RNS Number : 4377O
07 November 2016
SOCO International plc ('SOCO' or the 'Company')
SOCO announces that the 2016 development drilling programme has commenced on the Te Giac Trang ('TGT') Field of Block 16-1, offshore southern Vietnam. The infill wells, the TGT-27P and TGT-28P, will be 'batch drilled' with the first well spudded on 6 November 2016 by the PetroVietnam Drilling PVD-6 jack-up rig on the H4- Well Head Platform ('WHP') in the central area of the TGT Field. The TGT partners are reviewing adding a further two infill wells on the southern H5-WHP following the completion of these wells.
SOCO's production guidance range for 2016 has been 10-11,500 BOEPD. Due to the lack of drilling during the year, additional downtime associated with pressure-testing on the Ca Ngu Vang Field, along with the recent stoppage for rig positioning and well intervention work beyond that originally planned, production rates for the full year are expected to be at the lower end of this guidance.
The TGT Full Field Development Plan ('FFDP') partner discussions are in the final stages ahead of formal submission to the relevant authorities. The FFDP includes additional wells and facilities options to increase total fluid-handling capacity. Final submission to the Vietnamese Government is expected after the upcoming Management Committee meetings next week.
Ed Story, President and Chief Executive Officer, commented:
'We are delighted to commence the first development drilling programme on TGT since early 2015. As indicated in our Interim Results, SOCO has the balance sheet strength to fully fund this programme from existing cash resources whilst taking advantage of the low drilling cost environment. Meanwhile, we continue to focus on enhancing the field water-handling capacity and arresting the field decline.'
ENQUIRIES:
SOCO International plc
Roger Cagle, Deputy Chief Executive and Chief Financial Officer
Antony Maris, Chief Operating Officer
Tel: 020 7747 2000
Bell Pottinger
Nick Lambert
Elizabeth Snow
Tel: 020 3772 2500
NOTES TO EDITORS
SOCO is an international oil and gas exploration and production company, headquartered in London and traded on the London Stock Exchange. The Company has field development and production interests in Vietnam and exploration and appraisal interests in the Republic of Congo (Brazzaville) and Angola.
Te Giac Trang ('The White Rhino')
The Te Giac Trang ('TGT') field is situated in Block 16-1, offshore Vietnam and approximately 80 kilometres from Vung Tau. Block 16-1 is operated by the Hoang Long Joint Operating Company. SOCO holds a 30.5% interest.
The TGT field was first discovered in 2005 and was the first commercial discovery on Block 16-1. Production began in 2011. More than 30 wells have been drilled and the field is currently producing from three platforms, which have a total of 26 producing wells and one injector well, and is located in the north eastern part of Block 16-1 offshore Vietnam.
Oil from TGT is transported by a subsea pipeline to a nearby FPSO vessel where it is processed and then exported by tanker to regional oil refineries. Gas from TGT is processed at nearby facilities and transported by pipeline to shore to supply the Vietnamese domestic market.