HOUSTON, Nov. 4, 2014 /PRNewswire/ -- VAALCO Energy,
Inc. (NYSE: EGY) today announced that Well 2-H in the Ebouri field,
offshore Gabon, has been
temporarily shut-in to determine the cause of pressure
communication between the tubing and casing annuli. At the
time of shut-in, Well 2-H was producing approximately 2,500 gross
barrels of oil per day, 700 net to VAALCO.
The well was initially shut-in in early October 2014 due to the pressure communication
issue. Attempts to resolve the problem through initial
diagnostic work and corrective measures were unsuccessful.
Further diagnostic work is being planned including the use of
a wireline unit to determine both the cause of the pressure
communication and the resolution. The wireline unit is
expected to commence operations during late-November, and once
completed, the Company then expects to provide an update on this
well.
VAALCO noted that the other two development wells in the Ebouri
field, Wells 3H and 4H, were shut-in in July
2012 due to the discovery of hydrogen sulfide
(H2S) in the oil produced from those wells. The
Company and its partners are continuing to make progress on the
plans for returning those wells to production in the first half of
2017 with the expected installation of a crude sweetening facility
to remove the H2S. At the time Well 2-H was shut
in, it continued to produce oil with very low levels of
H2S.
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,
negotiations with governments and third parties, acquisition
opportunities and reserve growth. These statements are based
on assumptions made by VAALCO based on its 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, 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.