(Alliance News) - Vaalco Energy PLC said on Tuesday it has successfully completed the Etame 9H development well, which has performed ahead of expectations.
The exploration company, focused on west Africa, said it has successfully completed the Etame development well including an approximately 1,000 foot horizontal section in the Gamba reservoir.
It was brought to production at a flow rate of 5,500 gross barrels of oil per day, giving the company 1,500 net gross barrels of oil per day.
Due to the high reservoir quality, Vaalco said, production is higher than the pre-drill estimate of 2,500 to 3,500 gross barrels of oil per day.
As a result, Vaalco has now increased its forecast net exit production rate for 2019 to between 4,500 to 4,700 gross barrels of oil per day, up 16% from its prior estimate of 3,800 to 4,100 gross barrels of oil per day.
The company also said it has started drilling the Etame 11H horizontal development well with production expected to start in late January.
Cary Bounds, chief executive, said: "We are very excited with the continued success that we have had in the 2019/2020 drilling program thus far as we demonstrate the development potential from the Etame field."
"We are executing on out strategic plan, building positive momentum into 2020 and remain focused on maintaining our record of operational success," Bounds said.
Vaalco shares were up 8.9% in London at 152.50 pence each on Tuesday.
By Loreta Juodagalvyte; loretajuodagalvyte@alliancenews.com
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Vaalco Energy (EGY)