SOCO Completes Testing of Ca Ngu Vang-1X Well
SOCO Vietnam has concluded the testing of the Ca Ngu Vang-1X vertical exploration well, the first well on Block 9-2. The final Basement flow test, impeded by a collapsed section at the top of the Basement interval, yielded a maximum combined rate of approximately 4,500 barrels of crude oil equivalent per day comprised of approximately 3,100 barrels of crude per day and approximately 7.9 million cubic feet of gas per day.
Although the well was designed as a pure Basement exploration test, a minimal test without stimulation was conducted to test an oil bearing section in the lower Miocene after plugging back from the Basement interval. The test recovered a calculated rate of approximately 125 barrels of oil per day.
After release from the 9-2 prospect, the rig spudded the "A" prospect on Block 16-1, the second well on the Block and the third well in the drilling program, on October 12th. The "C" prospect, the largest prospect on Block 9-2, will be drilled as the fourth well in the four well drilling program.
SOCO Vietnam currently holds a 25% working interest in Block 9-2 and has recently announced an increase in its interest in Block 16-1 from 15% to 28.5% subject to Vietnam governmental approval. SOCO Vietnam's interest in Block 9-2 and its initial interest in Block 16-1 is carried up to a maximum amount of US$50 million through the initial exploration drilling program under the terms of a farm-out agreement announced earlier this year. Both Blocks are contiguous to the Bach Ho (approximately 250,000 BOPD and 150 million cubic feet of gas per day) and the Rang Dong (approximately 55,000 BOPD) producing fields.
Ed Story, President and Chief Executive of SOCO, commented: "We are extremely pleased with the results in the Vietnam drilling program to date and excited about the potential of the remaining prospects. With reserve expectations of circa 250 million barrels from the first prospect drilled on Block 9-2, the Company’s unqualified success in establishing Vietnam as a core area is assured."