Sale of Mongolian Assets

Soco International PLC
01 April 2005

SOCO International plc

('SOCO' or 'the Company')


Sale of Mongolian Assets

SOCO is an international oil and gas exploration and production company,
headquartered in London. The Company has continuing interests in Vietnam, Yemen,
Libya and Thailand with ongoing production operations in Yemen.

SOCO announces that it has entered into a Sale and Purchase Agreement (the 
'Agreement') for the sale of its Mongolian interests to Daqing Oilfield Limited
Company ('Daqing'), a subsidiary of PetroChina, a publicly listed company that
holds interests in China and worldwide.


Key highlights:

  • Disposal of SOCO's Mongolian Assets to Daqing for total consideration of
    approximately US$93 million

  • The total consideration comprises:
    - a cash consideration of US$30 million payable on Completion
    - US$10 million payable in cash 18 months later (in escrow from Completion) 
    - a cash payment of approximately US$53 million based on production above 
      27.8 million barrels from 1 January 2005

  • The Agreement is consistent with SOCO' strategy of rationalising its
    portfolio by monetising non-core assets, with proceeds further strengthening
    SOCO's ability to participate in further opportunities

  • The disposal is subject to certain conditions, including approval of
    SOCO shareholders


Ed Story, President and CEO of SOCO, said, 'This transaction with Daqing is
particularly beneficial as it provides SOCO with additional capital to deploy
toward projects that can further enhance our core portfolio and is seen as the
first step in greater co-operation with a Chinese industry participant who could
have further interests in expanding its international role.'



                                                                    1 April 2005


ENQUIRIES:
SOCO International plc                                       Tel:  [phone]
Roger Cagle
Deputy Chief Executive and Chief Financial Officer


College Hill                                                 Tel:  [phone]
Ben Brewerton

Nick Elwes




Details of the Agreement

The Agreement with Daqing comprises SOCO's entire shareholding in the wholly
owned subsidiaries, SOCO Mongolia Ltd ('SOCO Mongolia') and  SOCO Tamtsag
Mongolia LLC ('SOTAMO').  These subsidiaries  hold interests in three Production
Sharing Contracts ('PSCs') over Contract Areas XIX, XXI and XXII in the Tamtsag
Basin of Mongolia (the 'Contract Areas').    Completion is expected to take
place following satisfaction of certain conditions contained in the Agreement,
including the approval of the disposal by SOCO's shareholders in an
extraordinary general meeting.

Pursuant to the Agreement, Daqing will acquire the whole of SOCO's Mongolian
interests from SOCO International Operations LLC ('SIOPS') and SOCO
International Cayman Ltd ('SOCO Cayman') (the 'Sellers') for a consideration of
up to approximately US$93 million comprising a cash consideration of US$40
million (£21.3 million at an exchange rate of US$1/£0.532), plus a subsequent
cash payment amount based on total crude oil produced from the PSCs subsequent
to 1 January 2005 in excess of 27.8 million barrels.  The cash consideration is
payable in two tranches. The first tranche of US$30 million is payable, subject
to certain working capital adjustments, in cash on completion. The second
tranche of US$10 million will be paid into an escrow account on completion to be
released to the Sellers 18 months following completion, assuming satisfaction of
the condition that no material undisclosed additional liabilities are discovered
in the interim from the date of completion.

The subsequent payment amount is in respect of all production of crude oil
produced from the three Contract Areas in aggregate subsequent to 1 January 2005
in excess of 27.8 million barrels.  This subsequent payment amount is
equivalent to an amount which the Petroleum Authority of Mongolia approves as
recoverable costs and expenses incurred in respect of the Contract Areas in the
period to 31 December 2004. The directors currently estimate that this amount
will be US$53 million.  Once the 27.8 million barrels threshold is exceeded, the
buyer is obliged to pay to the Sellers a monthly payment equal to the total
aggregate production for that month multiplied by the average monthly posted
marker price for Daqing crude oil multiplied by 20%.  Based upon the directors'
estimates of proven and probable reserves from the Mongolian interests and the
development scenarios as discussed with the buyer, the directors believe that
the full subsequent payment amount estimated to be US$53 million will be payable
to the Sellers.  The timescale for the production of crude oil in excess of 27.8
million barrels and the price of Daqing marker crude oil are factors that cannot
be accurately predicted. The transaction is subject to normal interim period
adjustments from 1 January 2005.

Working interest production to the Company from its Mongolian interests averaged
354 barrels of oil per day during the first half of 2004.  SOCO's Mongolian
proved and probable reserves on an entitlement basis totaled 42 million barrels
at the end of 2003. Crude oil sales from the pilot production programme in
Mongolia are recorded to reflect nil gross margin.  For the year ended 31
December 2003, turnover of £1.7 million was attributable to these sales.  As at
31 December 2003, the net intangible asset value of the Group's Mongolian
interests was £40.4 million.

The disposal is consistent with the Company's stated strategy of rationalising
its portfolio by monetising non-core assets.  The proceeds from this transaction
will further strengthen the Company's debt free balance sheet, providing
additional leverage to allow it to participate in further opportunities that may
arise.







Notes to Editors

The Group's Mongolian interests are held directly by SOCO Tamtsag Mongolia (XIX)
Ltd ('SOCO XIX'), SOCO Tamtsag Mongolia (XXI) Ltd ('SOCO XXI'), SOCO Tamtsag
Mongolia (XXII) Ltd ('SOCO XXII') and SOCO Mongolia .  The share capital of SOCO
XIX, SOCO XXI and SOCO XXII is 100% owned by SOTAMO, which is in turn wholly
owned by SIOPS.  The share capital of SOCO Mongolia is 100% owned by SOCO
Cayman.


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