HOUSTON, March 30, 2015 /PRNewswire/ -- VAALCO
Energy, Inc. (NYSE: EGY) today announced that the post-salt
Kindele-1 well, its first exploration well on Block 5 offshore
Angola, was drilled to a total
vertical depth of approximately 1,829 meters. The objective
reservoir, the Mucanzo sand formation in the Pinda Group section,
was found to be water-bearing and the well is currently in the
process of being plugged and abandoned.
Given the results of the well, earlier plans to drill to 2,250
meters for geologic and geophysical correlation will not be
undertaken.
Steve Guidry, Chairman and CEO,
commented, "We are disappointed with the outcome of this first well
drilled offshore Angola. The well targeted a three-way fault
closure where the fault appears to have not provided the required
lateral seal. The Mucanzo target sands were present and of a
very high quality. We did find non-commercial hydrocarbon
shows higher in the Pinda Group, in the overlying Catambela
formation, indicating we were in a proven hydrocarbon system.
Overall, we remain optimistic about the additional prospects and
leads, both pre- and post-salt, on the block."
As previously announced in October
2014, VAALCO, together with its working interest partner,
Sonangol P&P, entered into the Subsequent Exploration Phase
("SEP") on Block 5. Under the SEP, VAALCO and Sonangol
P&P have committed to drill a total of four exploration wells
during the exploration extension period, which expires in
November 2017. The four-well
obligation includes the original two-well commitment under the
primary exploration period that carries over to the SEP
period.
VAALCO has recently completed the seismic processing of over
2,025 square kilometers of 3D data in the outboard portion of Block
5. The Company has already identified several new pre-salt
and post-salt leads as future exploration targets to be evaluated
on 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,
negotiations with governments and third parties, acquisition
opportunities and reserve growth. These statements are based
on assumptions made by VAALCO based on its 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, 2014 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 9800 Richmond Avenue, Suite
700, Houston, Texas 77042, (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.
Investor
Contact
Gregory R.
Hullinger
Chief Financial
Officer
713-623-0801
|
Media
Contact
Tim Lynch / Jed
Repko
Joele Frank,
Wilkinson Brimmer Katcher
212-355-4449
|
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SOURCE VAALCO Energy, Inc.