This company is one of the larger independent oil companies. Its found a lot of oil in Vietnam. It also has interests in Africa and Yemen. In Gold mining parlance its like a "late stage junior". The exit plan is reasonably clear. Be bought out at some stage by a larger company (Sinopec? BP?). With the current weakness in the oil price it seems good value. I have 8% of my net worth in this at the moment. Its not going to go mad- it might only double over the next two years. For more information see emptyend's posts on ADVFN - he really knows his stuff.

This is details about their latest oil find:

http://www.investegate.co.uk/Article.aspx?...12180701180708O

...Following the release of preliminary test results on the fifth appraisal well, the TGT-5X on the Te Giac Trang ("TGT") structure on Block 16-1 offshore Vietnam on Thursday of last week, the well was shut in for pressure build up and final tests on the Miocene Lower Bach Ho 5.2 pay zone (“LBH 5.2”) over the weekend. With testing now complete, TGT-5X had a total combined maximum flow rate of approximately 16,430 barrels of oil equivalent per day (“BOEPD”) from the LBH 5.2 and Oligocene “C” intervals.

The first drill stem test over the 32 metre Oligocene “C” interval tested water-free at a maximum rate of 7,098 barrels of oil per day ("BOPD") of 36.5 degree API gravity crude and approximately 2.07 million cubic feet of gas per day (“MMCFD”) through an 80/64 inch choke size. The most prolific interval in the other successful wells drilled on TGT, the LBH 5.2 pay zone, was perforated and tested separately between 2,841 and 2,866 metres with a maximum flow rate of 8,987 BOEPD comprising 8,104 BOPD of 41 degree API gravity crude and approximately 5.3 MMCFD through a 80/64 inch choke size.

If you are new to investing in the stock market this could be one to go for. Its relatively low risk. Put it in a share ISA to protect your returns from the tax man.

Presentation:

http://www.socointernational.co.uk/?id=47&...tyType=Document

From the motley fool:

http://boards.fool.co.uk/Message.asp?mid=1...&recscode=2

... of what Soco has done over the last year since what was widely recognised as the last great buying opportunity at £10.

http://boards.fool.co.uk/Message.asp?mid=9899876

Since then we have had:

TGT-3X success

http://www.investegate.co.uk/Article.aspx?...04260700569900B

The TGT-3X exploration well on the Te Giac Trang ('TGT') structure on Block 16-1 offshore Vietnam has completed testing operations on a separate fault block approximately ten kilometres south of last year's TGT-1X discovery well.

The drill stem test was conducted in the Miocene Lower Bach Ho 5.2 ('LBH 5.2'), the formation that was also tested in the discovery well and the primary interval in the follow up TGT-2X well. The tested interval, perforated between 2,827 and 2,887 metres, flowed at a combined maximum rate of 9,908 barrels of oil equivalent per day comprising 9,008 barrels of oil per day of 40.5 degree API gravity crude and approximately 5.4 million cubic feet of gas per day through a 88/64 inch choke size.

Log analysis of the well indicated approximately 68 metres of net pay was present in the LBH 5.2. Additionally, approximately six metres of net pay in the Lower Oligocene 'C' interval were also identified but not tested.

TGV-1X failure

http://www.investegate.co.uk/Article.aspx?...05300701087194D

The first exploration well on the 'L' prospect, on Block 16-1 in the Cuu Long Basin offshore Vietnam, Te Giac Vang 1X (TGV-1X), spudded on 2 May, reached a total measured depth of 3,926 metres in the Upper Oligocene. The well was deepened from its original prognosis due to the presence of encouraging hydrocarbon shows continuing below the original target depth. It was primarily positioned to test a closure at the Miocene Lower Bach Ho 5.2 ('LBH 5.2') level, the main productive horizon at the Te Giac Trang (TGT) discovery approximately 40 kilometres to the north.

The well intersected a clastic sequence at the LBH 5.2 horizon, however the reservoir sands were poorly developed at the location and no pay was
encountered. The sediments encountered suggest that the well was located outside the LBH 5.2 play fairway and that this fairway is to the north and west of the TGV-1X location.

KHA 1-16 Success

http://www.investegate.co.uk/Article.aspx?...10020700597607J

The Company's majority owned subsidiary, Comeco Petroleum, Inc. ('Comeco'), through which the Company holds a 16.785% net working interest in the East Shabwa Development Area in Yemen ('ESDA'), announces that the KHA 1-16 produced over 8,400 barrels of oil per day ('BOPD') when tested against a 70/64 inch choke. The well was drilled on the eastern most 3D seismic parameter as part of the continuing appraisal and development of the Basement reservoir in the Kharir Field.

CNV-4X Success

http://www.investegate.co.uk/Article.aspx?...10090700321364K

The appraisal well on the Ca Ngu Vang ('CNV') structure on Block 9-2 offshore Vietnam, the CNV-4X ST, has tested at a maximum combined rate of approximately 7,050 barrels of crude oil equivalent per day comprised of approximately 5,333 barrels of crude per day and approximately 10.3 million cubic feet of gas per day.

TGX-1X Failure

http://www.investegate.co.uk/Article.aspx?...11030700304973L

After encountering reservoir sands, the first exploration well on the Te Giac Xang ('TGX') structure on Prospect 'K' will be plugged and abandoned as initial analysis indicates that it was not drilled within structural closure. Full analysis of logs and other data will take several weeks to complete. Prospect 'K ' is a subtle closure to the west of the higher amplitude Te Giac Trang ('TGT') structure. The seismic over the area will be reprocessed and remapped to better define the structure for a possible second well.

Located in a previously untested portion of the Clastics fairway on Block 16-1, the TGX-1X well was drilled to a depth of 3,506 metres. Finding reservoir is the main risk in drilling in this fairway, so the presence of reservoir in TGX-1X is a positive indicator for future success as drilling locations step out from the initial discovery. As has been the case on every well drilled in the Clastics fairway by the Hoang Long Joint Operating Company ('HLJOC'), having oil sourced was not an issue.

TGT-5X Success

Following the release of preliminary test results on the fifth appraisal well, the TGT-5X on the Te Giac Trang ('TGT') structure on Block 16-1 offshore Vietnam on Thursday of last week, the well was shut in for pressure build up and final tests on the Miocene Lower Bach Ho 5.2 pay zone ('LBH 5.2') over the weekend. With testing now complete, TGT-5X had a total combined maximum flow rate of approximately 16,430 barrels of oil equivalent per day ('BOEPD') from the LBH 5.2 and Oligocene 'C' intervals.

In addition, funding has been received on exceptional terms due to the convertible bond, MarineX1 award has been finalised and farmed out, whilst the long term oil price has proved very stable.

Not bad at all for an increase on the shares of only about £2.50 IMHO.

I suspect that some might have taken fright of Merrill's NAV of £18+ when they have Dana at £15+ after a load of failures. It's certainly worth bearing that in mind, however Bridgewell (who have made individual calls much better in my opinion) last had NAV of approx. £15 and I don't think that's been updated since TGT-5X.

I've been switching out of some stocks recently (will post on O&G when time) but Soco is one to tuck away at current prices at their expense IMHO.

WShak
A pretty good summary IMO.

If you are new to stock market investing and you would ask me which one share to buy - this would be it. It's got decent upside and is currently going cheap.

Bridgewell have issued a note today. Amongst other things it said:

SOCO's recent share price weakness – the stock has slide 183p or 13% in the year-to-date – represents a buying opportunity, in our opinion. The company has secured rigs to drill a series of sizeable prospects on Blocks 16-1 and 9-2, offshore Vietnam, and as a result, in 2007, SOCO has the potential to generate regular, material, stock specific newsflow – a must in a volatile oil price environment. At 1199p the stock is trading at a 19% discount to our 1480p/share NAV; Buy.
...
Investors are following SOCO's exploration drilling programme offshore Vietnam closely, and the recent lack of newsflow from the region has unsettled sections of the market. The newsflow hiatus is due to an extended period of poor weather in Vietnam, which has delayed a rig move by some six weeks - SOCO suspended its successful TGT-5X well, on Block 16-1, in late December with the intention of moving the rig to Block 9-2 to drill the COD-2X structure.
...
Rig availability: SOCO has contracted rigs to undertake a continuous exploration drilling campaign in 2007. The company has contracted the Trident 9 rig until the end of May 2007 (a correction to our recent note which said March). The rig will drill the imminent COD-2X and if this 40-day well is successful it will drill a follow-on appraisal well, before moving back to Block 16-1. In March, SOCO is scheduled to take delivery of a large, new-build Maersk rig. The rig is contracted for one year (with a one year option) primarily to drill the development wells on the CNV field; however, as it is a new-build, SOCO may elect to drill a 'shake-out well' on Block 16-1 ahead of commencing the (critical) development drilling campaign on CNV – SOCO could have two rigs drilling exploration wells in March. In May, SOCO will take delivery of an Atwood jack-up rig, which will continue the exploration drilling campaign on Block 16-1.
....
Licence commitments: The participants in Block 9-2 are committed to drill the COD prospect and, although it is not as large of some of the structures on Block 16-1, the Miocene prospect warrants drilling as oil has been encountered in the immediate vicinity – SOCO's 2002 COD-1X well encountered more than 1,050m of oil shows from inter-bedded Oligocene sands and shale source rocks. With respect to Block 16-1, SOCO has mapped a series of Tertiary (Miocene and Oligocene sandstone) leads and prospects along trend from TGT as well as a large, deep, (gas-prone?) fractured-basement prospect in the south east corner of the concession. Management is keen drill-up its prospect inventory before relinquishing the sections of Block 16-1 and 9-2 that do not encompass commercial discoveries. The licence deadlines are the end of 2007; however, we understand that SOCO has the right to complete its approved budget – a firm eight-well campaign - even if this means drilling after the December deadlines.
...
Prospect inventory: Management has assembled an extensive inventory of leads and, combining recently shot 3D seismic into its database, it is keen to mature the targets to drillable status as quickly as possible. SOCO has identified a series of c.100mmbbl structures, however, investor interest is likely to focus on the P structure, a 200-250mmbbl prospect to the west of TGT (that may get drilled with the Maersk rig in March), and the large basement structure in the south east corner of the licence. With numerous prospects and two rigs operating in the area throughout 2007 SOCO is well-placed to generate regular newsflow.

Well did anyone else buy at the time? Stock now at £15.50, so somewhat fully valued. I still think it might be bought out at £20 or so in a years time, but there might be a pull back short term especially if there is a disappointing result with the drill bit.

Missed it. But oil and nat gas stocks starting to move nicely now.

Well this share continues to outperform and has almost become my first two bagger(*) on news they have found yet more oil in a very deep well off Vietnam- but they are still not sure whether they can get it out commercially. If it is a failure then the share price may go down to £14 from the current £18 at which stage I will be buying more.

At some stage someone is going to bid for Soco and £20 is the absolute minimum price it is going to go for.

Anyway more details on the fool on this thread:

http://boards.fool.co.uk/Message.asp?mid=1...=whole#10574741

Now if only I'd put all my STR with them I would be a very rich man indeed.

* It is actually a two bagger in both my childrens CTF which is nice for them.

Its now a two bagger for me

Am I selling? Am I bollocks.

The legendary emptyend's back on the fool and is doing posts like these:

http://boards.fool.co.uk/Message.asp?mid=10584729

So I would imagine a good deal of upside still.

Well this share has taken a bit of a beating in the general volatility of the last few days. I am sure you chartists can do something with some patterns at some stage and dive in. This stock will be taken over in the very near future - and I wouldn't want you to miss out.

It's held up quite well and is now sitting on its 50 day moving average. It's been above the 50 for most of the last 6 months, I wonder if it will hold?

Well, it did hold. This looks good to trade when it rebounds after falling through the 50dma as it seems to come back quite quickly. Once above the 50 it stays there even through days like today, up 42. Looks pretty good on MACD as well.

Well I'll leave those charts to those who are good at studying chicken entrails.... Meanwhile emptyend on the fool has this to say:

http://boards.fool.co.uk/Message.asp?mid=10754449

Recommendations: 16
Prompted by the fact that SOCO's share price actually fell by 45p this week [whilst front month WTI crude rose by about $5 and the long end futures added another $1, making it some $7.50-$8.00 they've now put on since the end of August] I thought I'd look at recent performance relative to others in the sector for the period since the latest oil price run started:

http://tinyurl.com/yrmkxb [ADVFN]

Burren is clearly a special case and of course there was also the disappointment for SOCO of the failure at Prospect O/TGL which deservedly trimmed 60-120p from NAV estimates, but even allowing for that I'd suggest that SOCO is trading at least £1 to £2 cheap to where it "should have been" if it had kept in line with the sector.

Of course there are uncertainties, as JonnyT rightly says.....but these are mostly likely to be resolved in the coming months and they are just as likely [more likely, IMO] to be resolved positively as negatively......

.....in which case there is certainly some significant catching-up to be done.

Personally I'm expecting to see the shares at least 20% higher in short order - and I'd also expect some analysts to start putting their M&A thinking caps on and trying to crunch some proper numbers for where SOCO might be taken out in the next few months [after we know the score on E and on the retained appraisal area on 16-1].......

.....there's no doubt whatsoever [barring some very serious negative surprises] that the "M&A price" is very substantially ahead of today's, IMO.

Dunno what the catalyst for the re-rating will be.....it may well be a sale of the Yemen stake [well above analyst estimates], perhaps a much bigger bid for Burren, or just perhaps a positive result at AA coupled with a clear and quick timeline for testing at E......or maybe something else, but I can't help but think that the market is missing a trick if it thinks there are prettier girls than SOCO to dance with in the E&P ballroom.

I can't actually remember when he's been wrong, so I would say given next Monday's likely market turmoil would present a perfect opportunity to get in IMO.

Does anyone know if it is true that a relative (son if i remember correctly) of Colonel Gadaffi is on the board/ major shareholder in SOCO??

Not sure, but quite irrelevant. Don't think he's on the board.

Thanks for the info.. I just wanted to clarify this rumour that I had heard a long time ago.

Soco Intl likes that 50dma, bounces off it every time, give or take a few percent.

Soco

£20.18 +62p

Questor says Hold

Exploration rather than long-term oil and gas production is Soco's strategy, and yesterday's disposal of assets in Yemen is another good example of its "find, establish, sell, move on" approach to doing business.

Soco has got a good price for its 16.8pc in the East Shabwa project. China's Sinochem is paying $465m, a figure that says much about the country's need to secure supplies of energy to feed a hungry economy. The money is coming in at the right time. Soco is not exactly running short of funds and facilities to carry on exploring, but its cash position is well below the promised £100m capex spend for 2008. The money from Yemen will provide financial breathing space and the cash will almost certainly be spent in Vietnam.

Soco has been exploring what is potentially a transformational find off the coast of Vietnam. An update on the well's prospects should have been announced at the end of 2007, but this was delayed because of technical problems with the oil rig. The update is now expected within the next couple of weeks. Soco boss Roger Cagle, who has been in the oil business for 30 years, said yesterday the potential find was one of the biggest prospects he had been associated with.

He would say nothing about the update, but he pointed out that, if the well lived up to expectations, it would only be the "icing on the cake". Should we read anything in that slightly cautious remark? Perhaps not. But analysts see the find as significant for the shares. Evo Securities thinks a successful well would send them to £33. Failure could see a drop to £15. They closed up 62p at £20.18 yesterday, from £12.94p last year. By all means take profits, but if you can afford the risk, wait for the Vietnam news.

http://www.telegraph.co.uk/money/main.jhtm.../cxquest105.xml

Took a dive today, -191.00 (-9.92%), 1734. Will need to find the news. Trend has been down for a while.

http://www.sharecrazy.com/share2607share/s...re&epic=SIA

Annual Report out http://www.socointernational.co.uk/

The share price has been hammered in the last few months while they wait for the result of their deep well TGD-1XST1. They even dropped something down the hole and had to fish/drill it out again.

But in the annual report they say that TGD....[has become] the prized asset in [the] portfolio and that they eagerly anticipate the outcome and they talk of the rig battling the well and they say that the results of this well could add a significant achievement attributable to 2007 performance and they say that pending the results of TGD-1XST1, the Committee will give consideration to an additional bonus award of up to 50%, in line with the maximum policy bonus rate

So they are really optimisitic that the well will flow and if it does then I would expect a 50% rise from the current share price. And the results are imminent (mind you they have been imminent for around 6 months ).

Even if the well fails it is argued the share price will still go up as the uncertainty has been removed.

I have 15% of my net wealth in this share. IMO no UK portfolio should be without it at current prices .

Anyway check out the UK motley fool discussion board - emptyend and other assorted drillers and city types really know their stuff.

http://boards.fool.co.uk/Messages.asp?bid=...mp;mid=11032074

15% is a lot, but will be well rewarded if the news is good. Not sure if all the bad news is in the price if the well fails, especially if the price of oil is correcting at that time, markets have a habit of overshooting or correcting just when you think they shouldn't. I like this company though, it is on my watchlist and it has recovered from the recent low. I need to do more research on it and will have a look at those links.

Market didn't like this today.

ADVFN market report.