FWIW I think we are at a stage where it is a case of do you trust the management to deliver or do you think they will end up eating their own words on TGD?
I think it is worth looking back to 16th July 2002 when management released an RNS on their first well on this block...
SOCO has completed the first stage of its 2002 Vietnam drilling programme with
the drilling of the Block 16-1 Ngua O well.
The well was drilled to a depth of 3,684 metres, penetrating approximately 520
metres into basement. Mud logging indicated substantial oil shows in both the
upper Miocene and basement sections. It was determined that the reservoir
characteristics in the upper Miocene were not sufficiently developed to warrant
testing. A drill stem test ('DST') was conducted in a basement interval of
3,174 metres to 3,563 metres after encountering multiple fracture systems. The
DST recovered oil at rates of approximately 250 barrels per day over an 18 hour
interval. The well has been abandoned. A decision regarding a horizontal or
deviated well to further appraise this prospect will be deferred until after the
data gathered from this first well have been thoroughly analysed.
At the time Ed said the following...
'The results of the first of our four well drilling programme in the Cuu Long
Basin are encouraging, although we would have obviously preferred a definitive
result from the initial well. The next stage is to decide whether or not a
horizontal appraisal well, which typically dramatically increases flow rates in
this basin, can be justified on this prospect. However, we believe that the
results from this well have positive implications for the largest prospect
identified on Block 16-1. There is clearly an active hydrocarbon system on the
Block. With the data gained from this well, it appears that both the 'source'
and 'seal' risks on the larger prospect are lower than previously projected.'
One the 8th of May 2003 the management then released an RNS with another failure on block 16-1
SOCO Vietnam Limited ('SOCO Vietnam'), SOCO's 80% owned subsidiary, and partners
have now completed their drilling commitments on Block 16-1 in the Cuu Long
Do I trust the management?
Yes.
They've always struck me as having not only experience but integrity (which I personally place great store on in my E&P investments), and although I've never been able to make an AGM, the reports from those who go along always seem to indicate that they are happy to give clear answers to questions. And of course, as RC said in the recent podcast interview, as significant shareholders themselves, their interests are aligned with ours.
I wonder when this well will get underway........the anticipation is killing me :-)
