Final Results

Soco International PLC
11 March 2004



                              SOCO International plc
                            ('SOCO' or 'the Company')
              Preliminary results for the year ended 31 December 2003


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.  SOCO today announces preliminary results for the year ended 31
December 2003.


HIGHLIGHTS

•  Turnover of £25.5m (2002: £26.0m)
•  Net profit of £5.8m (2002: £5.5m)
•  Earnings per share of 8.4p (2002: 8.0p)
   •  Year end cash balances of £32.9 million, no debt
•  Vietnam appraisal programme confirmed hydrocarbon potential of Block 9-2
   discovery
•  Three consecutive high rate Basement discoveries in Yemen
•  Successful appraisal well in Tunisia confirmed extension of the Didon
   producing field
•  Gazprombank acquired a stake in ODEX, the Company's Libyan joint venture



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

'2003 has shaped SOCO for the future. We have continued to evolve our
relationships to access new opportunities and strengthened our own internal
capabilities, confirming the potential within our portfolio.

With these foundations and efforts, we are confident that SOCO is well
positioned to build on 2003 maximising on the opportunities that will arise from
our portfolio during 2004 and beyond.'


                                                                   11 March 2004


ENQUIRIES:

SOCO International plc                          Tel:  [phone] (today)
Ed Story, President and Chief Executive         Tel:  [phone] (thereafter)
Roger Cagle, Deputy Chief Executive
and Chief Financial Officer
College Hill                                    Tel:  [phone]
James Henderson
Nick Elwes




                         CHIEF EXECUTIVE'S REVIEW


The year 2003 began on a very encouraging note with the continuation of an
active drilling programme in the Cuu Long Basin offshore Vietnam and ended on a
realistic yet optimistic note with the results of this drilling programme.
Whilst the Vietnam project has not reached the point of commercialisation, there
were excellent indications both from SOCO's own drilling programme and from the
drilling programmes of other companies in the Cuu Long Basin that the much
anticipated potential of prospects on Blocks 9-2 and 16-1 will likely meet or
exceed Company expectations.

Although much of the focus for SOCO during 2003 was naturally directed towards
its high profile Vietnam exploration drilling programme, some positive
developments occurred in the Company's other primary areas of operations.
Basement exploratory drilling in Yemen, where production to date has been
primarily sourced from a Cretaceous interval, resulted in three comparatively
high rate discoveries, with initial production rates ranging from 1,700 barrels
of oil per day ('BOPD') to 6,000 BOPD, leading to a reserves upgrade for the
East Shabwa Development Area ('East Shabwa').  Likewise, a successful appraisal
well in Tunisia confirmed the extension of the Didon producing field in the
offshore Zarat Permit, thereby increasing reserves.  In Mongolia we
significantly enhanced the opportunities for rationalisation of the project by
obtaining a five year extension to the exploration phase of the three Blocks we
hold there.

FINANCIAL AND OPERATING RESULTS

The Company's overall 2003 financial and operating performance was in line with
expectations and not markedly different from the prior year with turnover for
both years sourced primarily from producing operations in Yemen and Tunisia.
Production net to the Company's working interest was down, dropping from 6,203
BOPD in 2002 to 5,409 BOPD.  Oil prices rose to lofty levels with the Dated
Brent benchmark crude oil price averaging almost US$4 per barrel more than in
2002.

Exchange rate movements magnify differences in yearly comparisons of financial
results, as the US dollar, the currency of the industry and the one in which
SOCO maintains 98% of its cash balances, lost substantial strength against the
GB pound, the Company's reporting currency.  Reported profits after taxes
increased from £5.5 million in 2002 to £5.8 million in 2003.  Ignoring exchange
rates, a comparison of after tax profits in US dollars gives perhaps a clearer
picture rising from US$8.2 million to US$9.6 million.

SOCO's financial strength allowed it to comfortably meet its funding
requirements for the largest capital programme in its short history.  Cash
balances declined year on year dropping from £51.5 million to £32.9 million.
However, cash balances as shown in the operating currency of US dollars show a
lower percentage decline, dropping from US$82.9 million to US$58.9 million.

Although 2004 is projected to be less capital intensive, another extremely
active drilling programme is scheduled for 2005.  The Directors wish to retain
flexibility in financing.  Thus the Directors have elected not to pay a
dividend.

SIGNIFICANT EVENTS
     
In the first half of 2003, SOCO North Africa Limited, a 45% interest holder and
a 100% owned SOCO subsidiary, and its partner Oilinvest (Netherlands) B.V. ('
Oilinvest'), a 55% interest holder, signed a Heads of Agreement whereby they
would sell the entire issued share capital of OILSOC Investment Company Limited
('OILSOC') to the Joint Stock Bank of the Gas Industry Gazprombank.  Under the
terms of this agreement, SOCO North Africa would receive approximately US$2.5
million for its net interest in OILSOC.  The assets held by OILSOC consist
entirely of a 20% shareholding in ODEX Exploration Limited ('ODEX'), a specific
purpose upstream joint venture formed by SOCO North Africa and Oilinvest to
identify, develop, produce and market hydrocarbon opportunities in Libya and
other countries.  Following the transaction SOCO North Africa would retain a 34%
shareholding in ODEX.

At the time of announcing the agreement, it was noted that the transaction was
subject to formal documentation and approval by the necessary regulatory
authorities amongst other things.  Although requiring much more time than was
anticipated at the time of announcement, the transaction was completed on 4
March 2004.  We are now in a position to further progress joint venture
activities.

RETROSPECTIVE

The past year was filled with accomplishment when measured against past years or
against realistic expectations, including in Vietnam where the appraisal
programme confirmed the hydrocarbon potential of the original discovery on Block
9-2.   Additionally, we believe the final piece required as a precursor to
success in Vietnam was completed with the staff reorganisation of both Joint
Operating Companies resulting in a significant upgrade in technical experience
and capability.

Largely because of the Company's experience in Vietnam, we were instrumental in
initiation of the further exploration of the Basement interval in Yemen that led
to a reserves upgrade.  We believe that the successes there could likely herald
a significant exploration opportunity in East Shabwa.  We also added reserves in
Didon as the result of a successful appraisal well.  This marks the third year
running that reserves have been upgraded in this producing field.

PROSPECTIVE

The year 2004 is expected to build on the successes of 2003.  In Vietnam, we
will integrate the results of the wells drilled by the consortium last year into
new, more predictive models derived from reprocessed seismic incorporating the
results of the drilling programme to date.  We will acquire new 3D seismic over
both Blocks in Vietnam with the aim of upgrading former leads into prospects as
the result of other companies' successes in similar settings in the Cuu Long
Basin last year.  Possibly by year end, but more likely in the first quarter of
2005, we will embark on our second major multi-well drilling campaign.

With three consecutive drilling successes in the Basement interval in Yemen, we
hope to influence the East Shabwa joint venture to emphasise this exploration
interval taking this project in a completely new direction.  Significantly, the
100% success ratio achieved in Basement in Yemen was achieved without this
interval being specifically targeted and without drilling horizontal or deviated
wells.

Extending the production sharing contracts ('PSCs') in Mongolia was vital to the
rationalisation of this project.  With two of the three Contract Area PSCs set
to expire within a year, there would not have been sufficient time to follow-up
on the Zuunbayan success we had last year in our first year of adequately
exploring this interval.  After acquiring an additional 3D seismic programme in
a new region of Contract Area 19, we expect to conduct a multi-well exploration
drilling programme in 2004.

The successful appraisal well in Tunisia drilled in January 2003 was connected
to subsea production facilities late in 2003 while the floating production,
storage and off-loading vessel was out of service for periodic re-certification.
With Didon becoming a multi-well producing field with upgraded reserves, this
project becomes more valuable to the portfolio as either a contributor to
operating cashflow or a candidate for disposal.

Completion of the reorganisation of the ODEX joint venture was a prerequisite to
introducing projects into the entity.  With this behind us, we expect to see the
joint venture go from a passive framework for entering new ventures in Libya and
other countries into an active operating joint venture company.

There are several other arenas where the Company believes that large potential
and new opportunities may arise during 2004.  We expect that some of the past
preparation for these opportunities to become available will pay off in the not
too distant future.

OUTLOOK

Although the Company may not have progressed any projects to the stage of
realising value during the year, we can confidently state that the prospects of
the Company have never looked better as we continue to crystalise potential from
the existing portfolio.  The efforts of the past year did confirm the potential
and the value of locking in the opportunities we have in hand.  Perhaps as
important, we have continued to evolve our relationships to access new
opportunities and continued to build our own internal organisation to be able to
better capitalise on these opportunities once captured in our portfolio.



                              REVIEW OF OPERATIONS

EXPLORATION

The Group participated in the largest exploration drilling programme in its
history in 2003. The majority of the wells drilled, those in Vietnam and Yemen,
had primary or secondary targets in Basement intervals and the results were
extremely encouraging; especially so considering the difficulties of exploring
in this technically challenging horizon.  The frontier drilling programme in
Mongolia continued with the exploration programme stepping out from previously
drilled areas and targeting for the first time the productive intervals reported
in nearby regions of China.

VIETNAM

After the successes of the initial exploratory programme in 2002, the consortium
was eagerly anticipating the follow-up exploration efforts in 2003. Although
this year's drilling results gave confirmation of the extent of an existing
discovery, and another consortium's drilling results bode well for some
remaining untested leads on both Blocks 16-1 and 9-2 in Vietnam, much technical
follow-up to the original discovery wells remains to be undertaken.

SOCO Vietnam Ltd ('SOCO Vietnam'), the 80% owned subsidiary through which the
Group holds its interests in Vietnam, and its primary partners, subsidiaries of
PTT Exploration and Production Public Company Limited of Thailand and
Petrovietnam, the state oil company of Vietnam, manage their operations in
Vietnam through Joint Operating Companies ('JOCs'). In recognition of the
technical challenges ahead, the consortium restructured the management groups of
both JOCs adding personnel with extensive experience in the region in general
and specifically in Basement reservoirs.

SOCO Vietnam holds a 25% working interest in Block 9-2 and a 28.5% interest in
Block 16-1 in the Cuu Long Basin offshore Vietnam. Both Blocks are contiguous to
the Bach Ho field, which is producing approximately 250,000 barrels of oil per
day ('BOPD') and 150 million cubic feet of gas per day ('MMCFD'), and the Rang
Dong field, which is producing approximately 45,000 BOPD and 55 MMCFD,
predominantly from the Basement.

Review of 2003 results

In February, the final well in the initial exploration programme, the Ca Ong
Doi-1X well on Block 9-2, was plugged and abandoned after drilling downflank
from the structural crest. The conclusion of this well marked the end of the
period in which the exploration costs of SOCO Vietnam were carried. The Group
funded its 50% share of the costs of the three vertical wells and the one
deviated sidetrack well subsequently drilled during the year.

The 2003 exploration drilling programme began with two wells being drilled on
Block 16-1. The first well was a follow-up to the 2002 Voi Trang-1X discovery
well, which tested at a maximum sustained rate of approximately 3,500 BOPD from
a section that included both Oligocene and Basement intervals.  The follow-up
well was primarily designed to test the Basement interval in which a collapsed
borehole appeared to lead to inconclusive test results in the original
discovery. The well was plugged and abandoned after neither the Basement
interval nor the Oligocene interval yielded commercial hydrocarbons.

The consortium's next Basement well was drilled on Prospect 'B', a relatively
small structure, with the primary objective of completing a low cost Basement
test that would fulfil the work commitments on the Block. Like most other Block
16-1 wells, the well encountered good oil shows in the Basement and the
overlying Oligocene section; however, the well did not encounter productive
fractures in Basement and was plugged and abandoned without being tested.

The rig was then moved to Block 9-2 to drill the Ca Ngu Vang-2X ('CNV-2X') well,
an appraisal of the CNV-1X vertical discovery well drilled in 2002 that tested
at 3,100 BOPD and 7.9 MMCFD, a combined rate of 4,500 barrels of crude
equivalent per day.  Although the CNV-2X well did not flow during testing, it
was a success by two important measures - confirming the extent of the structure
and extending the known depth of the oil column. The well penetrated an oil
column of approximately 1,000 metres and it reached a measured depth of 5,068
metres without encountering water.

In a quest for the possibility of an early declaration of commerciality but
without a positive profile of producing fractures in the CNV structure, the
CNV-2X was plugged back to 2,500 metres where a deviated sidetrack section
designated as the CNV-2XST began drilling. Oil shows were encountered throughout
the Basement section over a total measured depth interval in excess of 1,400
metres extending the known area of oil in the CNV structure to approximately
four kilometres from the original discovery well. But like the CNV-2X well, the
CNV-2XST, the final well in the 2003 Vietnam drilling programme, did not
encounter a significant producing fracture system and consequently did not flow.

Subsequent events and 2004 outlook

This year efforts will be focused on gearing up for the next major multi-well
drilling campaign involving both Blocks, which may get under way in late 2004
but is more likely to begin in 2005. Lead time notwithstanding, provisional site
surveys, rig availability surveys and identification of equipment requirements
are already completed or well under way.

Ongoing studies regarding the reservoir characterisations of existing
discoveries will be utilised in conjunction with reprocessing of existing
seismic to better image the Basement fractures.  Pre Stack Depth Migration, a
technology that uses velocity information to improve the seismic image and one
that has been applied very successfully in Vietnam, will be employed. The
velocity information required was not available for the first phase of drilling.
Post-drilling, seismic processing using the velocity data from the wells will
allow better imaging of the Basement and mapping of the fracture systems, better
well targeting and improved predictability. Additional 3D seismic will be
acquired on both Blocks 16-1 and 9-2, as drilling successes on deeper targets
within the Cuu Long Basin have significantly enhanced the prospectivity of
several additional leads.

MONGOLIA

Mongolia's Tamtsag Basin is a rank frontier exploration area in which the Group,
primarily through its wholly owned subsidiary, SOCO Tamtsag Mongolia ('SOTAMO'),
holds an approximate 85% working interest in production sharing contracts ('PSCs
') over Contract Areas 19, 21 and 22. To date the Group has drilled only 27
wells (including one on Contract Area 20, prior to its relinquishment) in an
area of approximately 26,000 square kilometres.

During the year, the Group drilled four exploration wells and completed a
discovery drilled in 2002. The 2002 completion and 2003 discoveries were in the
Zuunbayan interval, a new productive horizon in the SOTAMO Contract Areas. The
Zuunbayan is also productive in the adjacent Chinese basins, notably the Hailar
Basin, the continuation of the Tamtsag Basin into China where a major discovery
was reported in 2003. In contrast with the Tsagaantsav interval in which
SOTAMO's previous discoveries were made, the Zuunbayan reservoir is more
predictable, has better quality and should have improved productivity due to a
higher gas content and lower wax content.

Because of the region's isolation and harsh climate, maintaining the Group's
drilling programme throughout the Basin and pilot production programme in the
southeastern quadrant of Contract Area 19 is a test of personnel and material.
However, the Basin has a proven petroleum system and is adjacent to what is
arguably soon to be the world's largest market for crude oil. The key moving
forward is proving up more reserves and achieving a level of oil production that
can support a more aggressive drilling campaign.

Huabei Oilfield Services ('Huabei'), the Chinese company providing the drilling
services, has earned the right through providing reduced contract drilling rates
to take a pro rata working interest participation of 10% in the PSCs. A 5%
working interest is being carried by the Group through the exploration phase for
Petrovietnam, the Vietnamese national oil company.

Crude oil produced from the pilot production programme in Contract Area 19 is
sold at world prices under a contract with China National United Oil
Corporation. 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.

Review of 2003 results

Drilling began in July when the 19-18 well was drilled to test a new fault block
offsetting the 19-16 well drilled last year. The well encountered more than 30
metres of good oil shows, penetrating both Tsagaantsav and Zuunbayan formations
with log results indicating pay in both. The well was drilled to a total depth
of 2,069 metres, perforated and fracture stimulated in the Lower Tsagaantsav in
an interval from 1,600 to 1,670 metres. After the unexplained recovery of water
from the Tsagaantsav interval, the well was suspended for the winter and will be
recompleted in 2004.

Back to back rank exploration wells were then drilled to test Tsagaantsav
prospects on Contract Areas 21 and 22. Neither encountered pay and both were
plugged and abandoned.

The 2003 exploration programme concluded in October with the 19-19 well being
drilled to a depth of 2,560 metres. This well is the first to encounter stacked
Zuunbayan pay zones in the SOTAMO Contract Areas.  Three Zuunbayan zones were
tested without stimulation and the Tsagaantsav pay zone could not be tested. The
two upper Zuunbayan intervals were swab tested and yielded a combined rate of
210 BOPD. Testing operations were curtailed due to the onset of severe winter
weather. This well was put on production as part of the pilot production
programme. Workovers in Contact Area 19 continued throughout most of the year
and will continue in order to maximise year round production capability from the
pilot production programme.

Subsequent events and 2004 outlook

In December 2003, the Mongolian Government passed legislation that allowed the
extension of PSCs in the country to operators who met certain conditions -
SOTAMO was one of these operators. As a result, SOTAMO applied to the Petroleum
Authority of Mongolia ('PAM') for the full five year extension of its three PSCs
in the Tamtsag Basin. In January of 2004, PAM granted SOTAMO's extension
request.

The Group plans to focus its future activity on the Zuunbayan reservoir. A 3D
seismic programme is under way to acquire additional data on the productive
trend established by the discoveries. A multi-well drilling programme is planned
to follow once the interpretation of the acquired seismic is complete.

The Group continues to be in discussion with interested parties concerning
participation in the Mongolia project.  Although recent drilling successes both
in China and in the Tamtsag Basin have increased interest in the Group's
holdings, it is impossible to ascertain the eventual outcome of any of these
discussions.

THAILAND

Through its wholly owned Thailand subsidiary, the Company operates and holds a
100% interest in Block B8/38 located offshore in the Gulf of Thailand. This
Block contains an undeveloped small field crude oil discovery and has remaining
exploration potential.

Subsequent events and 2004 outlook

The Group is considering various options to progress work on this Block. These
options include discussions with various interested parties to farm-in.
Personnel in the Thailand office continue to act as facilitators with our
Thailand partners in Vietnam in addition to overseeing operator obligations on
Block B8/38.

PRODUCTION AND DEVELOPMENT

Production in both major producing areas was lower as crude oil production net
to the Group's working interests fell in 2003 to 5,409 BOPD from 6,203 BOPD the
previous year.  The Group derived 72% (3,896 BOPD) of its 2003 production from
the East Shabwa Development Area (East Shabwa) in Yemen.  Production from the
Didon field in the offshore Tunisian Zarat Permit contributed 1,101 BOPD (20%)
to production totals for the year. The pilot production programme in the Tamtsag
Basin of Mongolia increased output slightly with crude production rising to 412
BOPD from 380 BOPD last year.

YEMEN

The production statistics given above notwithstanding, with 100% exploration
drilling success in the Basement interval, from wells that had initial
production rates ranging from 1,700 BOPD to more than 6,000 BOPD, Block 10 is
also one of the more significant exploration areas for the Group.  Success to
date from Basement exploration has resulted in an 87% year end upgrade to proven
and probable reserves on the Block.

East Shabwa crude oil production is transported by pipeline and commingled with
the approximate 270,000 BOPD produced on the neighbouring Masila Block before
being transported by pipeline onward to the Ash Shihr export terminal on the
Yemen coast. The Group's share of the crude produced is sold under a 12 month
contract into the spot market.

SOCO holds its interests in East Shabwa through its 58.75% majority shareholding
in Comeco Petroleum, Inc. ('Comeco') which holds a 28.57% direct interest in
Block 10. A subsidiary of Occidental Petroleum, which is also a co-venturer in
East Shabwa with a 28.57% interest, holds the remaining minority interest in
Comeco. Total E&P Yemen, with an interest equal to that of Comeco, is the
concession operator and a subsidiary of Kufpec, the Kuwaiti foreign oil company,
holds the remaining 14.29% interest.

Review of 2003 results

Production to date has been primarily from the Cretaceous clastic Biyad
reservoir. Increasing water cuts are typical of producing wells from this
interval in this area of Yemen. Currently East Shabwa is producing approximately
three barrels of water for every barrel of crude oil produced. Thus, adding
disposal wells and water-handling capability is crucial to maintaining
production levels. Eight wells were drilled during the year - three Basement
producers in the Kharir field, including the deepening of Kharir 101 which has
not been tested, one Biyad producer at the Atuf field, three water injectors and
one shallow water source well.

Although Phase III of the development programme continued throughout the year,
adding additional water-handling capabilities and both producing and disposal
wells, the excitement in East Shabwa arose as a result of multiple Basement
discoveries in the Kharir field. All of these wells were vertical wells.

The KHA 210 Basement well was drilled in December 2002 and commenced production
in July, producing at approximately 1,700 BOPD. The KHA 105 Basement well,
located approximately five kilometres from the KHA 210 well, was brought on line
in September at 6,000 BOPD. The subsequent KHA 106 Basement well, located over
two kilometres from each of the previous discoveries, tested at approximately
2,500 BOPD. Another Basement well, the KHA 101 which was deepened from an
existing Biyad discovery, is shut-in awaiting testing in 2004.

The Basement discoveries have a reasonably high gas-to-oil ratio and produce
little or no water. Since this phenomenon is atypical of production in this
region, facilities have not been designed to handle a large volume of associated
gas. Accordingly, the Basement wells have been produced at lower rates to reduce
the associated gas production.

Subsequent events and 2004 outlook

The rig was released to drill on an adjacent Block towards the end of 2003. As a
consequence, drilling is not expected to begin again until the second quarter of
2004 but will continue throughout the remainder of the year. Additional
appraisal wells are planned to evaluate the Basement oil in place so that an
extensive reconfiguration of production facilities can be implemented within the
next two years.  Partners are in discussion regarding plans to accelerate the
Basement appraisal and development programme.

TUNISIA

The Group's Tunisia holding consists entirely of a 22.22% non-operated working
interest in the Zarat Permit located 75 kilometres offshore eastern Tunisia in
the Gulf of Gabes. The Zarat Permit has one commercial declaration, the Didon
field, from which crude oil is produced into a floating production, storage and
off-loading vessel ('FPSO'). Production from the field is sold into the spot
market.

Review of 2003 results

As the result of a successful appraisal well drilled in the Didon producing
field in January 2003, year end reserves have again been increased. The Didon 4H
well tested at 3,200 BOPD from a horizontal section in the El Gueria reservoir
and was suspended pending completion of future field development plans and
co-ordination with scheduled production downtime. In the fourth quarter, the
FPSO was taken out of service for mandatory marine maintenance and
re-certification. During this period, the appraisal well was completed and a
subsea tree installed.

Subsequent events and 2004 outlook

Re-certification of the FPSO was completed in February 2004. Production from the
Didon field recommenced in late February. Work is in progress to tie-in the
Didon 4H well to the existing production riser with production from this well
expected to commence in March.

Future development plans call for the installation of a small production
platform to accommodate production from the Didon field, which would be
augmented by an additional producing well to be drilled on the crest of the
structure. A permit wide 3D seismic acquisition programme is planned for the
summer of 2004 to firm up potential locations for a commitment exploratory well
required to hold the Permit.





Consolidated profit and loss account for the year to 31 December 2003
                                                                                 2003               2002
                                                                               £000's              £000's

Turnover                                                                       25,490             26,043
Cost of sales                                                                 (13,800)           (13,374)


Gross profit                                                                   11,690             12,669
Administrative expenses                                                        (2,517)            (2,305)
Exceptional write off of exploration expenditure                                    -               (595)

Profit on ordinary activities before finance charges                            9,173              9,769
Investment income                                                                 815              1,188
Interest payable and similar charges                                              (37)              (180)

Profit on ordinary activities before taxation                                   9,951             10,777
Tax on profit on ordinary activities                                           (4,114)            (5,266)

Profit for the financial year                                                   5,837              5,511

Earnings per share
Basic                                                                             8.4p               8.0p

Diluted                                                                           7.4p               7.1p



All operations of the Group and the Company continued throughout both periods.




Consolidated statement of total recognised gains and losses for the year to 31
December 2003


                                                                                    2003                2002
                                                                                   £000's              £000's

Profit for the financial year                                                      5,837               5,511
Unrealised currency translation differences                                      (14,354)            (14,238)

Total recognised losses relating to the year                                      (8,517)             (8,727)






Balance sheets as at 31 December 2003
                                                                       Group                    Company
                                                              2003        2002           2003       2002
                                                             £000's      £000's         £000's     £000's
Fixed assets
Intangible assets                                           82,311      68,314            -          -
Tangible assets                                             18,973      19,324             35         73
Investments                                                  1,486       1,475         72,326     64,779

                                                           102,770      89,113         72,361     64,852
Current assets
Stocks                                                          40       1,460           -           -
Debtors                                                      4,763       5,445            721        504
Cash at bank and in hand                                    32,898      51,495            387      2,653
                                                            37,701      58,400          1,108      3,157

Creditors: Amounts falling due within one year              (8,586)     (7,454)          (173)      (290)

Net current assets                                          29,115      50,946            935      2,867

Total assets less current liabilities                      131,885     140,059         73,296     67,719

Provisions for liabilities and charges                      (3,279)     (3,374)           -          -

Net assets                                                 128,606     136,685         73,296     67,719

Capital and reserves
Called-up equity share capital                              14,396      14,269         14,396     14,269
Share premium account                                       41,325      40,590         41,325     40,590
Other reserves                                              34,537      34,961         (424)         -
Profit and loss account                                     38,348      46,865         17,999     12,860

Equity shareholders' funds                                 128,606     136,685         73,296     67,719





Consolidated cash flow statement for the year to 31 December 2003
                                                                                   2003                2002
                                                                                  £000's              £000's

Net cash inflow from operating activities                                        16,610              18,913

Returns on investments and servicing of finance
Interest received                                                                   677                 836
Interest paid and similar charges                                                   (17)                (14)
                                                                                    660                 822

Taxation paid                                                                    (4,169)             (5,332)

Capital expenditure and financial investment
Purchase of intangible fixed assets                                             (21,651)             (8,399)
Purchase of tangible fixed assets                                                (6,116)             (7,499)
Purchase of own shares by employee benefit trust                                   (583)               (611)
Purchase of own shares into treasury                                               (424)                  -
                                                                                (28,774)            (16,509)

Cash outflow before management                                                  (15,673)             (2,106)

of liquid resources and financing

Management of liquid resources
Decrease in funds placed on short term deposit                                        -               2,690

Financing
Issue of ordinary share capital                                                     862                 170

(Decrease) increase in cash in the year                                         (14,811)                754





                             SOCO International plc
            Preliminary results for the year ended 31 December 2003


Notes to the accounts

1.   Basis of accounting
     
The preliminary accounts have been prepared under the historic cost convention
and in accordance with applicable accounting standards and the Statement of
Recommended Practice 'Accounting for Oil and Gas Exploration, Development,
Production and Decommissioning Activities'.  The preliminary accounts have been
prepared on the same basis as the statutory accounts for the year ended 31
December 2002 except that during the year the Group adopted Urgent Issues Task
Force Abstract 37 'Purchases and Sales of Own Shares' whereby the consideration
paid for own shares into treasury is deducted in arriving at shareholders'
funds, which had no effect on the Group's net assets and results of previous
years.


2.   Basis of preparation

The financial information presented above does not constitute statutory accounts
within the meaning of section 240 of the Companies Act 1985.  An audit report
has not yet been issued on the accounts for the year ended 31 December 2003, nor
have they been delivered to the Registrar of Companies.  The comparative
financial information for the year ended 31 December 2002 has been derived from
the statutory accounts for that year.  Those statutory accounts, upon which the
auditors issued an unqualified opinion, have been delivered to the Registrar of
Companies.


3.   Dividend

The Directors are not recommending the payment of a dividend.


4.   Tax on profit on ordinary activities
          

Analysis of charge
                                                                           2003             2002
                                                                         £000's           £000's
Current tax
UK Corporation tax at 30% (2002 - 30%)                                       -                -
Overseas taxation                                                        4,722            4,315
                                                                         4,722            4,315
Adjustments in respect of previous years:
UK Corporation tax at 30% (2002 - 30%)                                       -                -
Overseas taxation                                                         (201)             260
                                                                         4,521            4,575
Deferred taxation
Origination and reversal of timing differences                            (407)             691
                                                                         4,114            5,266


Deferred taxation includes recognition of a net deferred tax credit of £181,000
(2002 charge - £1,206,000) in respect of the Tunisia interest and a net deferred
tax credit of £126,000 (2002 - £515,000) in respect of the Yemen interest.
There is no unprovided deferred taxation at either balance sheet date except for
an unprovided deferred tax asset arising in respect of tax losses that are not
expected to be utilised.


5.   Earnings per share

The calculation of the basic earnings per share is based on the profit for the
financial year and on 69,337,797 (2002 - 69,200,100) ordinary shares, being the
weighted average number of ordinary shares in issue and ranking for dividend
during the year, excluding 2,227,342 (2002 - 1,947,808) ordinary shares of the
Company held by the Group.

The calculation of the diluted earnings per share is based on the profit for the
financial year and on 78,577,437 (2002 - 77,705,708) ordinary shares, being the
weighted average number of ordinary shares in issue and ranking for dividend
during the year including 2,227,342 (2002 - 1,947,808) ordinary shares of the
Company held by the Group and 7,012,298 outstanding share options and warrants
(2002 - 6,557,799) that have a diluting effect on earnings per share.


6.   Reconciliation of movements in Group equity shareholders' funds

                                                                           2003             2002
                                                                         £000's           £000's

Opening equity shareholders' funds                                      136,685          143,489
Profit for the financial year                                             5,837            5,511
Unrealised currency translation differences                             (14,354)         (14,238)
New shares issued                                                           862            1,923
Movements in other reserves                                                (424)               -
Closing equity shareholders' funds                                      128,606          136,685



The Group's unrealised currency translation differences arise on retranslation
of the balance sheets of overseas operations, which are denominated in US
dollars, at rates ruling as of year end.


7.   Reconciliation of operating profit to operating cash flows

                                                                           2003             2002
                                                                         £000's           £000's

Operating profit                                                          9,173            9,769
Depreciation, depletion and amortisation                                  4,848            6,662
Exceptional write off of exploration expenditure                              -              595
Decrease in stocks                                                          268               57
(Increase) decrease in debtors                                             (508)           1,203
Increase in creditors                                                     2,829              693
Decrease in provisions                                                        -              (66)
Net cash inflow from operating activities                                16,610           18,913



8.   Analysis and reconciliation of net funds
     
                                           As at 1                                     As at 31
                                           January         Cash         Exchange       December
                                              2003         flow         movement           2003
                                            £000's       £000's           £000's         £000's
Net funds - Cash at bank and
in hand                                     51,495     (14,811)          (3,786)         32,898



9.   Subsequent events

In March 2004 the Group's 100% owned subsidiary, SOCO North Africa Limited, and
Oilinvest (Netherlands) B.V. completed a transaction with a subsidiary of Joint
Stock Bank of the Gas Industry Gazprombank whereby Gazprombank acquired the
entire issued share capital of OILSOC Investment Company Limited, a company
which was owned by Oilinvest (55%) and SOCO North Africa (45%).  OILSOC assets
consist entirely of its 20% shareholding in ODEX Exploration Limited, a specific
purpose upstream joint venture formed by Oilinvest and SOCO North Africa.  Under
the terms of the transaction SOCO North Africa received approximately US$2.5
million for its net interest in OILSOC.  Following completion of the
transaction, the ODEX shareholders are Oilinvest (46%), SOCO North Africa (34%)
and Gazprombank via its OILSOC purchase (20%).


10.  Preliminary results announced


Copies of the announcement will be available from the Company's head office,
Swan House, 32 - 33 Old Bond Street, London, W1S 4QJ.  The Annual Report and
Accounts 2003 will be posted to shareholders in due course.



                      This information is provided by RNS
            The company news service from the London Stock Exchange