SOCO announces that its subsidiary, SOCO Vietnam Ltd., has executed a Farm-out Agreement with PTT Exploration and Production Company Limited of Thailand, subject to approval of the Government of Vietnam. Per the Agreement, PTTEP will fund SOCO's and PTTEP's share of drilling four wells scheduled this year on Blocks 9-2 and 16-1 in the Cuu Long Basin offshore Vietnam to a maximum of US$50,000,000, whichever is less. Post farm-out SOCO Vietnam, in which SOCO holds an 80% interest, retains a 25% interest in Block 9-2 and a 15% interest in Block 16-1.
Ed Story, chief executive of SOCO, commented, "We are delighted to have a company with PTTEP's experience, expertise and operating capabilities in southeast Asia join in our exploration program in Vietnam. We are very optimistic about the potential of these prospects and continue to have significant exposure to the upside whilst having limited our potential downside."