VAALCO Energy reduces 2022 production guidance

VAALCO Energy Inc. reduced 2022 guidance based on results from the South Tchibala 1HB-ST well in Etame field, offshore Gabon.

The well discovered two potential Dentale producing zones, Dentale D1 and Dentale D9 (OGJ Online, June 2, 2022). The Deep Dentale D1 sand interval was completed with a small frac pack.

This sand interval has good quality oil with low gas oil ratio that has produced an average of 150-200 b/d. Production rates have been below the minimum recommended operating range of the electrical submersible pump (ESP), which has required more frequent well cycling to prevent damage. Due to low flow volumes below the minimum recommended operating range of the ESP, the well will be intermittently flowed using well cycling to determine if production improvements will occur and to project future reserve recovery expectations.

Plans are to evaluate and recomplete the D9 interval during the next drilling campaign which should yield higher oil production rates based on analogy to the North Tchibala sands currently on production.

The well penetrated a thin section of the Gamba sand that is not economically viable to complete in this wellbore.

The Dentale D9 interval has an estimated original oil in place of 4-15 million bbl. 

Primarily due to the South Tchibala 1HB-ST well performance, VAALCO’s full year 2022 net production guidance is being reduced by a net 750 b/d at the midpoint to a range of 9,000-9,500 net b/d.

VAALCO plans to drill additional wells in the 2021-2022 drilling campaign that could positively impact production toward yearend and into 2023.

VAALCO is operator in Etame Marin block (63.6%) with partners Addax Petroleum Co. (33.9%) and PetroEnergy Resources Corp. (2.5%).