VAALCO Energy Provides Update on Operations
September 15 2016 - 6:45AM
VAALCO Energy, Inc. (NYSE:EGY) today provided an operational update
relating to its activities in Gabon.
As previously disclosed, in late July the
primary electrical submersible pump (ESP) failed in the Avouma 2-H
well on the Avouma Platform offshore Gabon in the Etame Marin
Permit. Prior to attempting to start the secondary ESP, VAALCO and
the original equipment manufacturer which installed the ESP worked
closely to re-design the start-up procedure and adjust the
operating conditions in an effort to prevent another ESP failure.
The lower pump was successfully started in August and remained
operational for approximately 10 days. At the time of the
secondary ESP failure, the well was producing approximately 1,850
barrels of oil per day (BOPD) gross or 450 BOPD net to the
Company. VAALCO has attempted to restart the lower ESP
without success and the well is temporarily shut-in pending a
workover.
The Company is in the process of mobilizing a
hydraulic workover unit to the Avouma Platform to recover failed
ESPs in the Avouma 2-H well and the South Tchibala 2-H well.
Both wells produce from the Avouma platform and both wells have
recently experienced failed ESPs. After removing the ESPs, VAALCO
plans to immediately install a replacement ESP in the Avouma 2-H
well and anticipates restoring production from the well by mid
fourth quarter of this year. The failed ESPs will be sent to
the manufacturer’s facilities for a root cause investigation to
determine the failure mechanism. Once the cause of the ESP
failures is understood, appropriately modified ESP systems will be
installed in the South Tchibala 2-H well and, if necessary, the
Avouma 2-H well.
The Company further commented that its Gabon
operations have thus far not been impacted in any way by recent
activities in the country associated with the presidential election
last month. The results of the election are being reviewed by
the authorities in Gabon as required in their constitutional
process. An announcement of the final result is expected
later in September. VAALCO continues to follow its
election period protocol until the results are finalized.
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, the costs and timing of expected
workovers and statements regarding the potential for civil unrest
in the countries where we operate. 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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