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VAALCO Energy boosted by expectation beating Etame 9H well offshore Gabon

The recent addition to London's oil sector upgraded its forecast 'exit' rate for 2019 as a result of the better-than-expected new production well.

VAALCO Energy Inc - VAALCO Energy boosted by expectation beating Etame 9H well offshore Gabon

VAALCO Energy Inc (NYSE:EGY; LON:EGY), which floated in London back in September, has announced success at the new Etame 9H development well offshore Gabon.

The horizontal Etame 9H well opened up some 1,000 feet of the Gamba reservoir and it came online with a stabilised flow rate of 5,500 barrels of oil per day (bopd), gross, which gives VAALCO around 1,500 bopd net.

This rate significantly exceeds pre-drill estimates for 2,500 to 3,500 bopd. The outperformance was the result of better than expected reservoir quality, VAALCO noted.

READ: VAALCO  makes discovery within a month of London of IPO

VAALCO now forecasts an ‘exit’ production rate of 4,500 to 4,700 bopd for 2019, representing a 16% upgrade from its prior estimate of 3,800-4,100 bopd.

It has now moved on quickly to start the drilling of the Etame 11H development, which is scheduled to deliver further production growth when it comes online in January. Meanwhile, separate work is underway to plan well work over programmes on the existing Etame 10H and SE Etame P wells.

"We are very excited with the continued success that we have had in the 2019/2020 drilling program thus far as we demonstrate the development potential from the Etame field,” said chief executive Cary Bounds.

“The very strong stabilized net rate of 1,500 BOPD from the Etame 9H well is a significant first step toward increasing overall production by approximately 25% in 2020 compared to 2019.”

Bounds added: “We are executing on our strategic plan, building positive momentum into 2020 and remain focused on maintaining our record of operational success."

Quick facts: VAALCO Energy Inc

Price: 1.18 USD

NYSE:EGY
Market: NYSE
Market Cap: $67.8 m
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