HOUSTON, Feb. 27, 2014 /PRNewswire/ -- VAALCO Energy, Inc.
(NYSE: EGY) today provided the following update on recent
activities.
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The exploration well in the Dimba prospect, located
approximately seven miles northeast of the Etame field offshore
Gabon, has been drilled to a total
depth of 3,040 meters. Electric log data indicates that the
estimated recoverable reserves are uneconomic at this
location. The well is currently in the process of being
plugged and abandoned.
The primary Gamba sandstone objective was encountered high on
the structure but was thinner and tighter than expected in the
initial well penetration. The secondary deeper objectives in
the Melania and Lucina sections were encountered on structure but
lacked reservoir quality sands and were not tested.
Strong oil shows observed in the sidewall cores at the Gamba
interval led to a subsequent sidetrack on the flank of the
structure. The sidetrack encountered thicker Gamba reservoir
of improved quality but VAALCO and its partners deemed the
reservoir to be too small to be economic.
VAALCO has now scheduled the previously announced six-day
shutdown of the Etame Marin block to commence on or around
March 15, 2014. The shutdown
has been scheduled to upgrade the safety systems and perform
maintenance and repairs to key mechanical systems including the gas
lift compressor and boiler unit on VAALCO's leased Floating,
Production, Storage and Offloading (FPSO) vessel. Other
maintenance will be performed in the field while the FPSO is down.
A second FPSO shutdown is planned during the second half of 2014 to
upgrade the fire and gas detection systems.
Construction work on the two new production platforms targeting
additional development of the Etame Marin block is continuing on
schedule, with one platform to be installed in the Etame field and
the second platform to be installed between the Southeast Etame and
North Tchibala fields. Both platforms are expected to be set
in the second half of 2014.
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. Forward-looking statements are those concerning
VAALCO's plans, expectations, and objectives for future drilling,
completion and other operations and activities. All
statements included in this document that address activities,
events or developments that VAALCO expects, believes or anticipates
will or may occur in the future are forward-looking
statements. These statements include expected capital
expenditures, future drilling plans, prospect evaluations,
objectives and operations, and reserve growth. These
statements are based on assumptions made by VAALCO based on its
experience perception of historical trends, current conditions,
expected future developments and other factors it believes are
appropriate in the circumstances. Such statements are subject
to a number of assumptions, risks and uncertainties, many of which
are beyond VAALCO's control. These risks include, but are not
limited to, inflation, general economic conditions, oil and gas
price volatility, the Company's success in discovering, developing
and producing reserves, lack of availability of goods,
services and capital, environmental risks, drilling risks, foreign
operational risks, and regulatory changes. These and other
risks are further described in VAALCO's annual report on Form 10-K
for the year ended December 31, 2012,
its Form 10-Q for the third quarter filed on November 7, 2013, and other reports filed with
the SEC which can be reviewed at http://www.sec.gov, or which can
be received by contacting VAALCO at 4600 Post Oak Place, Suite 300,
Houston, Texas 77027, (713)
623-0801. 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.
About VAALCO
VAALCO Energy, Inc. is a Houston based independent energy company
principally engaged in the acquisition, exploration, development
and production of crude oil. VAALCO's strategy is to increase
reserves and production through the exploration and exploitation of
oil and natural gas properties with high emphasis on international
opportunities. The company's properties and exploration
acreage are located primarily in Gabon, Angola
and Equatorial Guinea in
West Africa.
SOURCE VAALCO Energy, Inc.