VAALCO Energy Announces the Successful Workover of Avouma 2-H Well That is Now Producing 2,700 Barrels of Oil Per Day Gross
January 05 2017 - 6:45AM
VAALCO Energy, Inc. (NYSE:EGY) (“VAALCO” or the “Company”)
announced today that the Avouma 2-H well on the Avouma Platform
offshore Gabon is back on production after utilizing a hydraulic
workover unit to replace a failed Electric Submersible Pump (ESP)
system. The well is currently producing at a stabilized rate
of 2,700 barrels of oil per day (BOPD) gross, or 730 BOPD net to
VAALCO. With the addition of the two recent workover wells,
total Company net production is currently averaging 4,600 BOPD.
As previously announced, the ESP systems failed
in both the South Tchibala 2-H and the Avouma 2-H wells on the
Avouma Platform this past summer. Prior to temporarily
shutting in the Avouma 2-H well after the ESP system failed, the
well was producing approximately 2,400 gross BOPD or 650 BOPD net
to VAALCO. Following completion of workover operations on the
South Tchibala 2-H, previously described in a press release dated
December 21st, workover operations on the Avouma 2-H were completed
and the well was put back on production. The entire operation was
conducted safely and efficiently with no injuries or threats to the
environment. All personnel and equipment utilized during the
combined operations on the two wells have been demobilized. The
detailed inspection of the failed ESP components continues and it
is expected that the cause of the failures will be determined
during the first quarter of 2017. Monitoring of ESP operation
and production optimization procedures continues for both
wells.
Cary Bounds, VAALCO’s Chief Executive Officer
commented, “Following the successful workover of the South Tchibala
2-H well, we are pleased to have also restored production from the
Avouma 2-H well at a higher rate than when it went offline this
past summer. We have once again demonstrated our ability to safely
and successfully conduct well interventions utilizing a hydraulic
workover unit. Our net production has risen to approximately 4,600
barrels of oil equivalent per day, our highest rate since early
summer 2016. We are pleased to begin 2017 with an attractive
combination of strong production volumes and higher oil
prices.”
About VAALCO
VAALCO Energy, Inc. is a Houston-based
independent energy company principally engaged in the acquisition,
development and production of crude oil. The Company's properties
and acreage are located primarily in Gabon and Equatorial Guinea in
West Africa.
This news release includes "forward-looking
statements" within the meaning of Section 27A of the Securities Act
of 1933 and Section 21E of the Securities Exchange Act of 1934.
Forward-looking statements are those concerning VAALCO's plans,
expectations, and objectives for liquidity and capital resources,
future drilling, completion, workover and other operations and
activities. All statements, other than statements of historical
facts, included in this release that address activities, events or
developments that VAALCO expects, believes or anticipates will or
may occur in the future are forward-looking statements. These
statements may include expected capital expenditures, future
drilling plans, prospect evaluations, liquidity, negotiations with
governments and third parties, expectations regarding processing
facilities, and reserve growth. These statements are based on
assumptions made by VAALCO based on its experience, perception of
historical trends, current conditions, expected future developments
and other factors it believes are appropriate in the circumstances.
Such statements are subject to a number of assumptions, risks and
uncertainties, many of which are beyond VAALCO's control. These
risks include, but are not limited to oil and gas price volatility,
inflation, general economic conditions, the Company's success in
discovering, developing and producing reserves, lack of
availability of goods, services and capital, environmental risks,
drilling risks, foreign operational risks, and regulatory changes.
These and other risks are further described in VAALCO's annual
report on Form 10-K for the year ended December 31, 2015,
subsequent quarterly reports on Form 10-Q, and other reports filed
with the SEC. Investors are cautioned that forward-looking
statements are not guarantees of future performance and that actual
results or developments may differ materially from those projected
in the forward-looking statements. VAALCO disclaims any intention
or obligation to update or revise any forward-looking statements,
whether as a result of new information, future events, or
otherwise.
For further information: Investor Contact Elizabeth Prochnow 713-623-0801
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