Vaalco misses target offshore Gabon

VAALCO Energy, Inc. today said that 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 start 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.