Option to sell majority interest in SOCO Cabinda
SOCO International plc, an international oil and gas exploration and production company, today announces that it has entered into a conditional agreement (the "Disposal") with Quill Trading Corporation ("Quill") wherein SOCO will sell its 80% majority interest in SOCO Cabinda Limited ("SOCO Cabinda") to Quill, which holds the remaining 20% interest. SOCO Cabinda has a 17% participating interest in the Cabinda North Block, onshore the Angolan enclave of Cabinda.
Under the terms of the Disposal, Quill has paid a non-refundable deposit to the Company for the option to acquire, within 120 days, SOCO's entire shareholding in SOCO Cabinda. SOCO Cabinda had gross assets of US$32.5 million as at 30 June 2012. The Group has no reserves attributable to its interests in SOCO Cabinda.
The Directors believe that the Disposal is in the best interests of the Company's shareholders as the Group continues to re-focus the portfolio on higher impact projects in which it holds larger participating interests.
Ed Story, President and CEO of SOCO, said:"This proposed Disposal is consistent with our strategy of re-focusing the asset portfolio on projects where SOCO has larger equity interests and adding new ventures, which can potentially create more value for shareholders.
SOCO International plc
Deputy Chief Executive and Chief Financial Officer
+44 20 7747 2000
Pelham Bell Pottinger
+44 20 7861 3232
NOTES TO EDITORS:
SOCO is an international oil and gas exploration and production company, headquartered in London, traded on the London Stock Exchange and a constituent of the FTSE 250 Index. The Company has interests in Vietnam, the Republic of Congo (Brazzaville), the Democratic Republic of Congo (Kinshasa) and Angola, with production operations in Vietnam.
SOCO holds its interests in Vietnam, all in the Cuu Long Basin offshore, through its wholly owned subsidiaries SOCO Vietnam Limited and OPECO Vietnam Limited. SOCO Vietnam Limited holds a 25 per cent. working interest in Block 9-2, which is operated by the Hoan Vu Joint Operating Company and holds a 28.5 per cent. working interest in Block 16-1, which is operated by the Hoang Long Joint Operating Company. OPECO Vietnam Limited holds a 2 per cent. interest in Block 16-1.
SOCO holds its interests in the Republic of Congo (Brazzaville), all offshore in the shallow water Lower Congo Basin, through its 85 per cent. owned subsidiary, SOCO Exploration and Production Congo SA ("SOCO EPC"). SOCO EPC holds a 40.39 per cent. participating interest in the Marine XI Block and a 29.4 per cent. participating interest in the Marine XIV Block and is designated operator of the two Blocks.
SOCO holds its interests in the Democratic Republic of Congo (Kinshasa) though its 85 per cent. owned subsidiary, SOCO Exploration and Production DRC Sprl ("SOCO E&P DRC"). SOCO E&P DRC holds a 65 per cent. participating interest in the Nganzi Block, situated in the North Congo Basin onshore western DRC, and a 85 per cent. participating interest in Block V, in the southern Albertine Graben onshore eastern DRC. SOCO E&P DRC is designated operator of both Blocks.