14th Apr 2020 16:44
(Alliance News) - Vaalco Energy Inc said Tuesday it has completed a planned workover on the South East Etame 2H well offshore Gabon, leading to an increase in oil production for the first quarter of 2020.
The workover operations restored 2,400 gross barrels of oil per day, in line with the production level prior to when the electronic submersible pump failed in early March.
As a result of the workover, Vaalco has released the Vantage Drilling International Topaz jackup drilling rig on Thursday last week.
For the quarter to the end of March, production was 4,944 bopd at a net revenue interest, which is at the high end of first quarter guidance at between 4,700 to 5,000 barrels per day.
Looking ahead, Vaalco has reaffirmed its full year production guidance at 4,400 to 5,000 bopd NRI.
"In addition, our strong production has helped to lower our operational breakeven cost of approximately USD31.00 per barrel and, coupled with our current hedge portfolio, positions us well to navigate through the uncertain macro environment we face today. Thus far, Vaalco's operations have not been disrupted by the global Covid-19 pandemic, and we have managed through the logistical challenges that we have faced since the outbreak," said Chief Executive Officer Cary Bounds.
Shares in Vaalco Energy were untraded on Tuesday in London, last quoted at 75.00 pence.
By Dayo Laniyan; [email protected]
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