Soco doubles estimate of Vietnam well to 200 MMbbl

10/2/2013

Soco doubles estimate of Vietnam well to 200 MMbbl

BY EDUARD GISMATULLIN

LONDON (Bloomberg) -- Soco International, said a well off Vietnam holds as much as 200 MMbbl of oil and gas, double its best previous estimate.

The TGT-10XST1 well on the H5 block of the Te Giac Trang, or TGT, field produced more than 27,600 boed, the company said in a statement.

Soco completed tests at three zones in the well. The test increased the well resource estimate to 150 to 200 MMbbl, up from the previous guidance of 50 to 100 MMbbl. “It’s the biggest well I’ve ever been associated with in 37 years or so,” CFO Roger Cagle said in phone interview.

The company, plans to conduct tests at its TGT floating production, storage and offloading vessel for higher capacity to accommodate increased output from the field and volumes from Talisman Energy’s nearby deposit. The latest well and the “imminent gas sale” contract will boost the total TGT field resource estimate to more than 1.3 Bboe, Cagle said.

“This is another excellent result at the TGT field and confirms its status as a world-class asset,” VSA Capital Ltd. analysts led by Dougie Youngson wrote in a report. Soco has “potential as a takeover target.” Cagle declined to comment on any possible bids.

“You’d think that people who are interested in production assets would be more interested now than they have been before,” he said. “There has been plenty of interest.”

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