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(Alliance News) - Vaalco Energy Inc on Wednesday said the South East Etame 4P appraisal wellbore, offshore Gabon, encountered oil sands in the Gamba formation.
The stock was 1.5% higher in London in afternoon trade at 167.00 pence a share.
The Houston, Texas-headquartered hydrocarbon exploration company said the South East Etame 4P appraisal wellbore was drilled to a total depth of 6,311 feet and encountered about 20 feet of good-quality Gamba oil sands.
Vaalco said it currently estimates gross prospective resources of one to two million barrels of oil present in this newly discovered step out area, with expected initial production rates of 1,200 to 2,500 gross barrels of oil a day, or 325 to 675 barrels of oil daily net revenue interest to Vaalco.
Looking ahead, the company said operations are underway to begin drilling the South East Etame 4H development well, based on this successful appraisal wellbore.
"The South East Etame 4P is an important appraisal wellbore and was drilled to further delineate our potential resource base at South East Etame," said Vallco Chief Executive Cary Bounds.
"We remain optimistic about our outlook for 2020 and believe that we are well positioned to face the headwinds caused by the recent downward pressure on oil prices," added Bounds.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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