VAALCO Provides Update on Drilling of Etame 9H Development Well and the Etame 9P Appraisal Wellbore
October 30 2019 - 3:00AM
VAALCO Energy, Inc. (NYSE: EGY; LSE: EGY) (the Company) today
provided an update on its 2019/2020 drilling program Offshore
Gabon.
At the Etame field, the Company has begun
drilling the Etame 9H horizontal development well targeting the
Gamba formation, as planned. If successful, the Etame 9H well
is expected to result in additional production coming online in
December. As previously disclosed, the Etame 9P appraisal
wellbore was successfully drilled and encountered both the Gamba
and Dentale reservoirs at targeted depths as anticipated.
After reaching total depth in the Etame 9P
appraisal wellbore, the drillpipe and tools became stuck.
VAALCO was able to cut and pull the majority of the drillpipe but
was unable to recover a portion of the drillpipe and tools at the
bottom of the wellbore. The Etame 9P appraisal wellbore was
successfully plugged back to a shallower depth, and the Company is
currently drilling the Etame 9H development well as expected. The
Etame 9P appraisal wellbore fulfills the commitment for one of the
two appraisal wellbores agreed to under the Company’s PSC Extension
and the Etame 9H development well will fulfill the Company’s
commitment for one of the two development wells agreed to under the
Company’s PSC Extension.
Based on further analysis, the Company now has
additional positive information regarding the previously-announced
results from the reservoir analysis. The Company now
estimates that there is at least a 45-foot oil column in the Gamba
reservoir with no oil-water contact. This oil column is
thicker than predrill expectations and may result in higher
ultimate oil recovery from the planned Etame 9H and Etame 11H
development wells versus predrill expectations. In addition,
preliminary analysis now indicates that VAALCO encountered at least
45 feet of good-quality Dentale oil sands with estimated gross
recoverable oil resources of 3.9 to 14.9 million barrels of oil
present in subcropping Dentale reservoirs.
Cary Bounds, Chief Executive Officer, commented,
“We are pleased to have begun drilling the Etame 9H, our first
development well in our 2019/2020 program which should add
additional production in December. Furthermore, we are encouraged
by the updated analysis of the data we obtained on the Gamba and
Dentale reservoirs from the Etame 9P appraisal wellbore which
should positively impact the estimated ultimate recoverable
reserves and resources from the field. We are in the midst of an
active work program drilling the Etame 9H development well
which will be followed by the Etame 11H development well in the
same Gamba reservoir. We look forward to providing further details
on our 2019/2020 drilling program during our upcoming third
quarter conference call scheduled for November 7.”
About VAALCO
VAALCO, founded in 1985, is a Houston, USA
based, independent energy company with production, development and
exploration assets in the West African region.
The Company is an established operator within
the region, holding a 31.1% working interest in the Etame Marin
Block, located offshore Gabon, which to date has produced over 110
million barrels of crude oil and of which the Company is the
operator.
For Further Information
VAALCO Energy, Inc.
(General and Investor Enquiries) |
+00 1 713 623 0801 |
Website: |
www.vaalco.com |
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Al Petrie Advisors (US
Investor Relations) |
+00 1 713 543 3422 |
Al Petrie / Chris Delange |
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Buchanan (UK Financial
PR) |
+44 (0) 207 466 5000 |
Ben Romney / Chris
Judd / James Husband |
VAALCO@buchanan.uk.com |
Forward Looking StatementsThis press release
includes "forward-looking statements" within the meaning of Section
27A of the Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended. All
statements, other than statements of historical facts, included in
this press release that address activities, events, plans,
expectations, objectives or developments that VAALCO expects,
believes or anticipates will or may occur in the future are
forward-looking statements. Forward-looking statements
include all statements regarding well results, wells anticipated to
be drilled and placed on production, future levels of drilling and
operational activity and associated expectations, the
implementation of the Company's business plans and strategy,
prospect evaluations, prospective resources and reserve growth, as
well as statements including the words "believe," "expect," "plans"
and words of similar meaning. These statements are based on
assumptions made by VAALCO based on its experience and perception
of historical trends, current conditions, expected future
developments and other factors it believes are appropriate in the
circumstances. Actual future results, including project plans and
schedules and resource recoveries could differ materially due to
changes in market conditions affecting the oil and gas industry or
long-term oil and gas price levels, political or regulatory
developments, reservoir performance, the outcome of future
exploration and development efforts, technical or operating
factors, inflation, general economic conditions, the Company's
success in discovering, developing and producing reserves,
production and sales differences due to timing of liftings,
decisions by future lenders, the risks associated with liquidity,
lack of availability of goods, services and capital, environmental
risks, drilling risks, foreign regulatory and operational risks,
and regulatory changes.
These and other risks are further described in VAALCO's annual
reports on Form 10-K and quarterly reports on Form 10-Q and other
reports filed with the U.S. Securities and Exchange Commission
(“SEC”) which can be reviewed at http://www.sec.gov, or which can
be received by contacting VAALCO at 9800 Richmond Avenue, Suite
700, Houston, Texas 77042, (713) 623-0801. 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.
References to thickness of oil pay or of a formation where
evidence of hydrocarbons have been encountered is not necessarily
an indicator that hydrocarbons will be recoverable in commercial
quantities or in any estimated volume. Well test results should be
considered as preliminary and not necessarily indicative of
long-term performance or of ultimate recovery. Well log
interpretations indicating oil accumulations are not necessarily
indicative of future production or ultimate recovery.
Inside Information
This announcement contains inside information as defined in
Regulation (EU) No. 596/2014 on market abuse (“MAR”) and is made in
accordance with the Company’s obligations under article 17 of
MAR.
Supplemental Reserves Disclosure
This press release contains oil and gas metrics which do not
have standardized meanings or standard methods of calculation as
classified by the SEC and therefore such measures may not be
comparable to similar measures used by other companies. Such
metrics have been included herein to provide readers with
additional measures to evaluate the Company’s performance; however,
such measures are not reliable indicators of the future performance
of the Company and future performance may not compare to the
performance in previous periods.
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