)
The Company announces that its Production Sharing Contract ('PSC') over the
Nganzi Block, onshore the Democratic Republic of Congo (Kinshasa) ('DRC'), has
received a Presidential Decree thus passing the final regulatory hurdle before
becoming effective 12 April 2008. The Company subsidiary, SOCO Exploration and
Production DRC Sprl ('SOCO E&P-DRC'), is the operator with an 85% participating
interest in the Block. La Congolaise des Hydrocarbures ('Cohydro'), the state
owned oil company, holds the remaining 15% interest.
The Nganzi Block, in which there had been little previous activity before the
Company signed the PSC in July 2006, comprises an area of approximately 800
square kilometres on the eastern flank of the prolific coastal basin. The
Company acquired a reconnaissance aeromagnetic and gravity survey across the
Block to define the basin geometry and structural trends and subsequently
conducted a geochemical survey to evaluate the potential of the structural leads
identified by the aero survey. The results of both surveys will be used to help
lay out a 2D seismic grid and acquisition is expected to commence in the summer
of 2008.
In addition, SOCO E&P-DRC has entered into a new PSC with the Government of the
DRC, Dominion Petroleum Limited ('Dominion') and Cohydro, wherein the parties
have acquired exclusive rights for hydrocarbon exploration on Block 5, located
in the southern Albertine Graben in eastern DRC adjacent to the DRC/Uganda
border. The Block has an area of 7,105 square kilometres, including part of
Lake Edward. There were several significant oil discoveries made in 2006 and
2007 in the central Albertine Graben.
The SOCO subsidiary holds a 38.25% participating interest in the PSC with
Dominion, as operator, holding a 46.75% interest through its subsidiary Dominion
Congo Limited and Cohydro holding the remaining 15% interest. The PSC is
subject to and becomes effective upon ratification by the President of the DRC.
The first phase of the PSC has a 5 year span, during which SOCO and Dominion
will carry out geological and geophysical work, acquire at least 300km of
seismic data and drill two exploration wells. The PSC is renewable for two
further five-year terms.
Ed Story, President and Chief Executive of SOCO, commented:
'Confirmation of our first PSC in the Democratic Republic of Congo is a very
important first step to commencing a full scale exploration programme in the
country. Moreover, we are pleased to have the possibility to expand our
portfolio in this country where we see significant unexplored potential. We
view our collaboration with Dominion Petroleum as an effective way of extending
our asset base eastward in the country given their extensive involvement in the
Albertine Graben.'
17 March 2008
ENQUIRIES:
SOCO International plc
Roger Cagle, Deputy Chief Executive and Chief Financial Officer
Tel: 020 7747 2000
Pelham Public Relations
James Henderson Tel: 020 7743 6673
Alisdair Haythornthwaite Tel: 020 7743 6676
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, Yemen, Thailand,
the Republic of Congo (Brazzaville), the Democratic Republic of Congo (Kinshasa)
and Angola with production operations in Yemen. Its production operations in
Yemen are currently the subject of a conditional sale and purchase agreement
announced earlier this year.
This information is provided by RNS
The company news service from the London Stock Exchange
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