Marine XIV Farm-in Agreement

RNS Number : 9943C

Soco International PLC

09 September 2008

 



SOCO International plc 

('SOCO' or 'the Company')

Marine XIV Farm-in Agreement 

The Company announces that its subsidiary, SOCO Exploration and Production Congo S.A. ('SOCO EPC'), has entered into a farm-in agreement to acquire a 29.4% working interest in the Marine XIV Block, offshore the Republic of Congo (Brazzaville), from PA Resources Congo SA (“PA Congo”). SOCO EPC will also become the operator of the Block.  PA Congo will retain a 12.5% interest and the national oil company, Société Nationale des Pétroles du Congo, will have a 15% carried interest. The remaining interests will be held by fellow farm-in participants and SOCO’s Marine XI joint venture partners, Raffia Oil SARL (21.55%) and a subsidiary of Lundin Petroleum (21.55%).

 

The three farm-in participants will pay their respective shares towards PA Congo’s past costs, one hundred percent of the costs for a 3D seismic programme to be acquired during the first exploration period and one hundred percent of the dry hole well costs for the first well to be drilled on the Marine XIV Block, subject to a maximum cost, in total, of US$30 million. Additional costs will be paid should the farm-in participants participate beyond the first exploration period. All other costs will be borne by all participants according to their paying interests.

 

The Marine XIV Block is located in the Lower Congo Basin in shallow water, adjacent to the Company’s Marine XI Block, and will complement SOCO’s activity both operationally and technically. The Block comprises three discontinuous sections located in water depths ranging up to 110 metres and covers approximately 265 square kilometres. Previous exploration activity on the Block has resulted in some oil discoveries. 

 

The assignment of interests is subject to approval of the appropriate regulatory authorities of the Government of the Republic of Congo (Brazzaville).

 

09 September 2008

ENQUIRIES:

 

SOCO International plc
Roger Cagle	Deputy Chief Executive and Chief Financial Officer	Tel: [phone]
Pelham Public Relations
James Henderson		Tel: [phone]
Alisdair Haythornthwaite		Tel: [phone]

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, Thailand, the Republic of Congo (Brazzaville), the Democratic Republic of Congo (Kinshasa) and Angola, with production operations in Vietnam and Thailand.  

 

END

 

 

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