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SOCO acquires 2% stake of Opeco in Block 16-1(The Saigon Times Daily Via Thomson Dialog NewsEdge) (SGT-HANOI) SOCO International Plc. has acquired 2% interest in Block 16-1 in the Cuu Long basin off the southern coast of Vietnam from Opeco Inc., adding its total interest in the Block to 30.5%, the company says in its statement. The company says its consideration paid for the acquisition is US$22 million. The purchase of the additional interest in Block 16-1 was carried out by SOCOs wholly-owned subsidiary SOCO International Limited, which acquired the entire share capital of Opeco, Inc. on June 16, 2006. Opeco Inc. holds the entirety of the shareholding of Opeco Vietnam Ltd., which holds 2% interest in Block 16-1 in Cuu Long Basin. We think this is an extraordinary opportunity to further consolidate our interest in the oil rich Block 16-1. We believe that there is no greater potential reward for every exploration dollar spent than in the Cuu Long Basin in Vietnam, Ed Story, President and Chief Executive of SOCO, says in the companys statement. SOCOs first exploration well on Block 16-1, Te Giac Vang 1X took place in early May this year, and it then moved to drill the sidetrack to the CNV-4X well on Block 9-2, where SOCO also holds 25% interest. The company plans to commence a new drilling campaign in mid-to-late September this year and expects to declare commerciality on the Te Giac Trang prospect in the near future. Ahead of the next exploration drilling on Block 16-1 in the third quarter of this year, we can focus on the required reserve assessment report and development, Story said. SOCO, headquartered in London, has interest in Vietnam, Yemen, Thailand and the Republic of Congo with production operations in Yemen. In Vietnam, SOCO holds its interests through its 80%-owned subsidiary SOCO Vietnam Ltd. Block 9-2 is operated by Hoan Vu Joint Operating Company and Block 16-1 is operated by the Hoang Long Joint Operating Company. The companys partners in Vietnam are the state oil and gas firm PetroVietnam and PTTEP Thailand. Copyright 2006 The Saigon Times Daily. Source: Financial Times Information Limited - Asia Intelligence Wire. |