Page 13 - AfrOil Week 13 2020

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NEWS IN BRIEF
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UPSTREAM
VAALCO Energy announces
completion of drilling
programme offshore Gabon
VAALCOEnergyhasprovidedanupdateonthe successful completion of its 2019/2020 drilling programme in the Etame Marin Block, located offshore Gabon, as well as an operational update.
Highlights include: successfully completed the South East Etame 4H development well including approximately 750 feet of horizontal section in the Gamba reservoir; brought the South East Etame 4H well onto production on March 21, 2020 at an initial flow rate of approx- imately 2,200 gross barrels of oil per day (bpd), 600 bpd net revenue interest (NRI) to VAALCO; commenced workover of the South East Etame 2H well to replace the electric submersible pumps (ESPs) and expects to restore production around the end of March; and to date, operations have not been materially disrupted by current worldwide COVID-19 crisis.
Cary Bounds, Chief Executive Officer, com- mented: “We are proud of the highly successful 2019/2020 drilling campaign, in which we have drilled and brought online three development wells and drilled two successful appraisal well- bores that confirmed additional resources to exploit from this quality asset. The drilling cam- paign has been transformational for VAALCO and has added meaningful production and cash flow with minimal increase in operating costs. This has helped to improve our margins and drive our operational breakeven down to $31 per barrel of realised pricing.
“Following the completion of the South East Etame 4H well, we began the planned workover on the South East Etame 2H well to replace ESPs. We expect to bring the South East Etame 2H well back online around the end of March, which should restore production of approximately 2,400 gross BPD.
“Our lowered operational breakeven, strong hedge position and increased production has enabled us to establish a solid financial footing, which puts us in a stronger position to navigate the current low price oil environment. With that said, the global pandemic and energy industry events that began in late February of 2020 have been unprecedented and caused significant uncertainty across the oil sector with regards to outlook and budgets. The world is battling COVID-19, which has disrupted our everyday lives and negatively impacted the worldwide economy. As of right now, VAALCO’s oper- ations have not been disrupted, and we have managed through the logistical challenges that we have faced since the outbreak. VAALCO has
contingency plans in place in the event that we are directly impacted, and we continue to put the safety of our workers and local stakeholders first. We remain committed to generating long-term value for our shareholders by focusing on cap- ital efficiency, controlling costs and optimising production.”
With the drilling of the South East Etame 4H well, VAALCO has completed its 2019/2020 drilling campaign. As previously announced, with the drilling of the South East Etame 4P appraisal wellbore, VAALCO has also satisfied the drilling commitment as part of the PSC extension that VAALCO signed in late 2018.
After installing production equipment, the South East Etame 4H well was brought online at an initial rate of approximately 2,200 gross bpd, (600 bpd NRI to VAALCO), with no hydrogen sulphide, which is at the high end of the February 2020 pre-drill initial production rate of 1,200- 2,500grossbpd(325-675bpdNRItoVAALCO). The well was drilled and completed as planned, with no safety or environmental incidents. VAALCO Energy, March 26 2020
FAR suspends drilling plans offshore Gambia
As operator of the A2 and A5 blocks offshore Gambia, FAR has been making preparations to drill an exploration well in the second half of this year. These plans now need to be adjusted as a result of the COVID-19 pandemic.
To remove the risk to FAR personnel and contractors and in recognition that interna- tional supply of services is currently uncertain, FAR will be temporarily suspending the drilling plans. The project is currently at an early stage and at a good hold-point for reactivation at some time in the future. Other work in the block will be optimised to suit the business requirements and all licence obligations will continue. This program adjustment will be done in consultation
with our partner Petronas and the Government of The Gambia.
FAR and its partners will continue to assess the situation on the ground with a view to reac- tivating the drilling project when it is safe and sensible to do so. Under the licence, the well is not obliged to be drilled until Q3-2021.
FAR Ltd, March 25 2020
Africa Energy to participate in multi-well exploration campaign offshore South Africa in 2020
Announcing its financial and operating results for the year ended December 31, 2019, Africa Energy announced details of its multi-well 2020 exploration campaign offshore South Africa.
Garrett Soden, the Company’s President and CEO, commented: “Despite the current market volatility triggered by the coronavirus pandemic, 2019 was a transformational year for Africa Energy with the Brulpadda discovery on Block 11B/12B offshore South Africa. After the discovery, the Block 11B/12B joint venture part- ners initiated two phases of 3D seismic over the Paddavissie Fairway and an extended 2D seismic survey across the remainder of the block, the results of which are very encouraging. The mul- ti-well 2020 exploration campaign is expected to kick-off with the Luiperd well in June and will target several de-risked submarine fan prospects with substantial prospective resources.
“As the global coronavirus situation is fluid, we will update investors if there are material changes to the drilling schedule. With the recent collapse in oil prices, we will continue to focus on cost control. However, we are well-positioned to weather the current environment given our lean overhead, our recent equity financing and the farmout of Block 2B.”
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