Vietnam success makes Soco profits rocket

Oil and gas explorer Soco International reported record revenues in the first half, driven by production in Vietnam.

Revenues were up to $263.2m in the six months to the end of June, from $234.2m in the second half of 2011, when the company's 'transformational' TGT site came online.

The change TGT has made to the firm was shown by pre-tax profits, which rose to $201.9m, compared to $14.5m the first half of 2011, when the site was not operational.

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Earnings per share leapt to 29.2c, from 2c the year before.

Net working interest production for the first half of 2012 increased 521% compared to the previous year, averaging 12,197 barrels of oil equivalent per day (BOPD).

Soco said it was maintaining existing guidance of TGT gross production for the remainder of the year at around 55,000 BOPD.

But it noted field production rates would vary from day to day depending on ongoing operations - both drilling and well intervention activities - as well as facilities uptime.

"Even with the acquisitions of various interests and the expectation of adding one or more new projects later this year, all which will be funded from current cash balances, the advent of full production from TGT has transformed, and will continue to transform, the company," said Chairman Rui de Sousa.

"The priority remains to increase shareholder value," he added.

"We will continue to examine all avenues of achieving this goal including building the portfolio, buying back shares in the market or distributing excess cash to shareholders."