(Alliance News) - Vaalco Energy Inc on Thursday said it is "very pleased" with the performance of a well offshore Gabon since coming online.
Vaalco said the Etame 11H development well has been completed, finding 860 metres of horizontal section in the Gamba reservoir. It was brought into production earlier January.
Houston-based Vaalco said Etame 11H has produced at an initial rate of 5,200 gross barrels of oil a day, beating expectations, with 1,400 barrels net to Vaalco.
This has increased Vaalco's total production to around 5,900 barrels a day net. In the last quarter of 2019, it averaged 3,664 barrels a day net, with 3,476 barrels a day net over 2019.
The net exit production rate for 2109 was 4,800 barrels a day, which includes the Etame 4H and 9H wells which came online in December but does not include 11H.
"We are very pleased with the successful results of the second development well in our 2019 to 2020 drilling campaign that was drilled and completed on schedule and within budget," commented Chief Executive Cary Bounds.
"The high-quality reservoir we encountered in both the Etame 9H and Etame 11H wells has yielded two significant new producing wells and validated our strategy to undertake this program."
"Our 2019 to 2020 drilling program is certainly delivering on its objectives through the enhancement of production and we continue to be encouraged by the recent strengthening of oil prices which bodes well for us given our predominantly fixed cost base at Etame," Bounds continued.
"As a result, we are optimistic about our outlook for 2020 and remain focused on executing on our strategic plan and delivering continued positive operational results."
Vaalco shares were untraded in London on Thursday, last quoted at 182.50 pence each.
By George Collard; georgecollard@alliancenews.com
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Vaalco Energy (EGY)