Page 12 - AfrOil Week 37 2019

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“Asaresult,thisbasinisgarneringsignificant interest from E&P companies seeking attrac- tive frontier investment opportunities. Angola announced the launch of their first license round in eight years in October. Driven by client inter- est, we are continuing to expand our multi-cli- ent data library over the most appealing acreage around the world, and we now have over 150,000 km [of 2D data collected] offshore Africa.”
ION Geophysical, September 11 2019
Equatorial Guinea’s local
service companies continue
to attract best international
partnerships
As Equatorial Guinea prepares to host the Oil & Gas Meeting Day in Malabo on October 1st and 2nd, 2019, one of the country’s local services company has signed an international partner- ship with a $440m services conglomerate.
Apex Industries, an indigenous service com- pany providing services in the oil & gas indus- try in Equatorial Guinea, has signed a deal with the Duscaff Organisation, a joint international scaffolding supply company headquartered in Dubai.
“Apex is determined to work with the oil sector and build alliances with international companies to add value to Equatorial Guinea’s economy. This partnership allows us to gain the know-how from a reputable industry leader like Duscaff and work with them to create jobs for our people,” said Apex CEO Leoncio Amada Nze.
Under the agreement, Apex Industries will partner with the Duscaff Organisation for the supply of scaffolding products that comply with the best oil and gas industry and global norms and can support several ongoing and future con- struction and industrial projects in Equatorial Guinea and the CEMAC region.
“The Africa Energy Chamber welcomes
such agreements. This is tangible evidence that African services companies can attract the best international agreements, when they position themselves as strong and credible local partners in their market. This contributes to building local capacity and to the growth of the indus- try. We want to see African companies making money and profiting from oil and gas in Africa,” declared NJ Ayuk, executive chair of the African Energy Chamber and CEO of Centurion Law Group.
In order to strengthen co-operation amongst African and international services companies and encourage the development of a strong African content, Malabo will be hosting the Oil & Gas Meeting Day on October 1-2, 2019. The event will offer the opportunities for African ser- vice companies to make such deals with regional and international partners and drive global transformations within the oil services industry. Africa Energy Chamber, September 16 2019
UPSTREAM
VAALCO Energy announces
commencement of drilling
campaign at Etame and
provides operational update
VAALCO Energy today announced that the company has commenced its 2019/2020 drilling campaign and spudded the Etame 9P appraisal wellbore at the Etame field offshore Gabon. Drilling of the Etame 9P appraisal wellbore is expected to take approximately four weeks, after which the company will commence drilling the Etame 9H development well targeting the Gamba reservoir.
The objective of the Etame 9P appraisal well- bore is to test the Dentale reservoirs beneath the Etame field. The company estimates that there could be up to 4.6mn gross barrels of recoverable
oil present in the Dentale reservoirs beneath the Etame field. If these resources are present in the Dentale, the company will need to drill addi- tional wells to exploit these reservoirs.
As previously announced, VAALCO con- tracted the Vantage Drilling International Topaz jack-up drilling rig to execute the 2019/2020 drilling campaign, which will include two appraisal wellbores and up to three development wells.
Cary Bounds, the company’s chief execu- tive officer, commented: “We have entered into the first phase of our growth strategy, starting with the Etame 9P appraisal wellbore, where we are seeking to de-risk significant resources in the Dentale formation with a view to future exploitation opportunities. The resources we are targeting were identified in oil-bearing Dentale reservoirs encountered in wells drilled beneath the Gamba reservoir at the Etame field. The Etame 9P appraisal wellbore represents the first of many opportunities where we are attempting to create substantial value for our shareholders by converting resources to reserves in a cost-ef- fective manner.”
Gabon production and operational update and other matters: Based on actual production volumes thus far in the third quarter of 2019, the company reaffirms its prior production guid- ance and expects third-quarter 2019 production to be in the range of 3,000-3,300 barrels per day (bpd) of oil net, with full-year 2019 production to be in the range of 3,300-3,900 bpd net.
In early September 2019, an electric submers- ible pump (ESP) failed in the Etame 10H well after operating for four and a half years. Prior to the ESP failure, the well was producing approx- imately 200 bpd net to VAALCO. The company is investigating various cost-effective options available to replace the ESP, including utilising the Vantage drilling rig to perform a workover.
VAALCO does not anticipate the loss of production from the Etame 10H well to change third-quarter 2019 or full-year 2019 production guidance. In setting its range for production guidance, the Company considers unforeseen events such as mechanical issues, as well as the timing of and results from the 2019/2020 drilling campaign.
The company also signed definitive agree- ments to finalize the previously announced agreement in principle with the Etame joint ven- ture owners to resolve past audit findings for the periods from 2007 through 2016 for $4.4mn net to VAALCO. The agreement provides for pro- cedures to minimise the chances of future audit claims. As the Company accrued the $4.4mn settlement amount in the 2019 second-quarter financial statement, no further adjustments are expected.
VAALCO Energy, September 13 2019
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Week 37 17•September•2019