Vaalco Energy Inc - Houston, Texas-based exploration and production in West Africa - On Tuesday says drilling of the North Tchibala 2H-ST well in the Etame field offshore Gabon was successful. Says it encountered almost 100 metres gross Dentale pay sands, exceeding expectations. Vaalco expects a "stabilized flow rate by the end of October".
Chief Executive Officer George Maxwell says: "With the successful drilling of the North Tchibala 2H-ST well that encountered multiple Dentale sands in the wellbore, we are proceeding with completion and fracking in the Dentale 18/19 interval. The positive results from this well gives us increasing confidence in targeting the Dentale sand for production at Etame in addition to the Gamba - thereby further increasing the production runway from this high-quality field."
Adds the Dentale sands initially targeted for production in this well are analogous to Dentale sands previously productive in the North Tchibala field, with similar porosity and permeability.
Back in July, Vaalco agreed to an all-share merger with Calgary, Alberta-based TransGlobe Energy Corp. Vaalco shareholders will hold about 54.5% of the combined company, with shareholders of TransGlobe owning the remaining 45.5%.
Current stock price: 390.00 pence
12-month change: up 30%
By Xindi Wei; xindiwei@alliancenews.com
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Vaalco Energy (EGY)