Interim Results

Soco International PLC
4 September 2001




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



             Interim Results for the 6 months ended 30 June 2001



SOCO is an international oil and gas exploration and production company,
headquartered in London, with operations in Mongolia, Yemen, Thailand,
Tunisia, Vietnam and North Korea and a sale pending on its Russia operations.
SOCO today announces interim results for the 6 months  ended 30 June 2001.



HIGHLIGHTS



*                    Record production as daily averages increased almost 10%
                     to 9,362 BOPD (2000: 8,525 BOPD)



*                    Turnover 5% ahead at £21.4 million (2000: £20.4 million).



*                    Net profit of £7.0 million (2000: £8.7 million).



*                    Net cash of £24.6 million at half year.



*                    Disposal of Russia assets for $50 million, further
                     strengthening balance sheet.



*                    Positive results from first two wells of Mongolia
                     drilling programme



*                    Active drilling programme planned for next 12 months in
                     Vietnam, Mongolia, Yemen and Tunisia.



Ed Story, Chief Executive of SOCO, said:



'The first half of the year, despite an apparent lack of excitement, has been
very important for us as we continue to position the Company both
operationally and financially for its next growth phase.  We expect
significantly more drilling activity and, following the Russia disposal, we
will be looking to invest in projects offering significant opportunities  for
the Company.'



                                                              4 September 2001


ENQUIRIES:
SOCO International plc                    Tel:  [phone] (today)
Ed Story, Chief Executive                 Tel:  [phone] (thereafter)
Roger Cagle, Chief Financial Officer


College Hill                              Tel:  [phone]
James Henderson
Archie Berens


                           SOCO International plc

             Interim results for the 6 months ended 30 June 2001



                CHAIRMAN'S AND CHIEF EXECUTIVE'S STATEMENT





INTRODUCTION



First half results for the Company were very good although operational news
flow was sparse as the Company progressed toward major drilling campaigns
planned over the succeeding 12 months.  Shortly after the first half, SOCO
made good on its promise to capture value for its shareholders as it disposed
of its Russia interests for US$50 million and built its cash reserves for
re-investment in promising areas.



The Company continued to build production during the first half of the year as
daily average production net to the Company's working interest increased
approximately 10% from the same period last year and approximately 6% over the
year 2000 average.





RESULTS



The Company reached record period production levels in the first half of 2001
as daily production net to its working interest averaged 9,362 barrels of oil
per day (BOPD).  As a result, the second highest period turnover in the
Company's history was achieved as turnover increased to £21.4 million compared
to £20.4 million for the same period last year and £45.9 million for the full
year 2000.



Profits before tax declined from £10.8 million reported for the first half of
2000 to £9.0 million for the first six months of 2001.  Net profits were also
down from the prior period at £7.0 million versus £8.7 million.



Reflecting the increase in production, the strengthening of the Russian
currency and increased application of western technology in Russia, operating
costs excluding depletion and abandonment increased substantially over the
same period last year rising from  £5.5 million to £8.2 million.  Over 92%, £
2.5 million, of the increase in operating costs was attributable to Russia
operations.  Consequently, direct production costs, primarily as a result of
Russia operations, were approximately US$7.00 per barrel reflecting a rise
over both full year (approximately US$5.80 per barrel) and first half 2000
(approximately US$5.50 per barrel).  Costs of depletion and abandonment were
relatively stable period on period at £4.0 million for the first half of this
year as compared to £4.2 million for the same period last year.



Payment of the Vietnam Block 9-2 signature bonus and subsequent seismic
acquisition programme contributed to a drop in the Company's cash balances to
£31.0 million from £38.0 million reported at year-end.  Cash balances net of
debt associated with the Russia asset were £24.6 million compared to £33.0
million at year-end.






OPERATIONS



Exploration/Development



Whereas the Company had a very active drilling campaign in the first half of
2000, the first half of this year, with the exception of the development
drilling programme in the Ozernoye field in Russia, has been spent in
preparation for active drilling campaigns in Vietnam, Mongolia, Yemen and
Tunisia over the next twelve months.  The Mongolia/China border was closed for
most of the period due to foot and mouth disease precautions resulting in the
delay of the commencement of the Mongolia four well drilling campaign until
July.  Approximately 46% of SOCO's acreage in the Tamtsag Basin in Mongolia
was relinquished, subject to governmental review.  The remaining acreage
includes the most prospective regions of the Contract Areas.  Contract Area 11
in the Gobi Basin was also relinquished, ending the Company's exploration
activities there after a seismic acquisition programme yielded few leads.



Although there was no drilling in the first six months in Mongolia, two wells
were drilled in record time in July and August. The 19-13 well, drilled on a
new structure of approximately 1,500 acres, spudded on 6 July.  This well, the
seventeenth well drilled by the Company in Mongolia, reached target depth of
2,311 metres on 22 July with drilling log analysis indicating a net productive
reservoir of approximately 55 metres in a gross interval from 1,968 metres to
2,284 metres.    On 29 July, the drilling rig spudded the second well in the
expected four well campaign, the 19-14.  Located approximately 1.5 kilometres
northeast in a contiguous fault block to the 19-13 well, the 19-14 well was
drilled to a depth of  2,376 metres in mid-August having encountered oil shows
in a 286 metre interval from 2,051 metres to 2,337 meters in the Upper
Tsagantsav Sands.  Early indications are that these two wells are among the
best wells drilled to date in Mongolia.  A workover rig and fracture
stimulation crews will complete and fracture stimulate both wells prior to
production testing, which is expected in mid-September.  The third well is
currently being drilled on Contract Area 21 to test a new prospect in an area
in which previous drilling has encountered thick, high quality continuous sand
reservoirs.  The location of the remaining well to be drilled this year will
be determined at a later date.



Reconstruction of storage and production facilities that were damaged in last
year's fire began in June with the lifting of border restrictions and was
completed in August.  The 19-10 and 19-12 wells, which were drilled and
completed last year but not tested due to the lack of facilities, were put on
production in July and August and sales to China were re-initiated in August.
These wells, along with the 19-3 well that has been on periodic pilot
production since 1998, were producing at a combined rate of approximately 630
BOPD as of mid-August.  The 19-9 well, which was also drilled in 2000, is
expected to be put on production by the end of the third quarter following
installation of downhole equipment.



Petrovietnam, the Vietnamese national oil company, has a 5% interest, carried
through the exploration phase, in each of SOCO's Mongolia production sharing
contracts.  At the end of this year's drilling programme, Huabei Oilfield
Services, a Chinese company providing the drilling services to the Company in
Mongolia , will earn the right to a pro rata working interest participation of
10% in Contract Areas 19, 21 and 22.



Processing and interpretation of both 2D and 3D seismic, which was acquired in
Yemen at the end of 2000 and earlier this year, is ongoing in preparation for
a drilling programme which is expected to commence later this year.  Planning
and tendering for the drilling campaign has commenced.  Upgraded Atuf field
facilities, which provide additional water handling capabilities and thus
increase production capability, commenced operations in August.  Expansion of
export facilities on the adjacent Masila block will ultimately lead to higher
export capabilities for the East Shabwa Development Area, where the Company's
project is located.




As reported in the Subsequent Events section of this report, the Company
entered into an agreement with a subsidiary of OAO Lukoil, one of Russia's
largest energy companies, whereby SOCO sold the entirety of its Russia
interest (see Note 5 to the interim accounts).  However, prior to the
effective date of this agreement, activity associated with development of the
northern portion of the Contract Area in the Volga-Urals region of Russia was
the focus for the year to date.  Construction on a 35 kilometre pipeline was
completed in the first half of this year but separation, metering and
facilities are still under construction.  Commissioning of the line and
related facilities is expected late in the third quarter of 2001.  In the
interim, production from seven newly drilled wells and re-entered discovery
wells in the Ozernoye field, is being trucked to an area pipeline collecting
system.  Two rigs are working in Ozernoye, which holds approximately 60% of
Contract Area reserves, as the first phase of a multi-well development
drilling programme that commenced earlier this year continues.



As was reported in the 2000 Annual Report and Accounts, the Company paid the
signature bonus on Block 9-2, an exploration Block offshore Vietnam, in
February 2001.  The Block was awarded to the Company in December 2000.  With
this transaction, SOCO has interests in two Blocks, the other being Block
16-1, in the highly prospective Cuu Long Basin that has been an area of
significant discoveries during the past several months.  Both Blocks are
contiguous to several producing fields, including the Bach Ho field that is
currently producing approximately 240,000 BOPD.



The Hoan Vu Joint Operating Company, with project oversight of Block 9-2,
initiated and completed a 650 square kilometre 3D seismic acquisition
programme in May.  The data, which is currently being processed, is of high
quality for imaging basement and tertiary structures which had previously been
identified from 2D seismic data.  In the Block 16-1 Hoang Long Joint Operating
Company, Pre Stack Depth Migration seismic processing will be conducted during
the next three months to improve the imaging of the basement structures in
Block 16-1.



Planning is ongoing for two wells to be drilled on each Block under a joint
drilling operation during 2002.  The Company should be able to realise
significant cost savings by combining the drilling programmes.



Production



Production net to the Group's working interest averaged 9,362 BOPD for the
first six months of the year compared to an average of 8,525 BOPD for the same
period last year and 8,810 BOPD for the full year of 2000.  The Russia asset,
which is subject to disposal under a Purchase and Sale Agreement, contributed
3,212 BOPD, approximately 34% to this total.



Production net to the Company's working interest from the East Shabwa
Development Area in Yemen increased approximately 10% to 5,110 BOPD from 4,653
BOPD for the same period during the previous year (4,805 BOPD for the full
year of 2000).  As a result of operational problems which have continued from
the latter part of last year into the first half of this year, production
declined period on period in Tunisia, dropping from 1,553 BOPD to 1,040 BOPD
(approximately 1,300 BOPD for the full year of 2000).  Russia production grew
approximately 40% from 2,314 BOPD reported for the first half of 2000 (2,665
BOPD for the full year 2000).



With the sale of the Russia asset, production is expected to fall during the
last six months of 2001 although the decline should be partially mitigated by
better performance in Tunisia due to a facilities upgrade and re-initiation of
crude sales from Mongolia.





SUBSEQUENT EVENTS



On 17 August 2001, the Company entered into a Purchase and Sale Agreement with
a subsidiary of OAO Lukoil wherein it disposed of all its interests in Russia
for US$50 million.  The disposal is conditional upon approval of the Company's
shareholders and approval by the Russian Anti-Monopoly Committee.  An
Extraordinary General Meeting is scheduled to be held on 6 September 2001.





PROSPECTS



The Company expects to continue with a robust drilling programme throughout
the next 12 months.  Drilling in Mongolia continues and an appraisal well is
expected to be drilled in Tunisia on the producing Didon structure in the Gulf
of Gabes on the Zarat Permit in which SOCO has a 22.22% working interest.
Phase 3 drilling at the producing Kharir field in Yemen comprising at least
six wells is expected to commence in the fourth quarter and continue through
the first half of 2002.  The Vietnam drilling programme with four wells
drilled back-to-back is expected to begin mid-year 2002.





OUTLOOK



The Company has sought to combine stable producing assets with exploitation
projects and frontier exploration.  Throughout its history the Company has
stated its intent to maintain a portfolio of projects with continual focus on
recognising opportunity, capturing potential and realising value and thus
continuously upgrading its portfolio.



In view of the current oil price environment and the increased likelihood of
other projects' availability, the Company believes that this is an opportune
time to raise funds for application in other areas of focus, which provide low
cost, long term opportunities at reasonable levels of risk.



The Group's forward strategy is unchanged.  Our strong balance sheet enables
us to progress our portfolio without unduly leveraging other assets and the
current period of relatively stable prices allows SOCO to accelerate and thus
lock in some of the value unrecognised in its portfolio.  We appreciate your
interest and continued support of the Company.




Patrick Maugein                         Chairman
Ed Story                                Chief Executive



4 September 2001




Consolidated profit and loss account



                                    (unaudited)       (unaudited)
                                     six months        six months          year
                                          ended             ended         ended
                                      30 Jun 01         30 Jun 00     31 Dec 00
                              Notes      £000's            £000's        £000's

Turnover                                 21,429            20,429        45,852
Cost of sales                          (12,045)           (9,791)       (21,830)

Gross profit                              9,384            10,638        24,022
Administrative expenses                 (1,000)             (795)       (1,973)

Operating profit                          8,384             9,843        22,049

Investment income                           769               988         2,102
Interest payable and similar              (142)              (26)          (62)
charges

Profit on ordinary activities             9,011            10,805        24,089
before taxation
Tax on profit on ordinary         4     (1,982)           (2,073)       (6,524)
activities

Profit for the financial                  7,029             8,732        17,565
period

Earnings per share
Basic                             1       10.2p             12.7p         25.6p
                                                                          

Diluted                           1        9.4p             12.3p         24.3p







Consolidated statement of total recognised gains and losses



                                    (unaudited)       (unaudited)
                                     six months        six months       year to
                                          ended             ended
                                      30 Jun 01         30 Jun 00     31 Dec 00
                                         £000's            £000's        £000's

Profit for the financial                  7,029             8,732        17,565
period
Unrealised currency                       7,464             6,077         7,372
translation differences
Total recognised gains for               14,493            14,809        24,937
the period







Consolidated balance sheet






                                       (unaudited)      (unaudited)
                                        30 Jun 01        30 Jun 00    31 Dec 00
                                           £000's           £000's       £000's



Fixed assets

Tangible assets                           106,036           78,670       94,064
Investments                                 1,622              368          368

                                          107,658           79,038       94,432

Current assets

Stocks                                      1,205            1,262        1,199
Debtors                                    11,052            6,146        7,869
Investments                                 4,595           18,728       22,252
Cash at bank and in hand                   26,398           16,139       15,795

                                           43,250           42,275       47,115

Creditors: Amounts falling due            (5,869)          (5,817)     (12,668)
within one year

Net current assets                         37,381           36,458       34,447

Total assets less current                 145,039          115,496      128,879
liabilities

Creditors: Amounts falling due
after more than one year                  (6,399)          (2,642)      (5,021)
                                          
Provisions for liabilities and            (1,329)            (714)      (1,040)
charges
Minority interests                              -            (191)            -

Net assets                                137,311          111,949      122,818


Capital and reserves
Called-up equity share capital             14,026           13,828       14,026
Share premium account                      38,910           38,367       38,910
Other reserves                             34,961           34,961       34,961
Profit and loss account                    49,414           24,793       34,921

Shareholders' funds                       137,311          111,949      122,818








Consolidated cash flow statement



                                      (unaudited)      (unaudited)
                                      six months       six months         year
                                           ended            ended           to
                                       30 Jun 01        30 Jun 00    31 Dec 00
                                Notes     £000's           £000's       £000's

Net cash inflow from operating      2     10,079           15,226       30,902
activities

Returns on investments and
servicing of finance

Interest received                            969            1,036        1,947
Interest paid                              (329)              (6)        (290)

                                             640            1,030        1,657

Taxation paid                            (2,732)          (1,933)       (6,794)

Capital expenditure and
financial investment
Purchase of tangible fixed              (16,368)         (10,666)       (22,814)
assets
Purchase of own shares by                (1,253)                -            -
employee benefit trust

                                        (17,621)         (10,666)       (22,814)

Acquisitions and disposals
Sale of business                               -                -          507


Cash inflow (outflow) before
management of
liquid resources and financing           (9,634)            3,657        3,458

Management of liquid resources
(Increase) decrease in cash on      3     17,806            2,652        (884)
short term deposit

Financing
Issue of ordinary share capital                -                -          741
Issue of preference shares to                  -                6            8
minority interests
Bank loan due after more than       3      1,037              948        3,338
one year
                                           1,037              954        4,087


Increase in cash in the period      3      9,209            7,263        6,661











Notes



1.      Earnings per share

The calculation of basic earnings per share is based on the profit for the
financial period and on 68,927,433 (year ended 31 December 2000 - 68,591,969
and six months ended 30 June 2000 - 68,540,732) ordinary shares, being the
weighted average number of ordinary shares in issue and ranking for dividend
during the period, excluding 1,200,276 (year ended 31 December 2000 - 600,000
and six months ended 30 June 2000 - 600,000) ordinary shares of the Company
held by the Group.



The calculation of diluted earnings per share is based on the profit for the
financial period and on 74,382,485 (year ended 31 December 2000 - 72,416,560
and six months ended 30 June 2000 - 70,975,550) ordinary shares, being the
weighted average number of ordinary shares in issue and ranking for dividend
during the period, including 4,254,776 (year ended 31 December 2000 -
3,275,828 and six months ended 30 June 2000 - 1,834,818) outstanding share
warrants and options that have a diluting effect on earnings per share and
1,200,276 (year ended 31 December 2000 - 600,000 and six months ended 30 June
2000 - 600,000) ordinary shares of the Company held by the Group.





2.      Reconciliation of operating profit to operating cash flows


                                    six months        six months          year
                                         ended             ended         ended
                                     30 Jun 01         30 Jun 00     31 Dec 00
                                        £000's            £000's        £000's

Operating profit                         8,384             9,843        22,049
Depreciation and depletion               4,191             4,341         8,942
Movement in stocks                         102                93           169
Movement in debtors                    (2,023)               393       (1,194)
Movement in creditors                    (575)               556           936
Net cash inflow from                    10,079            15,226        30,902
operating activities






3.      Analysis and reconciliation of net funds


                                 as at                    exchange        as at
                             31 Dec 00    cash flow       movement    30 Jun 01
                                £000's       £000's         £000's       £000's
Cash at bank and in hand        15,795        9,209          1,394       26,398
                                              
Current asset investments       22,252     (17,806)            149        4,595
                                                                          
Bank loan due after more       (5,021)      (1,037)          (341)       (6,399)
than one year                   
Net funds                       33,026       (9,634)          1,202       24,594



Current asset investments are term deposits.





4.      Tax on profit on ordinary activities

The tax charge comprises:


                                 six months           six months           year
                                      ended                ended          ended
                                  30 Jun 01            30 Jun 00      31 Dec 00
                                     £000's               £000's         £000's

UK corporation tax at                     -                    -              -
30%

Current overseas                     3,755                 2,820          6,592
taxation

Deferred overseas                   (1,773)                (747)           (68)
taxation

                                      1,982                2,073          6,524


The deferred overseas taxation credit arises on the net of tax losses carried
forward, foreign tax credits carried forward and fixed asset timing
differences.





5.      Disposal of Russia interest

On 17 August 2001 the Group entered into a Purchase and Sale Agreement to
dispose of its 50% interest in Permtex, a Russian limited liability company,
through which the Group held its Russia interest.  During the six months ended
30 June 2001 that interest contributed £2.5 million (six months ended 30 June
2000 - £1.7 million) to Group operating profit and £2.5 million (six months
ended 30 June 2000 - £2.9 million) to Group operating cash flow.  The Group's
share of net assets held by the Russia interest at 30 June 2001 was £25.7
million (31 December 2000 - £22.3 million).





6.      Basis of preparation

The financial information presented above does not constitute statutory
accounts within the meaning of section 240 of the Companies Act 1985.  The
financial information for the year ended 31 December 2000 has been derived
from the statutory accounts for that year. Those statutory accounts, upon
which the auditors issued an unqualified opinion, were delivered to the
Registrar of Companies.



The interim accounts, which are unaudited, have been prepared on the basis of
the accounting policies set out in the Group's statutory accounts for the year
ended 31 December 2000.





7.      Dividend

The Directors do not recommend the payment of a dividend.





8.      Date of approval

The interim financial statements for the six months ended 30 June 2001 were
approved by the Directors on 3 September 2001.