Africa focused oil and gas firm Vaalco Energy has brought online another well at the Etame field offshore Gabon. The well Etame 11H well has been producing at a higher than anticipated rate, the company said Wednesday.
The Etame 11H well is the second development well in Vaalco0s 2019/2020 program. Vaalco reached a total measured depth of approximately 9,022 feet (2750 meters) in the Etame 11H development well and completed approximately 860 feet (262 meters) of horizontal section within the Gamba reservoir. Similarly to Etame 9H well, the initial development well in the 2019/2020 program, the horizontal section of the Etame 11H well is at the top of the Gamba structure but at a different location.
After installing production equipment, the Etame 11H well was brought online at a stabilized initial flow rate of approximately 5,200 BOPD gross, (1,400 BOPD net to Vaalco), which, per Vaalco, is significantly more than the pre-drill expected initial flow rate of 2,500 to 3,500 gross BOPD (675 to 960 BOPD net to Vaalco).
The Etame 9H well, which came on stream with a stabilized initial flow rate of 5,500 BOPD in December, is currently producing approximately 4,200 BOPD which is in-line with expectations for wells after they are online for a similar period of time. According to Vaalco, the Etame 11H well is expected to experience a similar decline rate during its initial month of production, and they both came online at significantly higher-than-expected rates.
Vaalco also shared it had recently restored production on the Etame 4H well on the same platform, that had been previously shut-in.
Furthermore, shortly after completion of the Etame 11H development well, the company began the workover of the Etame 10H well, also on the same Etame platform, to replace the electric submersible pump (ESP) which if successful, could restore additional production of approximately 735 gross BOPD, or 200 BOPD net to Vaalco. The ESP failed in September 2019 after 4.5 years of service.
CEO: Program delivering on objectives
Following the execution of the workover of the Etame 10H well, the company plans to move the rig to the SEENT platform to drill the SE Etame 4P appraisal wellbore to evaluate a Gamba step out area in Southeast Etame. Upon drilling this second appraisal wellbore, Vaalco will have satisfied the drilling commitment as part of the PSC extension that the company signed in late 2018. Vaalco, based in Houston, produced an average of 13,560 BOPD gross, (3,664 BOPD net to VAALCO) in the fourth quarter of 2019.
Cary Bounds, Vaalco, Chief Executive Officer, commented, "We are very pleased with the successful results of the second development well in our 2019/2020 drilling campaign that was drilled and completed on schedule and within budget. 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.
We have increased our total Company net production to approximately 5,900 BOPD which is up 70% from our 2019 full year net average production of 3,476 BOPD as a result of the Etame 9H and Etame 11H wells in addition to restoring production from the previously shut-in Etame 4H well. We have since commenced the workover on the Etame 10H well, which if successful, could restore additional production of approximately 200 BOPD net to Vaalco."
We then plan to move the rig to the SEENT platform to drill the SE Etame 4P appraisal wellbore, which could confirm additional development well locations in the Gamba reservoir. Our 2019/2020 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.
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."