VAALCO Energy Announces Successful Drilling of North Tchibala 2H-ST Well and Provides Operational Update on FSO and Field Reconfiguration at Etame
September 27 2022 - 2:00AM
VAALCO Energy Inc. (NYSE: EGY; LSE: EGY) ("
VAALCO"
or the "
Company")
today
announced the successful drilling of the North Tchibala 2H-ST well
that was drilled from the Southeast Etame North Tchibala (“SEENT”)
platform in the Etame field, offshore Gabon. Additionally, the
Company provided an operational update on the Teli Floating Storage
and Offloading vessel (“FSO”) installation and field
reconfiguration at Etame.
Drilling and Completion
Highlights
- Successfully drilled and cemented
9-5/8-inch casing string with multiple potentially productive sands
in the Dentale 18/19 pay zones behind casing;
- Encountered nearly 100 meters of
gross Dentale pay sands (72 meters net), exceeding expectations;
- The Dentale 18/19 sands initially
targeted for production in this well are analogous to Dentale sands
previously productive in the North Tchibala field, with similar
porosity and permeability;
- Additional Dentale sands were
encountered in the wellbore that can be targeted for testing and
production in the future;
- Preparing to complete the North
Tchibala 2H-ST well utilizing a fracture stimulation vessel that
will provide support with multiple stimulation and frac-pack
operations;
- Following clean up and
stabilization of flow rate, VAALCO expects a stable flow rate by
the end of October.
FSO and Field Reconfiguration
Highlights
- Permanently moored the Teli FSO in
position and final connections of the production risers that will
deliver oil to the Teli from the Etame Platform are in
progress;
- Disconnected and rerouted all
except two production lines to the Petroleo Nautipa Floating
Production, Storage and Offloading unit (“FPSO”) preparing for
decommissioning, demobilization and retirement of service of the
FPSO as planned;
- Installed over 90% of the approximately 5,100 meters of new
subsea, flexible pipe for the reconfiguration of the Etame
field;
- Installed all new structural deck
extensions at the Etame platform and installed all equipment
packages required for first oil, allowing the Etame platform to
serve as the central processing hub for the Etame field once
reconfiguration is complete;
- Expect completion of all FSO and
first oil field reconfiguration activities in the first week of
October 2022.
George Maxwell, VAALCO’s Chief Executive
Officer, commented, "With the successful drilling of the North
Tchibala 2H-ST well that encountered multiple Dentale sands in the
wellbore, we are proceeding with completion and fracing in the
Dentale 18/19 interval. We expect to have a stabilized flow rate by
the end of October, and we are very encouraged with the nearly 100
meters of gross pay sands we encountered during drilling, which
exceeded our internal expectations. Once on production, we expect
to add new reserves from the 2H-ST well, some of which were not
previously in our 2P reserve base. The positive results from this
well gives us increasing confidence in targeting the Dentale sand
for production at Etame in addition to the Gamba - thereby further
increasing the production runway from this high-quality field.”
“Additionally, the FSO hookup and Etame full
field reconfiguration are proceeding as planned and we currently
expect to have the project completed in October. The new FSO
provides us with additional flexibility and has an effective
capacity for storage that is 50% larger than our current FPSO. It
also reduces our expected storage and offloading costs by 50% which
should lead to an extension of the economic field life, resulting
in a corresponding increase in recovery and reserves at Etame. We
continue to execute on our strategy and remain focused on
generating meaningful free cash flow to enhance shareholder
value.”
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 63.6% participating interest in the Etame
Marin block, located offshore Gabon, which to date has produced
over 126 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 / Jon Krinks |
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, our ability to find a
replacement for the FPSO or to renew the FPSO charter, 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
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 which is
part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 (“MAR”) and is made in accordance with the
Company’s obligations under article 17 of MAR. The person
responsible for arranging the release of this announcement on
behalf of VAALCO is Michael Silver, Corporate Secretary of
VAALCO.
Vaalco Energy (NYSE:EGY)
Historical Stock Chart
From Aug 2024 to Sep 2024
Vaalco Energy (NYSE:EGY)
Historical Stock Chart
From Sep 2023 to Sep 2024