SOCO confirms Vietnam block 9-2 basement discovery

SOCO Vietnam Ltd., SOCO's 80% owned subsidiary, has tested the Ca Ngu Vang-2XA (CNV-2XA) vertical appraisal well, a follow up to the block 9-2 CNV-1X discovery well announced in September 2002.

SOCO Vietnam Ltd., SOCO's 80% owned subsidiary, has tested the Ca Ngu Vang-2XA (CNV-2XA) vertical appraisal well, a follow up to the block 9-2 CNV-1X discovery well announced in September 2002.

CNV-2XA was a vertical well 2 km from the original discovery and designed to test the extent of the oil column in the CNV basement structure. The well encountered basement at 3,940 m TVD and penetrated an oil column of 1,000 m, double the oil column intersected in the original discovery well. The well appeared to still be in the oil column, with less evidence of basement fracturing, when the well reached 5,068 m TMD. There was no evidence of formation water in the CNV-2XA well.

The CNV-2XA, although not tested as a flowing well, confirms the original discovery and that the structure is sourced with hydrocarbons. The results demonstrate a higher reserve potential for the structure, given the thickness of the oil column and the fact that it encountered oil 500 m below that in the discovery well.

As originally planned pending success of this well, SOCO will drill a horizontal follow-up section from the upper section of the vertical well. The length of the horizontal well, estimated to extend northeast toward the Rang Dong producing field, in the opposite direction from the original discovery well, depends on the size and number of fractures intersected. The plans are to put a successful horizontal section on a long-term test as the basis to declare commerciality of the CNV structure.

Additional seismic processing and interpretation is required before the Ca Ong Doi-2X well (COD-2X) can be drilled as the planned follow up well to the COD initial exploration well. Accordingly, the rig used to drill all of SOCO Vietnam's wells in the Cuu Long basin thus far will be released after the CNV horizontal section has been drilled and tested, which is expected in 2Q 2004.

SOCO Vietnam holds a 25% working interest in block 9-2 and a 28.5% interest in block 16-1 in the Cuu Long basin offshore Vietnam. Both blocks are contiguous to the Bach Ho field, which is producing 250,000 b/d and 150 MMcf/d of gas, and the Rang Dong field, which is producing 65,000 b/d and 85 MMCf/d of gas.

07/23/03

More in Drilling & Completion