Page 11 - AfrOil Week 35 2019

AfrOil
NEWS IN BRIEF
AfrOil
UPSTREAM
VAALCO Energy provides operational update
VAALCO Energy has provided an operational update with additional details on the commence- ment of its 2019/2020 drilling programme, the successful completion of its full-field annual maintenance shutdown at Etame and the exten- sion of the lease contract for the oating, pro- duction, storage and o oading vessel (FPSO) Petroleo Nautipa o shore Gabon.
Key Highlights: delivery of the Vantage Drilling International Topaz jackup drilling rig to VAALCO is expected in early Septem- ber; announced plans to drill the Etame 9P appraisal wellbore rst, followed by the Etame 9H development well from the Etame platform; con rmed plans to drill an additional appraisal wellbore and up to two more development well- bores later this year and into the first half of next year; successfully resumed full production following completion of the planned full- eld annual maintenance shutdown o shore Gabon at the Etame eld in August on schedule and on budget; and exercised an election to extend the lease contract for the FPSO to September 2021 with an additional one-year option through Sep- tember 2022.
Cary Bounds, VAALCO Energy’s chief exec- utive o cer, commented: “We are very pleased to have the Vantage Topaz jackup rig mobiliz- ing to the Etame platform to commence our 2019/2020 drilling campaign in mid-September. is represents the commencement of a busy and exciting period of operational activity for VAALCO, the ultimate objectives of which are to enhance cash ow and realize further value
from our reserves and resources. Our current plans are to drill up to three development wells and two appraisal wellbores funded from cash on hand and cash generated from operations. e development wells will all be drilled from our existing platforms where the infrastructure is in place to bring production online quickly. e appraisal wellbores are expected to help further de ne existing leads that may potentially add reservesandde-riskfuturedrillinglocations.”
Bounds continued: “In addition, we have successfully completed our periodic full- eld maintenance shutdown at Etame and most importantly, there were no safety or environ- mental incidents with production restored to pre-shutdown levels. Our relationship with our FPSO provider remains positive, so we extended the FPSO contract for another year through Sep- tember 2021. By maintaining operational excel- lence, we are very pleased to have positioned the company to deliver material organic growth through development drilling and create value for our shareholders.”
Vantage Drilling International has noti ed VAALCO that they expect to release the Topaz jackup rig to VAALCO in early September fol- lowing completion of ENI Gabon’s drilling oper- ations. VAALCO plans to spud the Etame 9P appraisal wellbore rst, followed back-to-back with the Etame 9H development well. e Com- pany plans to drill up to three development wells and two appraisal wellbores in the 2019/2020 drilling programme. VAALCO believes that there is significant reserve upside associated with the two appraisal wellbores as they may con rm up to approximately ve million net barrels of 2P oil reserves spread across six well locations targeted in future drilling campaigns. e company is forecasting that the 2019/2020 drilling program will be funded by cash on hand
and cash generated from operations. e cur- rent estimated net drilling capital expenditures are $20mn to $25mn in 2019 with an additional $5-10mn of expenditures in 2020.
During August 2019, VAALCO completed its planned full eld 2019 maintenance shutdown for the Etame Marin FPSO and four platforms. e entire work scope was completed success- fully, with no adverse environmental or safety incidents. The field was shut-in for approxi- mately nine days during the shutdown and then returned to pre-shutdown production levels.
VAALCO has exercised an election to extend the lease contract for the FPSO Petróleo Nautipa at Etame through September 2021, with an addi- tional one-year option to run through Septem- ber 2022.
VAALCO Energy, August 28 2019
Qatar Petroleum signs
agreements on Namibia
exploration blocks
Qatar Petroleum has entered into agreements with Total for a share of exploration and produc- tion rights in two blocks o shore the Republic of Namibia.
Under the agreements, which are subject to customary regulatory approvals by the govern- ment of Namibia and approvals by the partners in the blocks, Qatar Petroleum will hold a 30% participating interest in Block 2913B, with Total (the operator) holding a 40% participating inter- est. e other partners in the block are Impact Oil (20%), and Namcor (10%). A rst explora- tion well is scheduled to be drilled in the rst half of next year.
Also under the agreements, Qatar Petro- leum will hold a 28.33% participating interest in Block 2912, with Total (the Operator) holding a 37.78% participating interest. e other partners in the block are Impact Oil (18.89%) and Nam- cor (15%).
Commenting on the agreements, Saad Sher- ida Al-Kaabi, the Minister of State for Energy A airs, and president and CEO of Qatar Petro- leum, said: “We are pleased to expand our global exploration activities into Namibia, which fur- ther strengthens our presence in Africa. Work- ing on these prospective frontier blocks with our valuable long-term partner, Total, will give another boost to our e orts towards implement- ing our international growth strategy.”
Blocks 2913B and 2912 sit adjacent to one another o shore Namibia. Block 2913B is 2,600- 3,300 metres deep with an area of about 8,215 square km, while Block 2912 is 3,300-3,800 metres deep with an area of about 7,813 square km.
Qatar Petroleum, August 27 2019
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