Not a good day to issue bad news.
Oil exploration and production group Soco International - which operates in Vietnam and the Congo - has dropped 29.7p to 300.5p, down 9%, following a disappointing update.
It announced a delay in increasing production at its 30% owned Te Giac Trang field in Vietnam, as well as an inconclusive result from the Mindou Marine 1 exploration well in the Republic of Congo. Analyst Phil Corbett at RBS said:
The interim management statement is a touch disappointing for choice - the TGT oil field development offshore Vietnam is at 35,000 barrels of oil per day. Previous guidance called for a ramp-up to Phase 1 plateau of 55,000 barrels by the end of the year although alterations to development plan mean that has shifted back into the first quarter of 2012. [It] doesn't look like anything overly serious at this stage although wording of statement could mean the market adopts a cautious stance in the near term.
The MIM-1 exploration well offshore Congo-Brazzaville (the most important well for Soco in near-term) looks to have been unsuccessful although final results yet to come in. We were carrying a risked 5p in our exploration model which will be removed.
