Vaalco Energy Significantly Bolsters Production After Gabon Work

(Alliance News) - Vaalco Energy Inc on Wednesday said it has successfully restored a shut-in well ...

Alliance News 22 January, 2020 | 10:56AM
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(Alliance News) - Vaalco Energy Inc on Wednesday said it has successfully restored a shut-in well to production following a workover off the coast of Gabon.

The Etame 10H well had previously been shut-in, but following the workover Vaalco has added 600 barrels of oil per day of production to the field, 160 barrels of which is net to the company.

Elsewhere, at the Etame 4H well, which was brought online in December, production has stabilised at around 1,000 barrels of oil per day, of which 270 barrels is net to Vaalco.

Vaalco has now moved the drilling rig to the Etame 4P appraisal well, which will look into the previously undrilled Gamba formation. If this brings positive results, Vaalco would drill a third development well, Etame 4H, to develop Gamba.

This work, Houston-based Vaalco said, has increased overall net production Vaalco to just over 6,000 barrels of oil per day, 73% higher than the 2019 average.

Chief Executive Cary Bounds said: "We continue to see outstanding results from our 2019/2020 drilling campaign. Our recent workover has restored production from a previously shut-in well at the Etame platform and we are now entering the next phase which is at the Southeast Etame North Tchibala platform.

"Our 2019/2020 program has significantly increased production and we are excited about drilling our next appraisal wellbore, the Southeast Etame 4P wellbore. If successful, we plan to immediately drill a development well that can add new production and reserves."

"In addition, a successful appraisal wellbore can also provide us with supplementary development opportunities for future drilling campaigns. Upon drilling of the Southeast Etame 4P wellbore, Vaalco will have satisfied the drilling requirements associated with the production sharing contract extension that we finalised in 2018 with the government of Gabon," Bounds added.

Shares were 1.4% lower on Wednesday morning in London at a price of 182.50 pence each.

By George Collard;

Copyright 2020 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
VAALCO Energy Inc 160.00 GBX -13.51 -
VAALCO Energy Inc 2.02 USD -1.94 -

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