SOCO International Lowers Output Guidance; Starts Drilling TGT

By Alex MacDonald

LONDON--Oil and gas explorer SOCO International PLC (SIA.LN) said Monday that it expects to reach the bottom end of its production guidance range of 10,000 to 11,500 barrels of oil equivalent a day due to lack of drilling during the year, more downtime at the Vietnamese Ca Ngu Vang field and other drilling setbacks.

The company said that drilling has started on two wells at its flagship 30%-owned Te Giac Trang field off the coast of southern Vietnam. The field's partners are putting together a plan to drill another two wells on the field. The plan is due to be submitted to the government for approval after next week.

"We are delighted to commence the first development drilling programme on TGT since early 2015," Chief Executive Ed Story said. "SOCO has the balance sheet strength to fully fund this programme from existing cash resources whilst taking advantage of the low drilling cost environment."

The TGT field, also known at the White Rhino field, was first discovered in 2005 with production starting in 2011.

More than 30 wells have been drilled at the field, which is currently producing oil from three platforms and 26 wells.

Write to Alex MacDonald at [e-mail]

(END) Dow Jones Newswires

November 07, 2016 02:52 ET (07:52 GMT)

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