VAALCO Energy, Inc. Provides Operational and Financial Update
June 19 2018 - 04:45PM
VAALCO Energy, Inc. (NYSE:EGY) today announced that the workover
operations on the Avouma 2H well are complete and replacement of
the Electrical Submersible Pump (ESP) system was conducted safely
and efficiently with no injuries or environmental incidents.
The well is online producing at rates in excess of
pre-shutdown levels and is expected to stabilize around 2,000
barrels of oil per day (BOPD) gross, or 540 BOPD net to the
Company.
In addition, a third workover has commenced to
proactively upgrade the ESP system in the South Tchibala 2H well
while the Company has the hydraulic workover unit on the
platform. With the proactive replacement of the system, the
Company is mitigating the potential for a premature ESP failure by
installing a system with design enhancements that are expected to
extend the run life of the ESP. The Company will also realize
cost savings by conducting the South Tchibala 2H workover while the
hydraulic workover unit is already on the platform.
VAALCO also announced that it has executed a
hedge swap at a Dated Brent weighted average of $74 per barrel for
the period from and including June 2018 through June 2019 for a
quantity of approximately 400,000 barrels.
Cary Bounds, Chief Executive Officer, commented,
“We are pleased to have restored significant production from the
Avouma 2H well. We are realizing significant cash flow generation
at current Brent pricing, and have decided to lock in cash
generation at $74 per barrel on approximately 400,000 barrels over
the next 13 months in anticipation of a possible development
drilling campaign on our offshore Gabon asset in 2019. With the
recent elimination of all of our outstanding debt, we will continue
to strengthen our balance sheet through cash flow generation and
look to future economic development drilling opportunities.”
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. All statements, other than statements of
historical facts, included in this document that address
activities, events, plans, expectations, objectives or developments
that VAALCO expects, believes or anticipates will or may occur in
the future are forward-looking statements. These statements
are based on assumptions made by VAALCO based on its experience and
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 and other risks are further described in
VAALCO's annual report on Form 10-K for the year ended December 31,
2017 and quarterly report on Form 10-Q for the quarter ended March
31, 2018 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,
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,
Jr. 713-623-0801
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