First Oil Flows from Second Platform on TGT Field Offshore Vietnam

SOCO, an international oil and gas exploration and production company, announces that the first flow of crude oil and gas from the H4 Wellhead Platform (‘WHP-H4’) of the Te Giac Trang Field (‘TGT’) occurred on 6th July 2012. The start of production has been achieved over one month earlier than scheduled and nearly a year ahead of the original approved development plan.

WHP-H4 is located in the south of the TGT Field in Block 16-1 in the Cuu Long Basin, off the southern coast of Vietnam, approximately 100 kilometres from Vung Tau, 20 kilometres northwest of the Bach Ho Field, and 35 kilometres west of the Rang Dong Field. The block is operated on behalf of SOCO (30.5%) and its Partners, PetroVietnam Exploration & Production Corporation (41%) and PTT Exploration and Production Public Company Limited (28.5%), by the Hoang Long Joint Operating Company which was established in 1999.

Production from the field, currently approximately 42,000 barrels of oil per day (‘BOPD’), will now be increased to the 55,000 BOPD processing capacity of the ‘Armada TGT 1’ FPSO.

Simultaneously, the PetroVietnam Drilling Services Corporation rig, the PVD-II, has arrived on location at the H1 Wellhead Platform and commenced drilling the conductor sections of a four well, infield development drilling programme.

Ed Story, President and Chief Executive of SOCO, commented:

“First oil from the second platform at the TGT Field in Vietnam marks a key milestone for the Company. We set an ambitious delivery target and it is a credit to all involved that this has been achieved ahead of schedule. We now look forward to working with our Partners to maximise the recovery and performance of the field. The success and knowledge we have gained thus far from the TGT Field will enable us to drive further shareholder value in Vietnam and the wider region.”

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Press Release, July 9, 2012