SOCO Makes Third Vietnam Discovery
SOCO Vietnam and its partners have made a discovery on the 16-1-Voi Trang-1X vertical exploration well, the second exploration test well drilled on Block 16-1 by the Hoang Long Joint Operating Company. The well tested a maximum sustained rate of approximately 3,500 barrels of crude oil per day from a section that included both Oligocene and Basement intervals. The high quality 42 degrees API crude was recovered from a bottomhole test conducted on an interval from 2,086 meters to 2,490 meters. From information gathered from a production logging tool, the oil appears to be sourced primarily from the Oligocene section.
The rig is scheduled to be moved off this well later this week en route to spud the second well on Block 9-2 and the first well on the "C" prospect. The "C" prospect, the largest prospect on Block 9-2, will be the final well in the planned four well exploration drilling program.
With this well, SOCO Vietnam has its third consecutive discovery and second consecutive significant test flow rate. The first exploration well on Block 9-2, drilled just prior to this well, tested at a maximum sustained daily rate of approximately 4,625 barrels of crude oil equivalent from two intervals as was announced in October. As was announced in July, the first exploration discovery well in the Vietnam drilling program was drilled on Block 16-1 and tested approximately 250 BOPD from a Basement interval.
SOCO Vietnam has previously announced an increase in its interest in Block 16-1 from 15% to 28.5% subject to Vietnam governmental approval. It also holds a 25% working interest in Block 9-2. 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 field, which is producing approximately 250,000 BOPD and 150 million cubic feet of gas per day, and the Rang Dong field, where it was recently announced that production had increased to approximately 65,000 BOPD.
Ed Story, President and Chief Executive of SOCO, commented: "We are very excited about this discovery on Block 16-1. With the discovery on Block 9-2 already establishing the Cuu Long Basin as a core commercial area for the Company, this well gives a new dimension to the play types, which further solidifies Vietnam as a premier cornerstone of SOCO's portfolio."