SOCO announces Operatorship and farm-in to Mer Profond Sud in Congo (Brazzaville)
SOCO announces that it has entered an agreement with PA Resources Congo SA, a wholly owned subsidiary of PA Resources AB, to farm-in to a 60% working interest in the Mer Profonde Sud permit, offshore the Republic of Congo (Brazzaville). The Mer Profond Sud permit comprises the exploration area of the licence but excludes the Azurite Field.
In return for carrying certain of PA Resources Congo SA's costs, SOCO will assume a 60% working interest in the Mer Profonde Sud exploration area as operator and will drill an exploration well in the remaining licence period. The well will test a different structural setting and play, identified from recent seismic reprocessing and subsurface re-evaluation, from the other wells already drilled on the Block and targeting similar reservoirs that produce from offsetting fields in the Congo and in Angola/Cabinda.
The transaction is subject to the necessary partner and regulatory approvals including both the assignment of the interest to SOCO and renewal into the third and final period of the licence. Following approval, the partners would look to drill the well in 2014-2015.
Following completion of the transaction, PA Resources Congo SA will retain a 25% working interest in the licence, whilst the Congolese state oil company, SNPC, will retain its current 15% interest.
Ed Story, President and Chief Executive of SOCO, commented:
"As an established Operator in Congo (Brazzaville), this is a natural step for us. Using our knowledge of the basin, and the additional work from PA Resources, we were able to recognise an untested prospect in a different structural setting from that already tested. The adjacent production from the same reservoirs as we are targeting adds to our optimism about the potential of this licence."
SOCO International plc
Antony Maris, Chief Operating Officer
Tel: 020 7747 2000
Tel: 020 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 Ltd and OPECO Vietnam Limited. SOCO Vietnam Ltd holds a 25% working interest in Block 9-2, which is operated by the Hoan Vu Joint Operating Company and holds a 28.5% working interest in Block 16-1, which is operated by the Hoang Long Joint Operating Company. OPECO Vietnam Limited holds a 2% interest in Block 16-1.
SOCO holds its interests in the Republic of Congo (Brazzaville) through its 85% owned subsidiary, SOCO Exploration and Production Congo SA ("SOCO EPC"). SOCO EPC holds a 40.39% interest in the Marine XI Block located offshore in the shallow water Lower Congo Basin and is designated operator of the Block. SOCO EPC also holds a 100% interest in a one-year exploration licence over the Nanga II A Block, located onshore, adjacent to the coast.
SOCO holds its interests in the Democratic Republic of Congo (Kinshasa), all onshore, though its 85% owned subsidiary, SOCO Exploration and Production DRC Sprl ("SOCO E&P DRC"). SOCO E&P DRC holds a 65% working interest in the Nganzi Block, situated 50 kilometres from the west coast, and an 85% working interest in Block V, situated in the southern Albertine Graben in eastern DRC. SOCO E&P DRC is designated operator of both Blocks.
SOCO holds its interests in the Angolan enclave of Cabinda through its 80% owned subsidiary, SOCO Cabinda Limited, which holds a 17% participating interest in the Production Sharing Agreement for the Cabinda Onshore North Block.