SOCO International Farms-out Stakes in Marine XI Block


SOCO says that its subsidiary, SOCO Exploration and Production Congo ("SOCO EPC"), has entered into a farm-out agreement wherein it has agreed to farm-out 18.75% of its interest in the Marine XI block, offshore the Republic of Congo (Brazzaville), to each of a subsidiary of Lundin Petroleum AB and Raffia Oil SARL. SOCO EPC will remain as the operator with a 37.5% working interest in the block. The exploration and production branch of SNPC (15%) and Africa Oil & Gas Corporation (10%) hold the remaining interests.

The block, located in the Lower Congo Basin, is in shallow water adjacent to the coast with water depths ranging up to 110 meters and covers approximately 1,400 square kilometers. There has been previous exploration activity on the block resulting in four small oil discoveries, the largest of which has initial recoverable reserves estimated to be in the 30 to 60 million barrel range. A contract has been awarded to PGS Overseas AS for the acquisition of a 1,200 square kilometer 3D seismic program. The Ramform Explorer is expected to begin acquisition in early October.

The assignment of interests in the Agreement is subject to approval of the appropriate regulatory authorities of the Government of the Republic of Congo (Brazzaville).