HOUSTON, March 4, 2015 /PRNewswire/ -- VAALCO Energy,
Inc. (NYSE: EGY) today announced that on March 2, 2015, the Company spudded the post-salt
Kindele-1 well, its first exploration well on Block 5 offshore
Angola. As previously
announced, VAALCO contracted the Transocean "Celtic Sea"
semi-submersible rig to drill the Kindele-1 well to a planned total
depth of 2,250 meters in a water depth of approximately 100
meters.
Steve Guidry, Chairman and CEO,
commented, "We are very pleased to announce this major step forward
for our operations offshore Angola. After nearly nine years of continued
commitment to our Block 5 license, we are embarking on an important
phase in our efforts to explore for hydrocarbons from a second West
African country. We continue to believe that Block 5 is
within an area with potential in both post- and pre-salt formations
including the syn-rift and sag play."
As previously announced in October
2014, VAALCO, together with its working interest partner,
Sonangol P&P, entered into the Subsequent Exploration Phase
("SEP") on Block 5. Under the SEP, VAALCO and Sonangol
P&P have committed to drill a total of four exploration wells
during the exploration extension period, which expires in
November 2017. The four-well
obligation includes the original two-well commitment under the
primary exploration period that carries over to the SEP
period.
The Kindele-1 well will test a fault block adjacent to the
Mubafo discovery which tested oil from the Mucanzo sand section
within the Pinda group formations. The Kindele-1 will be
drilled to a depth of 1,800 meters to evaluate the Mucanzo sand
section. The well will then be deepened to the salt to an
estimated depth of 2,250 meters for geologic and geophysical
correlation. The well is expected to take approximately six
weeks to drill to total depth.
Additionally, the Company is nearing finalization of the seismic
processing in the outboard portion of Block 5. The seismic
processing is being performed to image pre-salt structures as
potential targets for future exploration wells on Block 5.
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. Forward-looking statements are those concerning
VAALCO's plans, expectations, and objectives for future drilling,
completion and other operations and activities. All
statements included in this document 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 include expected capital
expenditures, future drilling plans, prospect evaluations,
negotiations with governments and third parties, acquisition
opportunities and reserve growth. These statements are based
on assumptions made by VAALCO based on its 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, inflation, general
economic conditions, oil and gas price volatility, 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, 2013 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, exploration, development
and production of crude oil. VAALCO's strategy is to increase
reserves and production through the exploration and exploitation of
oil and natural gas properties with high emphasis on international
opportunities. The company's properties and exploration
acreage are located primarily in Gabon, Angola
and Equatorial Guinea in
West Africa.
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SOURCE VAALCO Energy, Inc.