VAALCO Announces Etame 11h Development Well Has Been Successfully Completed and Placed on Production at Higher Than Anticipated Rate

Initial Flow Rate From Etame 11h Lifts Current Total Company Net Production to 5,900 BOPD

HOUSTON, Jan. 08, 2020 (GLOBE NEWSWIRE) -- VAALCO Energy, Inc. (NYSE: EGY; LSE: EGY) (VAALCO or the Company) today provided an update on its 2019/2020 drilling program offshore Gabon and reported 2019 production volumes.

Highlights

• Successfully completed the Etame 11H development well including approximately 860 feet of horizontal section in the Gamba reservoir;
• Brought the Etame 11H well onto production in early January 2020 at a higher-than-expected stabilized initial flow rate of approximately 5,200 gross barrels of oil per day (BOPD), 1,400 net⁽¹⁾ BOPD to VAALCO, with no H₂S;
• Increased VAALCO’s current total Company net production to approximately 5,900 BOPD which includes production from the Etame 11H well;
• Commenced workover of the previously shut-in Etame 10H well to restore production; and
• Continued planning for drilling the SE Etame 4P appraisal wellbore following completion of the Etame 10H workover.
  
  (1) As has been disclosed in the past, all “net” production rates and volumes are VAALCO’s 31% working interest less 13% royalty payment.

Cary Bounds, Chief Executive Officer, commented, “We are very pleased with the successful results of the second development well in our 2019/2020 drilling campaign that was drilled and completed on schedule and within budget. The high-quality reservoir we encountered in both the Etame 9H and Etame 11H wells has yielded two significant new producing wells and validated our strategy to undertake this program.

We have increased our total Company net production to approximately 5,900 BOPD which is up 70% from our 2019 full year net average production of 3,476 BOPD as a result of the Etame 9H and Etame 11H wells in addition to restoring production from the previously shut-in Etame 4H well.

We have since commenced the workover on the Etame 10H well, which if successful, could restore additional production of approximately 200 BOPD net to VAALCO. We then plan to move the rig to the SEENT platform to drill the SE Etame 4P appraisal wellbore, which could confirm additional development well locations in the Gamba reservoir.

Our 2019/2020 drilling program is certainly delivering on its objectives through the enhancement of production and we continue to be encouraged by the recent strengthening of oil prices which bodes well for us given our predominantly fixed cost base at Etame. As a result, we are optimistic about our outlook for 2020 and remain focused on executing on our strategic plan and delivering continued positive operational results.”