VAALCO Provides Operational Update
July 20 2017 - 4:45PM
VAALCO Energy, Inc. (NYSE:EGY) today provided an operational update
regarding its production operations offshore Gabon.
On July 18, the electrical submersible pump
(ESP) in the South Tchibala 2-H well failed, resulting in the well
being temporarily shut-in. The well was producing
approximately 1,300 barrels of oil per day gross, or 390 net to the
Company, prior to being shut-in. VAALCO is working to
mobilize a hydraulic workover unit to move onto the Avouma platform
and replace the ESP system in the well, which is expected to be
back on production by fourth quarter 2017. The Company successfully
utilized a hydraulic unit to replace the ESP in the well late last
year at a significantly lower cost rather than mobilizing a jackup
rig. As a result of recent diagnostic work, the Company
believes it has determined the cause of the ESP failures in 2016,
in this well, and a newly designed pair of ESPs will be installed
in the South Tchibala 2-H well during the upcoming workover
operation.
VAALCO also recently completed its planned 2017
maintenance turnaround for the Etame Marin FPSO and four
platforms. The entire work scope was successfully completed
with no environmental or safety issues. The field was shut-in
during the turnaround and is now back on production. The results of
the maintenance and inspection work confirmed the Company’s asset
integrity programs continue to be effective. The next
turnaround will be in 2018.
The Company does not plan to change its annual
production guidance at this time as a result of the shut-ins due to
the ESP failure or the annual maintenance turnaround.
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.
Forward Looking Statements
This news release 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
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 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, 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
regulatory and 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, 2016, 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.
Investor Contact
Phil Patman 713-623-0801
Vaalco Energy (NYSE:EGY)
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