HOUSTON, Jan. 8, 2014 /PRNewswire/ -- VAALCO Energy, Inc.
(NYSE: EGY) today provided the following update on its recent
activities:
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Offshore Gabon
In December 2013, VAALCO spudded
an exploration well in the Dimba prospect, located approximately
seven miles northeast of the Etame field offshore Gabon. The exploration well is being drilled
by the contracted rig, the KCA Deutag "Ben Rinnes," in
approximately 175 feet of water and is intended to evaluate both
the Gamba and deeper syn-rift formations. In addition, the rig will
be used to redrill the S. Tchibala 1-H well, which experienced a
casing failure in early 2013, and to perform a workover of the
Avouma 2-H well to replace a failed submersible pump assembly.
Construction work on the two production platforms for the
additional development of the Etame Marin block is continuing on
schedule, with one platform expected to be installed in the Etame
field and the second platform to be installed between the Southeast
Etame and North Tchibala fields in the second half of 2014. In
March 2014, a six-day shutdown of the
Etame Marin block has been scheduled to upgrade the safety systems
and perform general maintenance and repairs on VAALCO's leased
Floating, Production, Storage and Offloading (FPSO) vessel. Other
maintenance will be performed in the field to take advantage of the
FPSO outage.
In addition, VAALCO confirmed that it successfully completed an
end of year lifting, bringing its total fourth quarter 2013 crude
sale liftings to four. On a gross basis, liftings from the FPSO in
the Etame Marin block offshore Gabon totaled approximately 2.2 million
barrels in the fourth quarter of 2013, as compared to approximately
2.0 million barrels in the fourth quarter of 2012. Liftings in the
third quarter of 2013 were approximately 1.4 million barrels on a
gross basis.
Angola
VAALCO has entered into an agreement to license and reprocess 3D
Seismic data covering the deeper water segment of Block 5, offshore
Angola. Under the terms of the
agreement, approximately 1060 square kilometers of 3D data will be
licensed, merged with a previously acquired 1175 square kilometers
3D survey, and reprocessed through Pre Stack Depth Migration, a
seismic imaging technology utilized to better define geologic
structures. The reprocessed data will enable the Company to better
define the Ombundi and other high potential pre-salt leads in the
deeper water portion of Block 5.
Forward-Looking Statements
This document 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.
Forward-looking statements are those concerning VAALCO's plans,
expectations, and objectives for future drilling, completion and
other operations and activities. All statements included in this
document 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 include
expected capital expenditures, future drilling plans, prospect
evaluations, objectives and operations, 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, inflation, general economic conditions, oil and gas price
volatility, 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, 2012, its Form 10-Q for
the third quarter filed on November 7,
2013, and other reports filed with the SEC which can be
reviewed at http://www.sec.gov, or which can be received by
contacting VAALCO at 4600 Post Oak Place, Suite 300, Houston, Texas 77027, (713) 623-0801.
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.
About VAALCO
VAALCO Energy, Inc. is a Houston based independent energy company
principally engaged in the acquisition, exploration, development
and production of crude oil. VAALCO's strategy is to increase
reserves and production through the exploration and exploitation of
oil and natural gas properties with high emphasis on international
opportunities. The company's properties and exploration acreage are
located primarily in Gabon,
Angola and Equatorial Guinea in West Africa.
SOURCE VAALCO Energy, Inc.