18th Oct 2019 10:06
(Alliance News) - Vaalco Energy Inc on Friday said it has made a new oil discovery at the Etame field offshore Gabon.
Houston, a US-based energy company which joined London Stock Exchange in September, said Etame 9P appraisal well was successfully drilled to a total depth of 10,260 feet and encountered both Gamba and Dentale oil sands.
Vaalco Energy shares were untraded at 162.50 pence each in London on Friday morning. In New York, shares closed down 1% at USD1.99 on Thursday.
The Etame 9P well verified the presence of a Dentale oil column first identified in the Etame 4V well drilled in 2001, Vaalco Energy said, and encountered 35 feet of good-quality Dentale oil sands. The company estimates gross recoverable oil resources of 2.5 million to 10.5 million barrels of oil present in Dentale reservoirs.
Vaalco Energy Chief Executive Cary Bounds said: "The successful Etame 9P is the first of many appraisal opportunities that we have identified that have the potential to create substantial organic value for our shareholders. The result reaffirms the upside potential yet to be exploited from the Etame field."
"We continue to assess the viability of drilling future Dentale development wells as we aim to extend the overall life of the field by continuing to add reserves and production. We are now focused on drilling the Etame 9H development well which, if successful, could result in additional production volumes coming online in December," Bounds added.
Vaalco Energy owns a 31% working interest in the Etame Marin Block, located offshore Gabon, which to date has produced over 110 million barrels of crude oil. The company also serves as the operator of the block.
By Tapan Panchal; [email protected]
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