Soco Logs Pay with KHA-402 in Yemen

Kharir Field, Yemen
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Soco International's subsidiary, Comeco Petroleum, Inc. through which Soco holds a 16.785% interest in the East Shabwa Development Area in Yemen ('ESDA'), announces an update of the three well appraisal and development program planned for 2004 targeting the Basement in the Kharir Field. After installing the completion package in preparation for testing the KHA-402, the second well in the program, the drilling rig has moved to spud the third location.

The KHA-402 well spudded on October 17, 2004 and reached a total depth of 3,441 meters. The well was drilled to test the potential of the far eastern end of the Kharir field and to evaluate the prospectivity along the flanks of the crestal area. The main objective of the KHA 402 well is to test potentially productive fractures identified on seismic, targeting prominent fault zones due south of the KHA-210 discovery well.

Oil and gas shows were encountered throughout the Basement in this first deviated appraisal well (37 degrees). The KHA-402 was suspended prior to the installation and hook up of the surface production equipment. Oil production testing is expected to begin in mid-December. A further update will be issued when testing results are available.

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