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VAALCO
Starts Drilling in Ebouri Field Offshore Gabon
11-23-2008
VAALCO has commenced
drilling its development well in the Ebouri field and at its appraisal well
(North Ebouri) in the Etame block. These two wells, together with the five other
development and exploration wells planned over the coming months, expose VAALCO
to over 50 million net barrels, or an 8-fold potential increase to the Company's
current 6.2 million barrels of proved reserves.
For the development well in
the Ebouri field, the Adriatic 6 came on hire to VAALCO on November 6 and was on
location in mid-November. First oil production from this well is expected in
January 2009. VAALCO continues to expect production at a rate sufficient to
bring the Company's total production to approximately 25,000 barrels per day
(bpd). The Company currently produces 20,500 bpd.
In the Etame block, the Pride Cabinda was on location in mid-November. In
addition to the appraisal well (North Ebouri) where drilling has commenced for
possible expansion of the Ebouri field, VAALCO plans two wells (North Etame and
South East Etame) on newly mapped structures. The wells will be drilled back to
back.
"We are pleased to have commenced drilling as expected and look forward to
reporting continued progress on our drilling and exploration program," said
Robert L. Gerry, III, Chairman and CEO.
Additional development and exploration wells planned over the coming months
include:
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Two exploratory wells onshore Gabon in the Mutamba concession: VAALCO
remains on schedule to commence drilling the first of these two exploratory
wells in December 2008. Combined potential reserves for these wells are
expected to be in excess of 30 million barrels. VAALCO has a 100% working
interest in the onshore Mutamba block.
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One exploratory well in Angola: The Company expects to move forward on the
planning for a well on Angola Block 5 during the third quarter of 2009
depending upon rig availability. The Company has recommended to the
consortium a prospect with three objective zones, both above and below the
salt layer on the block. Total potential from all three objectives is 150
million gross barrels. VAALCO has a 40% working interest in Block 5.
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Interest in North Sea: VAALCO has a 25% interest in a gas prospect on Block
48/25c in the British North Sea. The Company is participating with Century
Exploration on the well, which is an offset to a former Shell gas discovery
made in 1987. 3-D seismic data indicates the ability to get higher on the
structure than the earlier well, increasing the potential reserves to 60 Bcf.
VAALCO continues to expect that drilling will begin in the fourth quarter of
2008.
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