VAALCO Energy, Inc. Confirms Oil Discovery With Etame 9P Appraisal Wellbore
October 17 2019 - 4:45PM
VAALCO Energy, Inc. (NYSE: EGY, LSE: EGY) (“VAALCO” or the
“Company”), today announced that the Etame 9P appraisal wellbore,
targeting the subcropping Dentale reservoir beneath the
VAALCO-operated Etame field offshore Gabon, was successfully
drilled to a total depth of 10,260 feet and encountered both Gamba
and Dentale oil sands. Operations are underway to plug back
to a shallower depth and drill the Etame 9H horizontal development
well section in the Gamba reservior.
Key highlights:
- Verifies the presence of a Dentale oil column first identified
in the Etame 4V well drilled in 2001
- Encountered approximately 35 feet of good-quality Dentale oil
sands with 27% porosity and 3,000 mD of permeability
- VAALCO estimates gross recoverable oil resources of 2.5 to 10.5
million barrels of oil present in subcropping Dentale
reservoirs
- Identified an oil column which was thicker than expected in the
Gamba reservoir which may result in higher ultimate oil recovery
from the planned Etame 9H and Etame 11H wells than previously
expected
- VAALCO did not encounter H2S in either the Gamba or Dentale
reservoirs
- Operations are underway to retrieve drill pipe and tools that
became lodged in the wellbore after reaching total depth which will
delay completion of the Etame 9H into December.
Cary Bounds, Chief Executive Officer, commented,
“We are excited that our first appraisal wellbore in the 2019/2020
drilling campaign has confirmed our estimates of meaningful
recoverable resources in the subcropping Dentale, which we
currently have classified as prospective. The successful
Etame 9P is the first of many appraisal opportunities that we have
identified that have the potential to create substantial organic
value for our shareholders. The result reaffirms the upside
potential yet to be exploited from the Etame field.
We continue to assess the viability of drilling
future Dentale development wells as we aim to extend the overall
life of the field by continuing to add reserves and production. We
are now focused on drilling the Etame 9H development well which, if
successful, could result in additional production volumes coming
online in December.
VAALCO remains focused on delivering value
through operational execution, and we are hopeful that this is just
the first of many positive steps toward our goal of organic
production and reserve growth.”
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 31.1% working interest in the Etame Marin
Block, located offshore Gabon, which to date has produced over 110
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 |
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Al Petrie Advisors (US
Investor Relations) |
+00 1 713 543 3422 |
Al Petrie / Chris Delange |
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Buchanan (UK Financial
PR) |
+44 (0) 207 466 5000 |
Ben Romney / Chris
Judd / James Husband |
VAALCO@buchanan.uk.com |
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Forward Looking Statements |
This press 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. All statements, other than statements of
historical facts, included in this press release 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.
Forward-looking statements include all statements regarding
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, as well as statements
including the words "believe," "expect," "plans" and words of
similar meaning. 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. Actual future
results, including project plans and schedules and resource
recoveries could differ materially due to changes in market
conditions affecting the oil and gas industry or long-term oil and
gas price levels, political or regulatory developments, reservoir
performance, the outcome of future exploration and development
efforts, technical or operating factors, inflation, general
economic conditions, 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.
These and other risks are further described in
VAALCO's annual reports on Form 10-K and quarterly reports on Form
10-Q and other reports filed with the U.S. Securities and Exchange
Commission (“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. 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.
References to thickness of oil pay or of a
formation where evidence of hydrocarbons have been encountered is
not necessarily an indicator that hydrocarbons will be recoverable
in commercial quantities or in any estimated volume. Well test
results should be considered as preliminary and not necessarily
indicative of long-term performance or of ultimate recovery. Well
log interpretations indicating oil accumulations are not
necessarily indicative of future production or ultimate
recovery.
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.
Supplemental Reserves
Disclosure
This press release contains oil and gas metrics
which do not have standardized meanings or standard methods of
calculation as classified by the SEC and therefore such measures
may not be comparable to similar measures used by other companies.
Such metrics have been included herein to provide readers with
additional measures to evaluate the Company’s performance; however,
such measures are not reliable indicators of the future performance
of the Company and future performance may not compare to the
performance in previous periods.
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