Something to smile about: the sale of its 40% stake in the Bualuang oilfield off Thailand boosted Soco’s profits
Soco profits boosted by Thai sale
London-listed Soco International saw profits rise last year despite a fall in
revenues following the disposal of its Thailand assets.
23 March 2011 08:37 GMT
Total revenue for the year was $48.4 million, down from the $69.3 million
booked the previous year.
However despite the fall in revenue Soco posted an after tax profit of $101.4
million for the 12 months to 31 December, compared to $51.1 million in 2009.
The company’s profits were largely boosted by the sale of its 40% stake in the
Bualuang oilfield on Block B8/38 in the Gulf of Thailand to UK independent
Salamander Energy in September for a gain of $80.1 million.
The company’s revenues were hit by a fall in production with output averaging
2257 barrels of oil equivalent per day, compared to 2848 bpd the previous
year.
Soco chief executive Ed Story said 2010 illustrated the importance of
effective risk management in any exploration-led business model.
“Despite the fact that we had historically enjoyed an exploration success
ratio upwards of 50% and despite the fact that we had a drilling programme
focused on what appeared to be a very low risk appraisal well in the Te Giac
Den area in Vietnam and exploration targets in a highly coveted new basin
onshore in the Democratic Republic of Congo, we did not add new reserves
during the year,” he said.
“However, the actual underlying value of the portfolio continued to be
strengthened. We continued to position for a robust future – consolidating a
strong financial position, progressing a major construction project towards
first oil and ensuring the continuation of an active, high potential
exploration campaign.”
Soco said it planned to commence the first phase of production operations from
its Te Giac Trang development off Vietnam, with first oil expected in August
this year. Upon completing the first procution phase it said output from the
field was expected averaged about 55,000 barrels per day.