Soco Says TGT-4X Well Results Disappointing
Soco International says the third appraisal well on the Te Giac Trang ("TGT") structure, drilled on a separate fault block between the initial discovery well, TGT-1X, that flowed at 9,340 barrels of oil equivalent per day ("BOEPD") and the TGT-3X that flowed at 9,908 BOEPD, has been plugged and abandoned. TGT-4X was drilled to aid the determination of the best location for the initial development and to assess the extent of the TGT Field. The well results mean that the initial development will now take place in the northern fault block tested by the 1X and 2X wells. The Reserve Assessment Report for the TGT field, which is the first step leading to Declaration of Commerciality, is well underway.
The well intersected the hydrocarbon bearing Lower Miocene reservoir interval as predicted. However, the trap had been breached and only residual oil was encountered. The well also encountered hydrocarbons in the Oligocene "D" interval, a new reservoir on the Block, and flowed at a rate slightly over 600 barrels of oil per day on a short test.
Detailed review of the seismic has identified that the breaching of the Lower Miocene trap is due to late movement on a fault located south of the TGT-4X well. This appears to be the only such fault on the TGT field and the effect is considered to be local to this well. While this will continue to be one of the general risks to some of the exploration prospects on Block 16-1, this has no impact on our view of TGT reserves.
Weather permitting, the rig will immediately move to the "K" prospect on Block 16-1 to spud the initial exploration well.
The Ca Ngu Vang sidetrack, "CNV-4X ST", on Block 9-2 is currently testing. Results should be available early next week.
Ed Story, President and Chief Executive of SOCO, commented:
"Even with three of the four wells drilled on TGT testing between 9,340 BOPD and 17,500 BOPD, we do not expect every well drilled on this exciting clastics fairway on Block 16-1 to be an unqualified success. We continue to refine our play model as we gather information from the drilling program and will incorporate the results of TGT-4X into the evaluation of the remaining prospects. The declaration of commerciality and early development is proceeding as planned.
The exploration drilling program carries on with essentially a well result every 30 days on Block 16-1. Thus we will continue to have a regular news flow from Block 16-1. Moreover, the new discovery in the Oligocene "D" interval merits further evaluation and illustrates the attractiveness of the overall clastics exploration play with multiple targets."
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