This thread has been created to discuss the Vietnam assets. These currently consist of:
a) CNV - an operating field in block 9-2 with 155mn boe of gross 2P reserves
b) TGT - a field which is about to enter development. Gross 2p recoverable reserves of 300+mn boe (management think it will ultimately be closer to 500mn) should be confirmed soon, as the final government approval for the development plan is now very close.
c) TGD and the rest of the HPHT appraisal area - huge exploration potential of over 1bn boe P50 recoverable
d) VT appraisal area - a small discovery area likely to be relinquished
I'll fill in more details in due course.
ee
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SOCO International plc is an international oil and gas exploration and production company. The Company has oil and gas interests in Vietnam, which includes Block 9-2 and Block 16-1; Republic of Congo (Brazzaville), which includes Marine XI Block and Marine XIV Block, the Democratic Republic of Congo (Kinshasa), consists of Nganzi block and Block V and Angola, which include Cabinda Onshore North Block. The Company's operations are located in South East Asia and Africa. It holds its interests in the Republic of Congo (Brazzaville), through its 85%-owned subsidiary, SOCO Exploration and Production Congo SA (SOCO EPC). It holds its interests in the Democratic Republic of Congo (Kinshasa) through its 85%-owned subsidiary SOCO Exploration and Production DRC Sprl. Te Giac Trang (TGT) field’s Phase I production began on August 22, 2011. Total production net to its working interest from continuing operations, during the year ended December 31, 2011, were 5,437 barrels of oil equivalent per day. more »
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Hi again, Isaac,
Agree that it's good to have 'disruptive' rather than 'consensus' comments, as the former are more likely to invite us to revisit our (benignly held) assumptions.
I have a problem, however, when the disruption seems to come from what seems to me an inconsistent approach, rather than an inconsistent conclusion.
Have you looked at another (Fool) favourite - Indigovision Group (LON:IND) ? They are high - end CCTV imaging and interpretation and appear to be leaders in their field. Good financials, good trading, focussed / involved director/shareholder /management.
I've been an enthusiastic follower for years. It hasn't performed so far. It may yet do so. Sometimes these things happen. What we expected to take 3 years takes 5 to 7 - or doesn't happen at all.. Stuff happens. Get over it/get it in perspective. If your portfolio is sufficiently diversified, it won't matter in the long run - it'll all come out in the wash....
Remember, : The good isn't enemy of the best : I'm happy to get 'the good' - which I happen to think includes Soco....
And here's me thinking this thread was entitled "Vietnam Assets".
It's beginning to read more like "Mrs Dale's Diary"
Hi davjo,
Well taken ! (Note to self : check out Mrs Dale's Diary).
A while back I asked why you were much more bullish re SIA' s unproven (VietNam) assets than you were/appear to be re DNX's unproven NS and other assets.
I appreciate there's been a lot more poking in the neighbourhood of the former, but at the end of the day, I wonder whether anything other than drill-bit success counts for much (to industry OR analyst) anywhere that either DNX or SIA operate, so am not clear where your apparent confidence re the former comes from, until the drill has spoken....
Feel free to speak only to the VietNam assets part of the question :> !
In reply to extrader, post #89
A while back I asked why you were much more bullish re SIA' s unproven (VietNam) assets than you were/appear to be re DNX's unproven NS and other assets.
Apologies if I didn't previously answer your question directed at me. I must have missed it. In short, unlike Dana, Soco's stuff is massively more focused into two concentrated areas. In both of these areas, Soco has spent many years developing governmental relationships crucial to both securing very attractive areas of prospectivity and lucrative terms. This is a completely different world in which Dana has focused its main efforts on production in the NS and associated areas.
In leveraging their political expertise, Soco have gained the sort of acreage Dana couldn't hope to ever get a foothold in. Dana's growth prospects centre upon a mix of buying local assets in a relatively safe environment at auction i.e. at open market price and exploring in same regions of high fiscal regimes. Soco look for above average prospectivity at rather more advantageous fiscal terms. Netback returns for them are probably double that expected for Dana.
Haven't got time to expand, it's my Ruby Wedding Anniversary tomorrow and there's things to be done...even at thius late hour :-)
Hi davjo,
Thanks for the considered reply - esp. in view of competing claims on your time !
Pls accept my sincere, if anonymous, congratulations on achieving such a milestone - and all the best for the future.
In reply to davjo, post #88
I'm worried about Davjo...
Premium prices being obtained for Vietnam crude:
...just for reference. And there is a useful table here of the pricing of all benchmark grades of oil:
http://tonto.eia.doe.gov/dnav/pet/pet_pri_wco_k_w.htm
ee
I have been doing some heavy duty thinking about imminent news and what to do about it. I was trying to decide whether to add to my position now or wait for drilling news. I see three possibilities, Vietnam first, Congo first or both at the same time. I spoke to someone at Soco and they said they weren't stage managing the timing and they would announce as soon as they had news on either well. So I decided rather than trying to second guess which well result may come first and what is the probable outcome/market reaction I decided to buy some more today at circa 460p. If both wells have negative results I could see the price dipping sub 400p short term. But as detailed on another thread TGT in its current form (circa300MB) and CNV are probably worth close to 500p per share provided the oil price and US dollar doesn't crater. Plus there is development drilling on TGT which should boost 2P. I would expect if TGD failed it wouldn't be long before Vietnam was sold so I shouldn't be locked into SIA for ages at a loss(Hopefully).
Anyone want to guess what the market reaction would be if TGD was success and DRC a failure? I'm not sure the wider market understands the significance of a good result on TGD.
As always DYOR.
In reply to unwise2, post #94
Hello unwise,
Did you reach the obvious conclusion and decide to repair to the pub whilst the market sorts it out ? :-)
Putting that less kindly, I am 100% certain that it doesn't! Though of course whether we get such a "good result" we'll have to wait and see!
Incidentally - there is no chance at all of the company "managing" newsflow at this stage.....though I guess it would be tempting to wait for a few hours if they should happen to be in a position to say "TD'd and testing" in respect of both wells!.
cheers
ee
In reply to emptyend, post #95
EE
Did you reach the obvious conclusion and decide to repair to the pub whilst the market sorts it out ? :-)
Had a nice Pinot noir! (Before anyone calls me soft I like proper ale to.)
Regards
unwise
What's the latest on the estimated time for some kind of result from the two wells ?
I was under the impression that any time now, I guess sw10's law will kick in and it'll be a couple
more weeks ? anyone know the current expectations ?
K
Vietnam Discovery
The Hoang Long Joint Operating Company, operator of Block 16-1 in the Cuu Long
Basin offshore Vietnam, announces that the Te Giac Den appraisal well, TGD-2X,
encountered hydrocarbons in a clastics sequence at approximately 4,450 metres
measured depth. Drilled to appraise the "E" prospect discovery, TGD-2X reached
total depth of 4,669 metres after penetrating the target hydrocarbon zone in the
Oligocene "E" formation.
The well logging is ongoing, however, drilling
shows and early log interpretation indicate two main reservoir sand intervals.
Approximately 40 metres will be tested after a 7" liner is set and cemented.
Testing is expected to take approximately three weeks. After the completion of
testing there will be a further release with results and mapping a way
forward.
In reply to djpreston, post #98
No surprise there then.... ;-)
I'll be interested to see what is said about "mapping a way forward" in due course!
ee
YIPPEEEEEEEEEEEEEEEEE!!!!!!!!!!!!!!!!!!!!!! :D
Looks like yesterday was a good day to add to my position! Wonder what the market reaction will be?
In reply to unwise2, post #101
Today is even better.
In reply to puneetk, post #102
Hello puneetk
If you invent a reliable crystal ball, let me know I'd be happy to hire it. It was always going to be the case that the share price would drop if a well in DRC failed, that was part of my consideration, but in reality I had no idea what was going to happen so decided to take the leap based on downside protection at circa 460p. If TGD doesn't flow at commercial rates then I think we will see a bigger drop at least short term.
News from the latest four TGTwells is out......
..better than expected, IMO
As the great Johnny Nash once said.
"There are more questions than answers"
http://www.oilvoice.com/n/SOCO_International_Provides_Vietnam_Development_Operations_Update/fde076687.aspx
http://www.proactiveinvestors.co.uk/companies/news/26034/socos-vietnam-programme-gets-off-to-an-encouraging-start--26034.html
http://www.sharecast.com/cgi-bin/sharecast/story.cgi?story_id=4084655
not sure they really add much on top of the announcement , the the feel is positive,
so either we do a deal before, or roll on august, lets get some production data,
K