SOCO Provides Trading Update

“The new SOCO vision is to build a growth oriented E&P company of scale, generating through-cycle total shareholder returns whilst adhering to the company’s historic focus on financial discipline and an annual dividend. In 2017, we stated we would focus on new business activity and, during the year, we reviewed a number of opportunities and continue to do so. As set out in the Company announcement on Monday 8 January 2018, discussions are ongoing with Kuwait Energy plc and the Company. There can be no certainty that any agreement will be reached between the parties and we will keep the market updated of any material developments. Operationally, we made important advances on a number of fronts in 2017. Notably, in Vietnam, we gained government approval of the Te Giac Trang Full Field Development Plan, completed development infill drilling on time and within budget and installed additional water-handling facilities on the H1 Wellhead Platform under budget. We further expanded our Vietnam portfolio, adding two new offshore blocks in the Phu Khanh Basin. Following a review of our strategic priorities, the Board has decided fully to impair the costs held on the balance sheet in relation to our non-core African assets, Marine XI and Cabinda North. There has been no change in our assessment of the potential of these assets; however, in the short term they are no longer a core priority for the Company and minimal capital will be spent on them in the near future. Steady revenues, low operating costs and a disciplined approach to capital allocation have provided the Company with a unique financial stability from which it has delivered a $30.0m capital expenditure programme (Vietnam $26.0m, Africa $4.0m) in 2017, fully funded from existing cash resources, which included the full $42.7m Mongolia payable, which we collected during the year. In addition, the Company has distributed a $21.0m cash return to shareholders though a £0.05 dividend and has embarked on a rigorous pursuit of portfolio rationalisation and business development opportunities.” Source / More: Suncor oilandgasOil and Gas News Undiluted !!! “The squeaky wheel gets the oil” Follow us: @OilAndGasPress on Twitter | OilAndGasPress on Facebook]]>