Page 11 - AfrOil Week 48 2019

AfrOil
NEWS IN BRIEF
AfrOil
UPSTREAM
VAALCO’s Etame 9H
development well has been
successfully completed
VAALCO Energy has provided an update on its 2019/2020 drilling programme Offshore Gabon. Cary Bounds, Chief Executive Officer, com- mented: “We are very excited with the contin- ued success that we have had in the 2019/2020 drilling programme thus far, as we demonstrate the development potential from the Etame field. The very strong stabilised net rate of 1,500 bpd from the Etame 9H well is a significant first step toward increasing overall production by approx- imately 25% in 2020 compared to 2019. With the Etame 9H well online, we expect our 2019 net exit production rate to average 4,500-4,700 bpd, 16% higher than our previous estimate of 3,800-
4,100 bpd net to VAALCO.
“We are in the midst of drilling the Etame
11H development well, which will likely be fol- lowed by a workover on the Etame 10H well to replace the ESP. The Etame 10H workover, if undertaken, could restore additional production of 735 gross bpd, or 200 bpd net to VAALCO. We then plan to move the rig to the SEENT platform to drill the SE Etame 4P appraisal well, which could confirm additional development well loca- tions in the Gamba reservoir.
“We are executing on our strategic plan, building positive momentum into 2020 and remain focused on maintaining our record of operational success.”
VAALCO reached total depth of approx- imately 8,900 feet (2,710 metres) in the Etame 9H development well and drilled and completed approximately 1,000 feet (300 metres) of the horizontal section within the Gamba reservoir. The horizontal section is at the top of the Gamba structure, where the high-quality reservoir is approximately 45 feet (13.72 metres) thick. After installing production equipment, the well was brought online at a stabilised rate of 5,500 bpd gross (1,500 bpd net to VAALCO) with no H2S, which compares to the previously disclosed pre- drill expected stabilised initial production rate of 2,500-3,500 gross bpd (675-960 bpd net to VAALCO).Byyear-end2019,VAALCOexpects to convert approximately 6.2mn barrels of gross undeveloped 2P oil reserves to developed 2P oil reserves. The Etame 9H development well was drilled and completed as planned, with no safety or environmental incidents.
Shortly after completion of the Etame 9H development well, the Company began drilling the Etame 11H horizontal development well from the Etame platform, targeting the same Gamba reservoir at a different location in the
Etame field. If successful, the Etame 11H well is expected to result in additional production of 2,500-3,500 gross bpd (675-960 bpd net to VAALCO) coming online in late January 2020.
After completing the Etame 11H well, VAALCO plans to execute a workover to replace the electric submersible pump (ESP) in the Etame 10H well on the same platform. The com- pany then plans to move the rig to the Southeast Etame/North Tchibala platform to drill the SE Etame 4P appraisal wellbore to evaluate a Gamba step-out area in Southeast Etame. Upon drill- ing this second appraisal wellbore, the drilling commitment as part of the PSC extension that VAALCO signed last year will be complete. As discussed in the past, if the SE Etame 4P appraisal wellbore indicates the presence of hydrocarbons in the Gamba reservoir then VAALCO, subject to approvals from joint interest owners and governmental authorities, plans to drill a third development well as part of the 2019/2020 drill- ing campaign.
VAALCO Energy, December 03 2019
Bowleven announces preliminary results and updateonoperationsin Cameroon
Bowleven, the Africa-focused oil and gas explo- ration group traded on AIM, today announces its preliminary results for the year ended June 30, 2019, and has provided an update on its opera- tions in Cameroon.
Etinde, offshore Cameroon: Ongoing
operator evaluation of development options, with particular focus on the facilities necessary to undertake all aspects of the development. Extensive pre-Front End Engineering and Design (FEED) studies performed by several external engineering consultancies and equip- ment providers.
Investment in completing the analysis of the data and samples collected for the two 2018 appraisal wells, which was followed up by a large scale exercise to remap and reassess each of the fields currently discovered in the Etinde licence area. Particular focus has been placed on re-evaluating the IE field, which has resulted in a much clearer understanding of the importance of existing discoveries and the prospectivity of the nearby undrilled prospects.
The JV partners have undertaken an inde- pendent Competent Persons report on the contingent resources of the Etinde licence area. The final report shows that the overall ‘in place’ contingent resources of the Etinde licence area are largely unchanged from Bowleven’s 2015 assessment. Recovery rates have been reassessed in light of current development options reducing the overall 2C contingent resources available for production to 244mn boe from 290mn boe on a 100%basis.
Bomono, onshore Cameroon: The licence terminated in December 2018. However, the company currently await the Government’s for- mal notification of the licence removal.
Financial: The financial valuation of the Etinde asset has been assessed during the lat- ter part of the year based on development plans proposed by the operator and the revised assessment of the project’s contingent resources. We have paid close attention to the risks and
Week 48 04•December•2019
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