SOCO, an international oil and gas exploration and production company, today announces its Interim Management Statement relating to the period from 1 July 2012 to 31 October 2012.
- Production for the three quarters ended 30 September 2012 was approximately 400% higher than the same period in 2011 and averaged 13,755 barrels of oil equivalent per day ("BOEPD") net to the Company's working interest (18,824 BOEPD week ended 26 October). Entitlements production was approximately 1,000 BOEPD higher than the working interest.
- Net cash as at 31 October 2012 was approximately $170 million (30 June 2012: $178.0 million and 31 December 2011: $113.5 million).
- The Te Giac Trang ("TGT") H4 Wellhead Platform ("H4-WHP") commenced production a month ahead of schedule in July 2012, increasing total field production to average above 50,000 barrels of oil per day ("BOPD") since start up; peak production reached over 60,500 BOPD; production for the last 24 hour period reported (30 October) was 58,867 BOPD.
- In July 2012, the Company announced and completed the acquisition of the outstanding 20% non-controlling interest in SOCO Vietnam Ltd for cash consideration of $95 million.
- Lideka Marine East Well 1 is expected to spud offshore the Republic of Congo before the end of 2012.
Te Giac Trang ("TGT")
Production from TGT's southern platform, the H4-WHP, commenced on 6 July 2012, over one month earlier than scheduled and nearly a year ahead of the original approved development plan. Production from TGT has averaged 11,556 BOPD net to the Group's working interest during the first three quarters of 2012 (16,317 BOPD for the week ending 26 October 2012) with net entitlement production averaging 12,543 BOPD, including recovery of costs carried on behalf of PetroVietnam.
With the introduction of production from the five wells at the H4-WHP, production from TGT has achieved stable flow rates ranging from 50-56,000 BOPD, with daily rate fluctuations reflecting well intervention activities. A one-day "high rate" flow test of the floating, production, storage and offloading vessel ("FPSO") was carried out at 60,789 BOPD with no issues seen in either the reservoir performance or the FPSO operability. The data gathered during this performance test is being analysed to enable us to identify and alleviate bottlenecks in the systems to assess the FPSO oil production handling potential.
At the northern platform, the H1-WHP, the PetroVietnam Drilling Rig, PVD-II, has been on location to complete the four-well, infield development drilling programme which included two infill wells, an appraisal well and one development well. The TGT-15P and TGT-16P infill wells on the H1.1 fault block and the TGT-8X appraisal well on the H2N fault block were batch drilled into the reservoir section. These wells are now producing. The TGT-17P development well was suspended following a "twist-off" in the bottom-hole assembly above the reservoir section. The rig has been released ahead of the monsoon season and will return to the TGT field in the second quarter of 2013 for the 2013 drilling programme, which will include completing the TGT-17P well.
Ca Ngu Vang ("CNV")
Production on Block 9-2 from the CNV field has been steady during the year with production net to the Company's working interest averaging 2,199 BOEPD during the first three quarters of 2012 (2,507 BOEPD for the week ending 26 October 2012).
Dedicated test separation and metering facilities have been installed on the Bach Ho central processing platform complex and commissioning is near completion. Once in service, the new facilities will allow the operator, the Hoan Vu Joint Operating Company, to more accurately measure liquid and gas production from the CNV production stream entering the Bach Ho central processing platform complex. A long term production test to validate the newly installed system is underway.
REPUBLIC OF CONGO (BRAZZAVILLE)
From an analysis of the results of previously acquired data on the Block, incorporating the results of the Lideka Marine 1 well drilled by the previous Block concession holder, the Marine XI partners have agreed to drill the Lideka Marine East 1 well. It is expected to spud before the end of 2012. This well is a test of stacked plays and will test both the structural closure updip from an oil leg encountered in the Sendji Formation in the Lideka Marine 1 well that was drilled two kilometres to the west and also the large untested structural closure in the overlying Tchala Formation.
The Marine XIV partners have determined that they will not enter into a second exploration phase on Marine XIV and accordingly have relinquished the Block back to the Government of the Republic of Congo.
Nanga II A
The Group has been awarded a sole one-year exploration licence over the Nanga II A Block. The Block covers 687 square kilometres and is located adjacent to the coast, onshore the Republic of Congo, near the M'Boundi producing field. The plan is to conduct an aeromagnetic survey followed by a 3D seismic survey on the area within the year. The Group will determine whether to enter into a Production Sharing Contract following an evaluation of the data.
DEMOCRATIC REPUBLIC OF CONGO (KINSHASA)
The Government of the Democratic Republic of Congo ("DRC") commissioned an aerial survey and baseline studies over Block V in September 2011 as part of its wider objective of performing a strategic environmental evaluation. Accordingly, SOCO's work programme has been agreed in close collaboration with the Congo Environmental Studies Group ("GEEC") and the Congolese Wildlife Authority ("Institut Congolais pour la Conservation de la Nature" or "ICCN").
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