Vaalco Energy has completed a new well in the Etame field. Initial flow rates of 3,100 barrels per day of oil gross exceeding internal expectations.
The Avouma 3H-ST, drilled from the Avouma platform, targeted Gamba formations that had not previously been produced.
Vaalco CEO George Maxwell described the results as “highly successful” for Etame. “We have now brought online two successful development wells in 2022 with very strong initial flow rates at an opportune time, with sustained higher Brent pricing.”
Of the total, 1,823 bpd is attributable to Vaalco’s working interest.
The company has begun drilling the third well in the programme, the ETBSM 1HB-ST, also from the Avouma platform. This is also targeting the Gamba reservoir, in addition to testing the deeper Dentale formation at South Tchibala.
Work has not yet delineated this in the area, Maxwell said.
Higher revenues, from high pricing and increased production, “is allowing us to grow our cash position and fund all of our 2022 capital expenditures with cash on hand and cash from operations. We continue to execute on our strategy and deliver strong operational results allowing us to continue to return cash to shareholders through our dividend and increase overall value of our assets.”
Vaalco began drilling the first well, the Etame 8H-ST, in December. It came online in February with production of around 5,000 bpd gross. The company choked this back to 4,200 bpd for reservoir management purposes.
The company plans to drill four wells under this campaign. It has estimated the total cost to be $117-143 million, of which $74-91mn would be net to Vaalco’s 63.6%.