Executive Summary
SOCO International (LON:SIA) is a FTSE 250 listed oil and gas business which is based in London and focused on oil exploration and production, with interests in Vietnam, the Democratic Republic of Congo (Kinshasa), Thailand, the Republic of Congo (Brazzaville) and Angola. SOCO International aims to build core production capability in low cost production areas while also realising material upside from frontier exploration. In 2010, the Company aims to de-risk 90% of their exploration portfolio with a busy drilling programme focused on TGD in Vietnam and Nganzi in the DRC.
Company History
- SOCO plc was incorporated in July 1991 with CEO Ed Story owning 10% and Snyder Oil Corporation of the USA holding the remaining 90%. SOCO acquired its principal assets from Snyder Oil and then from acquiring an interest in Command Petroleum Limited and Holland Sea Search Holdings NV. These interests were subsequently sold to Cairn plc of the UK for cash and shares in Cairn.
- In 1996 SOCO exchanged the shares for assets from Cairn and the company was subsequently listed on the London Stock Exchange in May 1997. [1]
Current Events
- In 2005, SOCO plc sold its interests in Mongolia to PetroChina for $93 million [2]
- In 2008, the Company agreed to sell its operations in Yemen to Sinochem for $465 million. [3]
- The company is due to drill several wells in 2010 on the licences it operates. A well in Te Giac Den aimed at proving up the fan structure potential due in May/June and 2/3 in DRC Kinshasa - specifically the Nganzi prospect, a wildcat with potential..
Business Model
The Group's strategy is to have oil and gas assets in each phase of the oil and gas cycle - production, development and exploration. However, results are driven by exploration opportunities whereby success can provide exponential growth potential. The Group focuses on high quality projects in core areas of South East Asia and West Africa (as well as formerly the Middle East). It "predominantly focuses on rift basins with proven petroleum systems and pursues opportunities in untested plays, such as Basement reservoirs, or applies new technology to uncover potential immature plays". The Group's portfolio is continuously being upgraded. Disposals of assets are made when little upside potential is remaining or when…
