VAALCO Announces Completion of 3-D Seismic Survey Data Acquisition Over Entire Etame Marin Block
December 07 2020 - 2:00AM
VAALCO Energy, Inc. (NYSE: EGY; LSE: EGY) (“VAALCO” or the
“Company”) today announced that the acquisition of three
dimensional (“3-D”) seismic data at the Etame Marin block offshore
Gabon has been completed.
Highlights
- Completed the acquisition of nearly
1,000 square kilometers of new dual-azimuth proprietary 3-D seismic
data over the entire Etame Marin block which will be used to
optimize and de-risk future drilling locations and potentially
identify new drilling locations;
- Enhances sub-surface imaging by
merging legacy data with newly acquired seismic allowing for the
first continuous 3-D seismic over the entire block;
- Estimates the total costs of both
the acquisition and processing of seismic data to be approximately
$14 to $16 million gross over the period from Q4 2020 through Q4
2021 and VAALCO expects to fully fund its portion with cash on hand
and cash from operations;
- Processing of the seismic data
expected to begin in January 2021 with all data expected to be
fully processed and analyzed by Q4 2021; and
- Planning for the commencement of
the next drilling campaign at Etame in late 2021 or early
2022.
Cary Bounds, Chief Executive Officer, commented,
“We are very pleased to have completed the acquisition of our new
proprietary 3-D seismic survey over our entire Etame Marin Block.
We will now proceed with the processing and analysis of the data
that has been collected. Over the past 20 years, we have
capitalized on the significant resource potential at Etame by
increasing the ultimate recovery from the initial estimate of 30
million gross barrels of oil to 147 million gross barrels of oil on
a 2P basis. Looking ahead, our new 3-D seismic survey is a vital
tool in helping us unlock the remaining 116 million gross barrels
of oil reserves and resources identified on the license. The new
seismic data will help us to optimize every location that we plan
to drill and potentially identify new locations to add to our
drillable inventory. Additionally, our recent announcement of the
acquisition of Sasol’s interest at Etame combined with the new 3-D
seismic survey underscore our confidence in the long-term potential
at Etame.”
About VAALCO
VAALCO, founded in 1985, is a Houston, USA
based, independent energy company with production, development and
exploration assets in the West African region.
The Company is an established operator within
the region, holding a 33.6% participating interest in the Etame
Marin block, located offshore Gabon, which to date has produced
over 118 million barrels of crude oil and of which the Company is
the operator.
For Further Information
VAALCO Energy, Inc. (General and Investor
Enquiries) |
+00 1 713 623 0801 |
Website: |
www.vaalco.com |
|
|
Al Petrie Advisors (US Investor Relations) |
+00 1 713 543 3422 |
Al Petrie / Chris Delange |
|
|
|
Buchanan (UK Financial PR) |
+44 (0) 207 466 5000 |
Ben Romney / Kelsey Traynor / James Husband |
VAALCO@buchanan.uk.com |
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 may
include statements related to the impact of the COVID-19 pandemic,
including the recent sharp decline in the global demand for and
resulting global oversupply of crude oil and the resulting steep
decline in oil prices, production quotas imposed by Gabon,
disruptions in global supply chains, quarantines of our workforce
or workforce reductions and other matters related to the pandemic,
well results, wells anticipated to be drilled and placed on
production, future levels of drilling and operational activity and
associated expectations, the implementation of the Company’s
business plans and strategy, prospect evaluations, prospective
resources and reserve growth, its activities in Equatorial Guinea,
expected sources of and potential difficulties in obtaining future
capital funding and future liquidity, its ability to restore
production in non-producing wells, future operating losses, future
changes in crude oil and natural gas prices, future strategic
alternatives, future and pending acquisitions, capital
expenditures, future drilling plans, acquisition and interpretation
of seismic data and costs thereof, negotiations with governments
and third parties, timing of the settlement of Gabon income taxes,
and expectations regarding processing facilities, production, sales
and financial projections. 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 risks include, but are not limited to,
crude oil and natural gas price volatility, the failure of the
transaction to close, the impact of production quotas imposed by
Gabon in response to production cuts agreed to as a member of OPEC,
inflation, general economic conditions, the outbreak of COVID-19,
the Company’s success in discovering, developing and producing
reserves, production and sales differences due to timing of
liftings, decisions by future lenders, the risks associated with
liquidity, lack of availability of goods, services and capital,
environmental risks, drilling risks, foreign regulatory and
operational risks, and regulatory changes.
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.
Inside Information
This announcement contains inside information as
defined in Regulation (EU) No. 596/2014 on market abuse (“MAR”) and
is made in accordance with the Company’s obligations under article
17 of MAR.
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