Vaalco Energy has signed a contract with Borr Drilling for a jack-up for work on the Etame Marin block.
Borr Jack Up XIV, a unit of Borr, will drill two development wells and two appraisal wellbores for Vaalco. There are also options for additional wells.
The rig should be on location offshore Gabon in December this year. Exact timing is dependent on the rig’s other commitments.
“We continue to work with our joint owners at Etame on our shared goal of executing another successful drilling campaign that can significantly add production and reserves,” said CEO George Maxwell.
“Success on all four wells contained within the drilling campaign could result in an increase in production of 7,000 to 8,000 gross barrels of oil per day and significant reserve additions of up to 10.2 million barrels of oil for the two appraisal wellbores that would be converted from resources into 2P reserves at year-end 2022. We are excited to get our next drilling campaign underway later this year.”
Vaalco’s cash flow and cash on hand will cover spending over the next 12 months, Maxwell continued.
The company is also working on various plans to cut costs and increase netbacks. This includes a plan to change the nature of the installation at Etame.
“We remain firmly focused on maximizing shareholder returns while we continue to progress our refreshed strategic objectives to deliver accretive growth,” the CEO said.
Speaking to Energy Voice in May, Maxwell said the four wells would cost $73-79 million.
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