THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION
VAALCO ENERGY ANNOUNCES SUCCESSFUL DRILLING OF NORTH TCHIBALA 2H-ST WELL AND PROVIDES OPERATIONAL UPDATE ON FSO 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;
o 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;
o 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
"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
The Company is an established operator within the region, holding a 63.6% participating interest in the Etame Marin block, located offshore
For Further Information
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+00 1 713 623 0801 |
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+00 1 713 543 3422 |
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Buchanan ( |
+44 (0) 207 466 5000 |
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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
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