VAALCO Energy Announces Successful Workover on Avouma Platform Offshore Gabon
December 21 2016 - 4:30PM
VAALCO Energy, Inc. (NYSE:EGY) (“VAALCO” or the “Company”)
announced today that the South Tchibala 2-H well is back on
production after utilizing a hydraulic workover unit to replace a
failed Electrical Submersible Pump (ESP) system. The well is
currently producing at a stabilized rate of 1,600 barrels of oil
per day (BOPD) gross, or 430 BOPD net to VAALCO.
As previously announced, the ESP system failed
in both the South Tchibala 2-H and the Avouma 2-H wells this past
summer. Prior to temporarily shutting in the well after the ESP
system failed, the South Tchibala 2-H well was producing
approximately 1,700 gross BOPD or 460 BOPD net to VAALCO.
Separately, work is proceeding as planned to replace the failed ESP
system in the Avouma 2-H well and the Company expects to return the
well to production prior to yearend. A detailed inspection of the
failed ESPs is underway to determine the cause of the failures and
results from the inspections are expected in the first quarter of
2017.
Cary Bounds, VAALCO’s Chief Operating Officer
and Interim CEO commented, “We are pleased to have restarted
production on the South Tchibala 2-H well and will continue to
monitor the performance of the ESP. We are also optimistic
about restoring production from the Avouma 2-H well soon. I am
especially pleased that we have demonstrated that we can conduct
well interventions utilizing a hydraulic workover unit which
resulted in a more efficient operation at a lower cost when
compared with the prior practice of employing a drilling rig. With
the recent rise in commodity prices and the resumption of
production from the Avouma platform, we are optimistic about our
outlook for 2017.”
About VAALCO
VAALCO Energy, Inc. is a Houston-based
independent energy company principally engaged in the acquisition,
development and production of crude oil. The Company's properties
and acreage are located primarily in Gabon and Equatorial Guinea 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 liquidity and capital resources,
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 expected capital expenditures, future
drilling plans, prospect evaluations, liquidity, negotiations with
governments and third parties, expectations regarding processing
facilities, 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 oil and gas price volatility,
inflation, general economic conditions, 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, 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.
For further information: Investor Contact Elizabeth Prochnow 713-623-0801
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