SOCO International plc
("SOCO" or "the Company")

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, Yemen, Thailand, the Republic of Congo (Brazzaville) and the Democratic Republic of Congo (Kinshasa) with production operations in Yemen.


Current production in the East Shabwa Development Area is up over 12,000 barrels of oil per day ("BOPD") from the 2005 year average. Drilling results and the addition of a self contained production facility have enabled the fields to exceed all previous production records with production exceeding 45,000 BOPD.


A number of successful development wells have been drilled on the field since the February 2006 update. These include the KHA-1-12 well in the western part of the structure, the KHA-1-14 well in the southern flank of the structure and the KHA-1-07.G1 sidetrack, which was drilled as a water injection well but completed as a producer based on drilling results. These wells are all connected to the production facilities and were tested at rates between 5,500 and 8,000 BOPD.

The drilling of wells designed to ensure field pressure maintenance is being accelerated in parallel. The KHA-1-11 gas injection well is nearing completion. It is being drilled using underbalanced drilling technology that allows the assessment of connectivity between a nearby producer and an actively drilling injection well. Gas injection is scheduled to commence late summer. The KHA-1-13 water injection well, designed to provide pressure support to the eastern end of the structure, has been connected to the water injection system.

Currently, the KHA-1-16 production well, designed to continue the delineation of the reservoir in the eastern part of the structure as currently mapped, and the KHA-1-17 water injection well, aimed at providing pressure support to the wells draining the northwest end of the structure, are being drilled.


The first Jathma exploration well, the JAT-01 that tested over 1,900 BOPD, is currently being prepared for long term production. The oil produced will be trucked to the existing Kharir facilities for processing and export, enabling rapid and economic development.

The sidetrack of the second exploration well in the Jathma area, the JAT-02 well, has been completed. The objective of the sidetrack was to evaluate fracture development away from the original wellbore. Testing programmes on the JAT-02-ST and the exploration well on the eastern side of the Jathma area, JAT-04, have been completed. Both wells encountered significant oil columns, but neither produced commercial volumes of hydrocarbons when tested.

An evaluation of the results of all the Jathma area wells drilled to date will now be conducted. A 3D seismic programme is currently being considered to acquire better definition of the fracture zones in the Jathma area.


The sidetrack of the Ca Ngu Vang appraisal well, CNV-4XST, is currently at 4,927 metres measured depth, just above Basement. Logging operations in the Oligocene have been completed and preparations have begun to run 9-5/8 inch casing prior to drilling into the Basement reservoir horizon.

Following this well, the drilling campaign in the Cuu Long Basin will continue with the arrival of the Transocean Trident 9 jack-up rig.


A contract has been awarded to PGS Overseas AS for the acquisition of a 1,200 square kilometre 3D seismic programme. The Ramform Explorer is expected to begin acquisition in early October.

Ed Story, President and Chief Executive of SOCO, commented:

"There is a lot of activity across the asset portfolio.

The ESDA partners have drilled a series of superb high performance wells in the Kharir Basement. With the production capacity reaching the facility limits, the partnership is focusing on ways of upgrading the facility. Success of both the water injection and producer wells is good news for improving oil recovery in the Basement.

We are just above the top of Basement in the CNV-4X ST having successfully drilled through the operationally problematic section that forced us to abandon the original well-bore.

Operations will begin in earnest on Marine XI with the 3D seismic acquisition programme now set to begin.

We expect exciting news flow throughout the rest of the year."

1 August 2006


SOCO International plc
Roger Cagle, Deputy Chief Executive and Chief Financial Officer
Tel: 020 7747 2000

Pelham Public Relations
James Henderson
Alisdair Haythornthwaite
Tel: 020 7743 6676


The Company holds its interests in Yemen through Comeco Petroleum, Inc. ("Comeco"), in which SOCO holds a 58.75% interest. Comeco holds a 28.57% interest in the East Shabwa Development Area in Block 10 in Yemen. The East Shabwa joint venture is operated by TOTAL E & P Yemen (28.57% interest) under a production sharing agreement with the government of Yemen. The other joint venture partners are Occidental Yemen Ltd. (28.57% interest) and Kuwait Foreign Petroleum Exploration Co. (14.29% interest).

SOCO holds its interests in Vietnam, all in the Cuu Long Basin offshore, through its 80% owned subsidiary SOCO Vietnam Limited ("SOCO Vietnam") and through its 100% ownership of OPECO Inc. SOCO Vietnam 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 Inc. 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 ("SOCO EPC"). SOCO EPC is the designated operator of Marine XI.

Pharos Energy plc is aware of attempts to impersonate the company under its previous name, SOCO International plc, on social media. Pharos does not have a Facebook page.