VAALCO Energy Inc. provided an update on the South Tchibala 1HB-ST well that was successfully drilled and completed from the Avouma platform in the Etame field, offshore Gabon, as well as additional operational information regarding its activities in Gabon.
George Maxwell, VAALCO’s Chief Executive Officer commented, “The Etame asset is a premier, high-quality field that has produced over 126 million barrels of oil and we believe still has significant upside over the next decade. We are pleased with the results of the South Tchibala 1HB-ST well which will add to production once the long-term stabilized rate is established, and more importantly, adds new reserves to VAALCO’s 1P and 2P positions. The continued success of our 2021/22 drilling campaign, coupled with a strong pricing environment and financial efficiencies of keeping the rig on location has enabled us to extend the current four-well program by an additional two wells.
“The FPSO replacement and full field reconfiguration plans are progressing in-line with our expectations and we look forward to benefitting from the associated cost savings in Q4 2022 and beyond, once those activities have been completed. These activities are expected to save approximately $20-25 million gross per year in operational costs through 2030 resulting in rapid payback and a material impact on production margins and free cash flow going forward.
“We achieved record high quarterly liftings during the second quarter of 2022, which equates to sales volumes of approximately 10,500 BOPD net to VAALCO. Our preliminary estimate of production for the period of 9,200 to 9,300 BOPD was modestly below our expectations primarily due to delays associated with initiating production on our last two development wells on the Avouma platform, which required more complex and time-consuming completions. Nonetheless, we continue to expect to meet our full year 2022 production guidance.”
Etame: The South Tchibala 1HB-ST
The South Tchibala 1HB-ST was successfully completed after performing a frac pack on the Dentale D1 sand, the first operation of this kind in the Etame field. The second sand identified during the drilling, the Dentale D9, was not appraised during this completion, although it also showed hydrocarbon potential.
The well will be brought on slowly to allow the formation to be cleaned up adequately over the next several weeks after which a long-term stabilized flow rate will be established. During the initial period, the well will be flowed at varying rates of fluid per day to ensure that long-term formation and completion damage risk is minimized. VAALCO expects to see a stabilized flow rate in the next five to seven days.