New Vietnam Discovery

The initial wildcat exploration well on the Te Giac Trang ("TGT") structure on the previously un-drilled "H" prospect on Block 16-1 offshore Vietnam, the TGT-1X, has tested water-free at a combined maximum rate of 9,432 barrels of oil equivalent per day ("BOEPD") comprised of 8,566 barrels per day (“BOPD”) of 37 degree API gravity crude and approximately 4.86 million cubic feet of gas per day through a 80/64 inch choke size.

The drill stem test was conducted from the Lower Bach Ho formation in the Miocene interval between 2701 metres and 2760 metres. The calculated net pay was approximately 31 metres (102 feet) over the test interval. An additional 33 metres (111 feet) of net pay interval were not perforated due to the limited equipment and materials available within the applicable time constraints. Based on the data from the well test, oil samples from wireline formation tests, and well logs, the untested interval is considered oil bearing and productive.

A brief test was also conducted over a deeper Oligocene interval that also contained significant oil shows, but the formation was determined to be tight and thus unable to flow commercial quantities of hydrocarbons.

Evaluation of the well results has commenced in order to determine an appraisal strategy for the TGT structure.

Success at the TGT-1X well confirms the presence of a highly prospective section in the sedimentary clastic reservoirs of the eastern portion of Block 16-1. Data from this well provide a firm foundation for continued exploration drilling on other nearby prospects.

Following completion of testing operations, the rig will be moved immediately to drill a follow-up appraisal well to the 13,040 BOEPD CNV-3X well drilled earlier this year on the Ca Nu Vang structure on Block 9-2. It will be the third well in the multi-well drilling programme which began this year in Vietnam.

Ed Story, President and Chief Executive of SOCO, commented:

"The results of the vertically drilled TGT-1X well are excellent. Confirming the additional prospectivity of the Miocene play on Block 16-1 to the demonstrated potential of the Basement on Block 9-2 reinforces the company’s strategy of value creation through the drill bit."