Vietnam Assets

Monday, Jul 20 2009 by
16

This thread has been created to discuss the Vietnam assets. These currently consist of:

a) CNV - an operating field in block 9-2 with 155mn boe of gross 2P reserves

b) TGT - a field which is about to enter development. Gross 2p recoverable reserves of 300+mn boe (management think it will ultimately be closer to 500mn) should be confirmed soon, as the final government approval for the development plan is now very close.

c) TGD and the rest of the HPHT appraisal area - huge exploration potential of over 1bn boe P50 recoverable

d) VT appraisal area - a small discovery area likely to be relinquished

I'll fill in more details in due course.

ee


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SOCO International plc (SOCO) is an oil and gas exploration and production company. The Company's segments include South East Asia and Africa. It has field development and production interests in Vietnam, and exploration and appraisal interests in the Republic of Congo (Brazzaville) and Angola. In Vietnam, SOCO's Block 16-1 and Block 9-2 include the Te Giac Trang and Ca Ngu Vang Fields, which are located in shallow water in the Cuu Long Basin, near the Bach Ho Field. SOCO holds working interest in Block 16-1 and Block 9-2 through its subsidiaries, SOCO Vietnam Ltd and OPECO Vietnam Limited. SOCO holds its interests in the Marine XI Block, located offshore Congo (Brazzaville) in the shallow water Lower Congo Basin, through its subsidiary, SOCO EPC. SOCO holds working interest in the Mer Profonde Sud Block, offshore Congo (Brazzaville) through its subsidiary, SOCO Congo BEX Limited. SOCO's subsidiary, SOCO Cabinda Limited, holds participation interests in the Cabinda North Block. more »

LSE Price
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Mkt Cap (£m)
375.9
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66.6
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3.0



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476 Posts on this Thread show/hide all

emptyend 26th Aug '10 57 of 476
12

In reply to emptyend, post #55

Very curious to see 4 downvotes for this comment. Would anyone care to indicate why they think it isn't accurate or what they disagree with?

If there is any (other) idiot who thinks that comments like this should be taken seriously......

Probably come into the office at ten, attend a few meetings, speak on the phone, have long lunches with brokersanalysts/staff/business folk etc then leave the office most days whenever they want and visit Africa and Vietnam a couple of times a year.

On top of all this they take long holidays during thanks giving, easter, xmas... etc

.......or that adding an extra 0.5% pa (pre-tax) to the net wealth of a "pensioner" is going to be any sort of motivation for working full-time, then I'd like to hear it so I know who else to ignore.

Thanks.

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Isaac 26th Aug '10 58 of 476
20

emptyend

How do you know management work full time? And even if they did what is wrong with working Full time? A lot of people in the UK do it and not everyone does it for money! People work for various reasons and one being the social aspect working offers.

Why would management even bother to give an indication of the recoverable HC

P90 = 50
P50 = 100
P10 = 200

And then subsequently go all 'hush' 'hush' after results are published? Surely the next question is how much reserves does management think they have found in the current well?

Do you not think this is a reasonable question for PTTEP to ask Soco + Partners? As well as what does it mean for the interpretation of the block as well as the fan structure? Then surely PTTEP can put one and one together to work out 2?

If a layman like me can ask these questions I just can't see why a PTTEP can't ask the same questions?

I don't believe Soco will underplay TGD-2X Success.

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thebuffoon 26th Aug '10 59 of 476
1

Africa is just huge potential at the moment and looks way off the point in the cycle where one would expect it to be sold. Both Ed and Roger may be looking to be out,or out, before that point is reached, but that does not necessarily mean a whole company sale

That was my point.  

Of course we may be arguing over semantics, having previously talked about the African assets as being held by the Son of Soco,  However, monetising Vietnam is looking further away now than I thought it was a few short months ago.

As for what Ed and Roger do, I don't know. What I most certainly can tell you, is that having ridden an elephant;  it most certainly wouldn't be fun for a septuagenarian, even if they are lucky enough to have decent hip joints!

Buffy

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Isaac 26th Aug '10 60 of 476
20

In reply to emptyend, post #40

Do you really think a deal will be done without proving up 600mbbl oil when Soco have control of the shareholding?

Yes of course!   I wouldn't have said it otherwise.

emptyend - Did you see repo's post ?

Soco International Not for Sale as Company Seeks More Reserves, CEO SSoco International Plc Chief Executive Officer Ed Story said management won’t back a sale of the company before it can add more reserves through its exploration program in Africa and Asia.

Does that change your view that a large part of the exploration portfolio needs to be proved up before a deal can be done?

I personally find it annoying that the chances of a hostile takeover of Soco happening is low because it means we have to sit it out and wait for the management to decide when they are ready to sell up.

But then again what is wrong with an acquiror buying about 40% of the company at say £5-5.50 and then offering the management £8 for their shares? Providing an acquiror does not have to pay £8 at this stage for all of Soco shares then by buying less then half in the market at £5 then it may be a better deal for the acquiror?

Does anyhone think such an approach would be considered?

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davjo 26th Aug '10 61 of 476
4

Post 55
7 up, 7 down

I think somebody's put some dope in the air conditioning!!

...and it's getting stronger!!

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thebuffoon 26th Aug '10 62 of 476
2

I think somebody's put some dope in the air conditioning!!

...and it's getting stronger!!

It's all part of Isaac's cunning plan. He's smarter than you think.

Buffy

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emptyend 26th Aug '10 63 of 476
11

In reply to thebuffoon, post #62

It's all part of Isaac's cunning plan. He's smarter than you think.

That wouldn't be too difficult. Especially if blessed with a collection of avatars.

8 down votes now? Perhaps I'll just not bother to clarify or comment if people wish to be destructive and then duck a request to explain. After all, there is absolutely nothing in it for me to spend time on any boards......I'd be far better off just taking....taking...taking - as those who lurk without giving input habitually do!.

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davjo 26th Aug '10 64 of 476

Actually, I'm a bit bemused by this red hand malarky. I'm not someone who uses the facility myself because if I disagree with a post I'll be up front and say so in writing but since there's been quite a few anonymous smacks over the last few posts, I notice on 52, 56, 58 and 60, all Isaac posts, that I'm denied the opportunity to add a down vote because there's no red hand to click. Why's that? Just out of idle interest really!

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tournesol 26th Aug '10 65 of 476
3

Why's that?

I'd guess its because they're beyond criticism.......

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Isaac 26th Aug '10 66 of 476
17

David,

Why does'nt management contract out another rig and just drill TGD-3X and then the fan structure now?

It will save us all a year of waiting. If it meant raising another $100mn through a rights issue then so be it.

I find it incredibly annoying that we have to wait for the weather to clear before we can drill again.

If TGD-2x is done in the next 2-3 weeks then it makes sense to poke the 3X.Why do we have to wait?

I wonder what would happen if say Pontoil got annoyed of waiting and decided to make an exit. They hold about 20% of the shares.  Along with the instituional stake and privatge investo shares a hostile bid can be launched.

Pontoil is key to getting crucial backing of any bid.

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davjo 26th Aug '10 67 of 476
13

In reply to Isaac, post #66

Why does'nt management contract out another rig and just drill TGD-3X and then the fan structure now?

We're not in the 1800's gun boat era. Soco has to comply with the terms of its contract which doesn't allow them to do so.

I wonder what would happen if say Pontoil got annoyed of waiting and decided to make an exit

Well that supposes they've got the same mindset as you. Please be assured they haven't :-)

 

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kenobi 27th Aug '10 68 of 476
6

Issac,

I am no expert but takeover rules are complex, for example I understand that if you buy 30% of a listed company you are oblidged to bid for the whole company. I would have thought that if someone tried to build a stake that large in soco, it would soon become very obvious what was going on (they would have to issue rns's for example, and the price would get bid sky high, and the buyer would be left with a minority stake.

However having said that if I was considering a bid for soco in the future I would definitely start stakebuilding now, if only to make a few quid if I lost out to another bidder !

To be honest though, I'm more interested in the news from soco than in the speculation about the sale, just keep proving up the reserves, the share price will keep rising, people can top slice if they like or need to, or hold on to the big sale, as Ed said once, we'll all go home together !

cheers K

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Murakami 27th Aug '10 69 of 476
12

In reply to Isaac, post #52

Hi all, please keep the discussion on-topic. This thread was created to discuss the Vietnam assets and operational issues. If you'd like to discuss executive remuneration issues in depth, you are welcome to do so but - for the sake of good order - this should be done on a separate thread, as per rule 6 of the Posting Guidelines. Any further off-topic posts on this thread will be moderated. Thanks, M

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jonnyt 27th Aug '10 70 of 476
10

Why would Soco accept an £8 bid next year?

If the two current wells come in as P50 I'm expecting £8 in a couple of weeks.

If the fault isn't sealing and the oil water contact isn't above the fan then lets face it the fan is massively derisked perhaps with a COS above 80%

JonnyT

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emptyend 27th Aug '10 71 of 476
1

In reply to jonnyt, post #70

Why would Soco accept an £8 bid next year?

Who is that directed at and which post and thread does it relate to?

I recall using £8 somewhere as a "plucked out of the air example", merely to indicate that at £8 the two EDs have got £187mn worth of shares.....

My actual expectations aren't a million miles from yours.

ee

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jonnyt 27th Aug '10 72 of 476
1

Just saw the £8 figure when trawling through 30 plus posts, so a general comment not meant to offend anyone especially not my old mate emptyend!

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emptyend 27th Aug '10 73 of 476
1

In reply to jonnyt, post #72

Ok - understood. Perhaps trawl more frequently in future?  ;-)

cheers

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freddythefish 27th Aug '10 74 of 476
1

http://www.youtube.com/watch?v=uprjmoSMJ-o

...... well, it is the silly season


..........I'll get my coat

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thebuffoon 27th Aug '10 75 of 476
5

Who is that directed at and which post and thread does it relate to?

Do keep up ee!  Isaac pondered why a buyer doesn't offer Roger and Ed £8 to get control of their shares (I know...don't bother saying it..)

As for Isaac having multiple avatars.... he hasn't.  He's just got the two; the one you know, and the DVD.

Buffy

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emptyend 27th Aug '10 76 of 476
1

In reply to thebuffoon, post #75

Do keep up ee!  Isaac pondered why a buyer doesn't offer Roger and Ed £8 to get control of their shares

I think you are mixing me up with someone who might have taken such a post seriously enough to have actually read it.

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