From 9th June onwards
Ed started by giving us the time of day in Viet Nam, and said the Maersk Convincer Jack-up rig was jacking up at that moment.
Thailand; was not expected to stay around for long, I took that as meaning they hope to sell Bualuang soon.
TGT; The results of their new seismic was mentioned, it has shown the oilfield can be expanded to the east. Also, he said that none of the TGT wells had been drilled into basement.
Work continues to set the initial platform this summer on TGT. Once completed, development drilling from the platform will start immediately with the target being to begin production in summer 2011.
TGD; was described as a 30 sq. km mountain. Estimated reserves in the fault block previously drilled by TGD1 and the side track, which was shown as the far left of the fan, were shown on 3 levels;
P90 = 50mmbl.
P50 = 100mmbl.
P10 = 200mmbl.
The original TGD1-ST was drilled into basement. There were 3 distinct and different pressure zones including one in a fractured layer in the volcanics.
The new TGD2X drilling is into the next fault block. It os no longer at 30% to Soco because a partner has withdrawn after an accident elsewhere; so Soco is now on a sole risk basis. I got the feeling that negotiations are still underway because my understanding does not add up. Our share of the proceeds if successful is now 58%. After the meeting I asked him who was bearing the other 42%, he said the government (presumably of Viet Nam). There is also a clause effecting the Thai share, whereby if they do not participate they have an option to buy back into the well after it has been drilled, on payment of six times the cost of the well. He said it is worth taking on the risk of failure. Perhaps someone else understood this better than I did. One bit of good news, the rig, presumably the jack–up is available after Christmas should further drilling be needed.
CNV; The first well in Phase II has indicated good water injection results. A meaningful response to the injection programme in expected around end Q3.
Congo; The source rock is pre salt, all the production has been above the salt.
Central Congo; Very old seismic indicated one structure that is 50 kms long.
Nganzi; They have 3 big and one smaller structures to drill, the first to spud in just over a months time. The wells are to be inland and a fair distance from the sea, but the distance to the export terminal is only 60 kms. He said the oil majors are not successful at having good relations with the locals, but Soco is very good in this area, they are building a hospital for example. The land rig is en-route now.
The farm – in question was discussed. He said that some of the Soco people are very bullish on Nganzi, so they will not grant a farm – in unless it is very advantageous to our company, and the AGM statement says “We will announce within several weeks whether or not we will invite a partner to join us in this venture. However, in any event we will act as operator and retain a majority and significant participating interest in the project.” They are negotiating with 2 potential partners. The possible addition to reserves is c. 600mmbls.
USA: Anadarko was mentioned and one new aspect of BP’s problem; America is now seen as a change in the perception of political risk, and some oil majors are thinking of diversifying elsewhere.
Financial risk for Soco; RDS talked about the care they take to minimize it. The option was mentioned. Soco has $245 million in cash and equivalent.
Accuracy of the above, probably 80% due to my horrible handwriting and poor hearing, but I do intend to add to my Soco holdings after the AGM. Also, I probably misunderstood some points above so please be free to correct me if you think I am mistaken anywhere.
MadDutch.
