VAALCO Announces Operational Update Including Successfully Restoring Production at Etame 10H and Etame 4H Wells

HOUSTON, Jan. 21, 2020 (GLOBE NEWSWIRE) -- VAALCO Energy, Inc. (NYSE: EGY; LSE: EGY) (VAALCO or the Company) today provided an operational update on its 2019/2020 drilling program offshore Gabon.  

Highlights

• Successfully completed a planned workover on the Etame platform for the Etame 10H well and restored 600 gross barrels of oil per day (BOPD), 160 net⁽¹⁾ BOPD to VAALCO;
• Reported stabilized production rates of 1,000 gross BOPD, 270 net BOPD to VAALCO from the Etame 4H well brought online in December 2019;
• Mobilized the drilling rig to the Southeast Etame North Tchibala (SEENT) platform and commenced drilling the Southeast Etame 4P appraisal wellbore which will evaluate a previously undrilled Gamba formation step out area;
• Pending positive results from the appraisal wellbore, VAALCO plans to promptly drill a third development well, the Southeast Etame 4H well, to develop the Gamba step out area;
• Continued planning for additional workovers to proactively replace electric submersible pumps (ESPs) that are approaching the end of their expected life; and
• Increased total Company net production to just over 6,000 BOPD, representing a 73% increase over the 2019 full year average of 3,476 net BOPD.
  
  ⁽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 continue to see outstanding results from our 2019/2020 drilling campaign.  Our recent workover has restored production from a previously shut-in well at the Etame platform and we are now entering the next phase which is at the SEENT platform. Our 2019/2020 program has significantly increased production and we are excited about drilling our next appraisal wellbore, the Southeast Etame 4P wellbore.  If successful, we plan to immediately drill a development well that can add new production and reserves.  In addition, a successful appraisal wellbore can also provide us with supplementary development opportunities for future drilling campaigns. Upon drilling of the Southeast Etame 4P wellbore, VAALCO will have satisfied the drilling requirements associated with the PSC extension that we finalized in 2018 with the government of Gabon.