SOCO Increase Stake in Block 16-1 Offshore Vietnam
SOCO has purchased an additional 2% interest in Block 16-1 in the Cuu Long Basin, offshore in the Socialist Republic of Vietnam, taking its total interest in the Block to 30.5%. Exploration drilling on this Block to date has identified an 80 kilometer long play fairway with prospects and leads mapped at multiple horizons, and the Company expects to declare commerciality on the Te Giac Trang prospect in the near future.
The purchase of the additional interest in Block 16-1 was carried out by SOCO's wholly owned subsidiary SOCO International (Cayman) Limited, which acquired the entire share capital of Opeco, Inc. from its shareholders on June 16, 2006. Opeco, Inc. holds the entirety of the shareholding of Opeco Vietnam Ltd., which holds a direct 2% interest in Block 16-1 in the Cuu Long Basin, offshore in the Socialist Republic of Vietnam. The consideration paid for the acquisition was US $22,000,000 in cash.
Ed Story, President and Chief Executive of SOCO, commented:
"We think this is an extraordinary opportunity to further consolidate our interest in the oil rich Block 16-1. We believe that there is no greater potential reward for every exploration dollar spent than in the Cuu Long Basin in Vietnam."
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