Interim Management Statement

RNS Number : 3492U

Soco International PLC

14 May 2008

 



SOCO International plc

('SOCO' or the 'Company')

Interim Management Statement

SOCO presents its first Interim Management Statement for the period from 1 January 2008 to 13 May 2008.  

Operations

SE Asia

Vietnam

Block 16-1

TGD-1X-ST1

As at the date of this report, the Te Giac Den 1X side track well, initially targeting the expected high pressure, high temperature Oligocene interval on Prospect 'E', is at 5,096 measured depth. The Hoang Long Joint Operating Company is currently running logs prior to setting casing.    

TGT-6X

As at the date of this report, the Te Giac Trang ('TGT') appraisal well had reached its targeted measured depth of 3,437 metres. The well is currently being logged and preparations to test are ongoing.

TGT Development

The Reserve Assessment Report and Outline Development documents have been submitted to the Vietnamese authorities for review. These documents represent the supporting documentation for the Declaration of Commerciality for the TGT Field. The review process is ongoing with the relevant authorities at the date of this report.

Block 9-2

To date three development wells have been drilled on the Ca Ngu Vang oilfield and another well partially drilled and suspended pending installation of the unmanned platform. Once the platform and topsides have been installed and the drilling rig finishes work on the TGT-6X appraisal well, where it was redeployed to allow platform installation, the three existing development wells will be tied-back and completed and production will commence. The rig will then finish drilling and completing the fourth well and then continue with the planned four producer and two injector development drilling programme. Major facilities, equipment orders and installation proceeds apace to meet the planned onstream date within approximately 60 days.  At the date of this report the jacket is installed and the first of the two pipelines is being laid.

Thailand

Bualuang Field

The farm-in partner on the Bualuang field continued to move forward with the field development.  A wellhead platform has been installed and five producer wells and one water injection well have been drilled to date.  A floating production, storage and offloading facility has arrived in the field and should be ready to commence production operations by the end of the quarter.

Africa

Republic of Congo (Brazzaville)

Marine XI Farm-out Agreement
In March, the Company announced that its subsidiary, SOCO Exploration and Production Congo S.A. ('SOCO EPC'), entered into a farm-out agreement wherein it agreed to farm-out 8.5% of its interest in the Marine XI Block, offshore the Republic of Congo (Brazzaville), to Petrovietnam Exploration Production Corporation Ltd. SOCO EPC will remain as the operator with a 29% working interest in the Block. The remaining interests are held by Lundin Marine SARL (18.75%), Raffia Oil SARL (18.75%), the national oil company, Société Nationale des Pétroles du Congo (15%) and Africa Oil & Gas Corporation (10%).

The assignment of interests is subject to approval of the appropriate regulatory authorities of the Government of the Republic of Congo (Brazzaville), waivers of any third party preferential rights, and certain obligations of Petrovietnam. 

Democratic Republic of Congo (Kinshasa) ('DRC')

Presidential Decree

In March, the Company announced that its Production Sharing Contract ('PSC') over the Nganzi Block, onshore the DRC, 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. 

Additional Licence

In March, SOCO E&P-DRC 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.

CORPORATE

On 22 April, SOCO announced that it had completed the disposal of its wholly owned subsidiary SOCO Yemen Pty Limited, the entity that held the Company's indirect 16.785% interest in the East Shabwa Development Area in Yemen, to a subsidiary of Sinochem Petroleum Limited for a cash consideration of approximately US$465 million.  

The disposal of the Company's Yemen interest has strengthened its balance sheet significantly and the resulting gain will dominate SOCO's income statement during this reporting period. As a result, the Company has cancelled its unsecured revolving term loan facility of US$50 million with BNP Paribas.   

The majority of the Yemen disposal proceeds will be used to fund the Company's exploration and development programmes. In particular, capital will be deployed in order to further develop SOCO's assets in Vietnam. The remaining proceeds will provide the financial flexibility necessary to participate in future opportunities as and when they arise.

The Company's Annual General Meeting will be held on 24 June 2008 at 10.00am at the offices of Ashurst LLP, Broadwalk House, 5 Appold Street, London EC2A 2HA.

SOCO's interim results for the six months to 30 June 2008 will be published in August 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.

 

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