VAALCO Energy Announces Resumption of Production at Avouma Well
August 25 2016 - 5:37PM
VAALCO Energy, Inc. (NYSE:EGY) today announced that the secondary
electric submersible pump (ESP) in the Avouma 2-H well on the
Avouma Platform offshore Gabon in the Etame Marin Permit was
recently started and the well is now producing at a stable
rate.
As previously announced, the primary ESP failed
in the Avouma 2-H well, and prior to attempting to start the
secondary ESP, VAALCO and the manufacturer and installer of the ESP
worked closely to optimize the startup procedure. The lower pump
was successfully started last week and performance is stable with
the well producing approximately 1,850 barrels of oil per day
(BOPD) gross or 450 BOPD net to VAALCO. The well was producing
approximately 2,700 gross BOPD or 660 BOPD net to VAALCO prior to
the first ESP failure. VAALCO is currently flowing the well
at a lower rate while monitoring the performance of the ESP.
Cary Bounds, VAALCO’s Chief Operating Officer
commented, “We are pleased to have restarted production from the
Avouma 2-H well and will continue to monitor the performance of the
secondary ESP. We are conducting a detailed investigation of
ESP failures encountered earlier this year on the platform and hope
to restore production from two shut-in wells in the fourth quarter.
The upcoming Avouma ESP replacements will utilize a more cost
effective hydraulic workover unit that is being mobilized to the
platform. The ability to restart production from the Avouma 2-H
validates our strategy of installing primary and secondary pumps in
all of our platform wells.”
About VAALCO
VAALCO Energy, Inc. is a Houston-based
independent energy company principally engaged in the acquisition,
exploration, development and production of crude oil. The Company's
properties and exploration acreage are located primarily in Gabon,
Equatorial Guinea and Angola 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, 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
expectations regarding well performance, the ability to
successfully workover wells and the costs and timing of expected
workovers. 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, 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.
Investor Contact
Al Petrie
Investor Relations Coordinator
713-543-3422
Vaalco Energy (NYSE:EGY)
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