SOCO International Offers Hopeful Vietnam Operations Update

Block 16-1


Drilling on the Te Giac Den 1X side track well on Prospect "E" has ceased after reaching 5,096 meters measured depth (MD). Primarily due to concerns over the integrity of the well bore, but also factoring in the difficulty and anticipated time and expense of deepening the hole, the decision was made to not drill an extended Basement section.

The well has been plugged back to 4,820 meters MD prior to conducting two drill stem tests (DSTs) in the high pressure/high temperature Oligocene interval. The first DST will be over an approximate gross interval of 210 meters in the higher pressured zone below the volcanics layer, which separates the two over-pressured sections. The second DST will be in the upper Oligocene interval above the volcanics layer over an approximate gross interval of 120 meters.

Testing is expected to be completed toward the end of June 2008.


The Te Giac Trang 6X appraisal well, drilled on the H4 fault block as a down dip test to the TGT-3X exploration well, reached 3,437 meters MD, as planned. Two DSTs were planned, the first of which tested an interval between 3,064 meters and 3,094 meters in the Miocene Intra Lower Bach Ho 5.2 (ILBH) "lower" interval and flowed approximately 6,650 barrels of oil per day through an 80/64 inch choke size.

A second DST will commence shortly over an approximate gross interval of 64 meters in the ILBH 5.2 "upper" interval. Testing is expected to be completed by the middle of June 2008.

Block 9-2

A high sea state has intermittently shut down operations of the pipe lay barge thus causing some delay on the installation of the production and water pipelines between the unmanned CNV well head platform and the Bach Ho central processing platform over which CNV production will be processed. Despite this unanticipated delay, oil production remains on target to begin by the end of July 2008.


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