VAALCO Energy spikes over 6% after announcing well completion
Earlier on Tuesday, VAALCO Energy provided an update on its 2019/2020 drilling program Offshore Gabon. Highlights include: Successfully completed Etame 9H development well including approximately 1,000 feet of horizontal section in Gamba reservoir; Brought onto production at a stabilized flow rate of 5,500 gross barrels of oil per day, BOPD, 1,500 net BOPD to VAALCO, with no H2S; Due to high reservoir quality, production is higher than the pre-drill estimate of 2,500 to 3,500 BOPD gross, 675 to 960 net to VAALCO; Increased its forecasted 2019 net exit production rate to 4,500 to 4,700 BOPD, up 16% from its prior estimate of 3,800 to 4,100 BOPD; Expects recategorization of 6.2M barrels of undeveloped 2P oil reserves to developed 2P oil reserves; Commenced drilling of the Etame 11H horizontal development well with production expected online in late January; Continued planning underway for workover activity on Etame 10H and drilling of SE Etame 4P appraisal wellbore. Cary Bounds, Chief Executive Officer, commented, "We are very excited with the continued success that we have had in the 2019/2020 drilling program thus far as we demonstrate the development potential from the Etame field. The very strong stabilized net rate of 1,500 BOPD from the Etame 9H well is a significant first step toward increasing overall production by approximately 25% in 2020 compared to 2019. With the Etame 9H well online, we expect our 2019 net exit production rate to average 4,500 to 4,700 BOPD, 16% higher than our previous estimate of 3,800 to 4,100 BOPD net to VAALCO. Shares of VAALCO Energy are up 6.3% or 11c to $1.85 per share in afternoon trading on Tuesday.