SOCO Makes Discovery Offshore Vietnam
SOCO and its partners in Vietnam have made a second discovery in Vietnam and the first discovery on Block 9-2. The Ca Ngu Vang-1X vertical exploration well, the first well on Block 9-2, has tested at a stabilized combined rate of approximately 3,600 barrels of crude oil equivalent per day comprised of approximately 2,500 barrels of crude per day and approximately 6.6 million cubic feet of gas per day.
The un-stimulated open hole test was conducted over a 24 hour period from a Basement interval of 850 meters. The well was drilled to a total depth of 4,567 meters, entering Basement at 3,717 meters. Although originally designed as a pure Basement exploration well, well log analysis and oil shows during drilling also indicate oil potential in an upper Miocene interval of approximately 15 meters which will be tested later.
The rig will be moved immediately after the conclusion of testing and plugging and abandoning this expendable well to drill the "A" prospect on Block 16-1, the second well on the Block and the third well in the drilling program. The "C" prospect, the largest prospect on Block 9-2, will be drilled as the fourth well in the four well drilling program.
SOCO Vietnam currently holds a 25% working interest in Block 9-2 and has recently announced an increase in its interest in Block 16-1 from 15% to 28.5% subject to Vietnam governmental approval. SOCO Vietnam’s interest in Block 9-2 and its initial interest in Block 16-1 is carried up to a maximum amount of US$50 million through the initial exploration program under the terms of a farm-out agreement announced earlier this year. Both Blocks are contiguous to the Bach Ho (approximately 250,000 BOPD and 150 million cubic feet of gas per day) and the Rang Dong (approximately 55,000 BOPD) producing fields.
Ed Story, President and Chief Executive of SOCO, commented: "When SOCO listed in London in May of 1997, the project in Vietnam was merely a concept although the effort to secure some assets there had been underway for three years prior to that time. The concept has become a reality with this significant discovery. Moreover, greater potential remains with even larger prospects yet to be drilled. Vietnam has clearly become a core area for SOCO, which we believe will join the ranks of significant producers in Vietnam."