(Reuters) – British oil explorer Soco International (SIA.L) said an appraisal well near to its key oil field off the coast of Vietnam found hydrocarbons and it would need to carry out tests before giving more details on the find.
Soco, which owns a 30.5 percent stake in the block alongside Vietnam’s state oil group Petrovietnam PVD.HM and Thailand’s state-run PTT Exploration and Production (PTTE.BK), said on Wednesday initial results indicated two main reservoir sand intervals.
The well, TGD-2X on block 16-1, was targeting around 100 million barrels of proven plus probable oil reserves.
Soco said further tests would take around three weeks after which it would release the results and update on plans to develop the discovery.
TGD-2X was drilled on an area which boarders the Te Giac Trang oil field which Soco and its partners are currently developing, targeting first oil production of 50,000 barrels of oil per day in mid-2011.
Shares in Soco closed at 470.4 pence on Tuesday, valuing the company at 1.5 billion pounds ($2.31 billion).
(Reporting by Sarah Young; Editing by Matt Scuffham)