VAALCO Energy Provides Operational Update
November 28 2017 - 4:50PM
VAALCO Energy, Inc. (NYSE:EGY) today announced that the workover
operations for the South Tchibala 2-H and the South Tchibala 1-HB
wells were completed, and the entire operation was conducted safely
and efficiently with no injuries or environmental incidents.
However, on November 24, the electrical submersible pump
(ESP) in a different well on the same platform, the Avouma 2-H well
failed, resulting in that well being temporarily shut-in. The
well was producing approximately 1,925 barrels of oil per day
(BOPD) gross, or 520 net to the Company, prior to being
shut-in.
As previously announced, the ESP systems failed
in both the South Tchibala 2-H and the South Tchibala 1-HB wells on
the Avouma Platform. Following completion of workover operations on
the South Tchibala 1-HB, which was restored at a rate of 1,100 BOPD
gross, or 300 BOPD net to VAALCO, workover operations on the South
Tchibala 2-H were completed and that well is currently producing at
a stabilized rate of about 1,225 BOPD gross, or 330 BOPD net to
VAALCO. With the addition of the two recent workover wells,
and taking into account the suspension of production from the
Avouma 2-H well, total Company net production is currently
averaging approximately 3,950 BOPD.
Cary Bounds, VAALCO’s Chief Executive Officer
commented: “Following the successful workover of the South Tchibala
1-HB well, we are pleased to have also restored production from the
South Tchibala 2-H well, with a slightly higher combined production
rate from the two wells than when they went offline. Unfortunately,
we experienced another failure this past week, but we expect to
mobilize a hydraulic workover unit in the first quarter of 2018 to
repair the ESP and return the well to production. These workover
projects to repair ESP failures, utilizing a lower cost hydraulic
workover unit, pay out in approximately two months. While we still
expect our full year production to come in within previous guidance
of 4,100 to 4,200 BOPD, with our production currently averaging
approximately 3,950 BOPD, we now expect our fourth quarter
production to be near our current rate. We will continue to
demonstrate our ability to safely, successfully and economically
conduct well interventions and restore production.”
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.
Investor Contact Phil Patman
713-623-0801
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