SOCO Says TGC-1X Results Not Encouraging

SOCO Vietnam says that the Te Giac Cam (TGC-1X) well, the first well on Prospect 'S' in Block 16-1, will be plugged and abandoned after reaching a total depth of 4,196 meters. While the reservoir in the primary target, the Lower Bach Ho 5.2 interval, was not developed, the well did encounter oil shows in the Oligocene and the well was deepened to further evaluate this section.

While drilling in the Oligocene, the well encountered unexpected high pressure, with associated oil and gas shows, and had to be cased using a 7 inch liner prior to drilling to total depth. Examination of the well and logging data indicated that, despite the hydrocarbon influx, it was not sufficiently encouraging for the well to be tested. However, overpressure in the Oligocene could be a positive indication for the Oligocene/Basement target on Prospect 'E' approximately 17 kilometers to the southeast.

This rig will be released; however, a new rig, the GSF Adriatic XI, is expected to arrive in June to continue exploration drilling on Block 16-1.

The PV Drilling-1 rig spudded the Te Giac Den (TGD-1X) well on Prospect 'E' in Block 16-1 on April 5, 2007. This is the first well for the new rig retained primarily to drill development wells on the Ca Ngu Vang field on Block 9-2. The rig is currently drilling ahead at approximately 1,800 meters preparing to set 13 3/8' casing. The well is expected to take approximately 60 days to drill. A test, if required, would add approximately 30 days to the schedule.

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