SOCO International plc (‘SOCO’ or ‘the Company’)
The Company’s majority owned subsidiary, SOCO Vietnam Ltd., announces that the Te Giac Trang appraisal well, the TGT-7X on Block 16-1 in the Cuu Long Basin offshore Vietnam, flowed at a combined maximum rate of approximately 8,100 barrels of oil per day (‘BOPD’) from two drill stem tests (‘DSTs’). The TGT-7X well was drilled to test a separate, previously untested fault block, designated H3N, within the TGT Field and was drilled to improve knowledge of the reservoir distribution.
The first of the two DSTs tested the lower section of the Lower Miocene ILBH5.2 in a net interval of 36.5 metres between 2,922.5 metres and 3,002.5 metres measured depth (‘MD’). The test flowed at rates in excess of 7,100 BOPD and 5.9 million standard cubic feet per day of gas (‘MMSCFD’) with no water. The second test, in a net interval of 13 metres between 2,754.0 metres and 2,773.0 metres MD of the upper section of the Lower Miocene ILBH5.2, tested a tighter previously untested part of the reservoir and produced at approximately 1,000 BOPD and 0.5 MMSCFPD. Following this well, the Adriatic XI rig will have reached the end of its contract and on release will leave Vietnamese waters. Activities are ongoing to evaluate options for the TGT-8X appraisal well.
To date, seven exploration/appraisal wells have been drilled in the TGT Field, with an average oil and gas flow of approximately 11,300 barrels of oil equivalent per day from each well.
The TGT Field reserve assessment report received approval from the Vietnam Government in April 2008 and the field was subsequently confirmed as a Commercial Discovery under the Petroleum Contract. An outline plan for the development of the field has been submitted to PetroVietnam and the Vietnam Government. Approval for the TGT Field Development Plan is anticipated in late 2008.
Ed Story, President and Chief Executive of SOCO, commented: “The TGT-7X well continues the enormous success we have enjoyed in both the TGT field, and across our Vietnam portfolio overall. As well as proving the high productivity of the Miocene reservoir sands it has also added additional reserves to the field and again reinforces our confidence in the reserve potential of the TGT field as we drive forward the development of the field and seek to add to our existing production from the CNV field.”