VAALCO gets IFC loan for work off Gabon

VAALCO Energy Inc., Houston, has received a $65-million reserve-based loan facility from IFC, part of the World Bank Group, to support further oil and gas development on the Etame Marin Block offshore Gabon.

VAALCO Energy Inc., Houston, has received a $65-million reserve-based loan facility from IFC, part of the World Bank Group, to support further oil and gas development on the Etame Marin Block offshore Gabon.

Subsidiary VAALCO Gabon, operator with a 28.1% working interest in the block, plans to install two platforms this year.

One, a 4-pile, 8-slot unit, will be installed in the second half of the year in 85 m of water on the southern edge of Etame field. The cost will be $175 million gross. The operator plans to drill three wells from the platform initially at $25 million/well gross to develop 10 million boe of reserves.

Also in the second half VAALCO Gabon plans to install a similarly configured platform, also in 85 m of water, in what it calls the South East Etame/North Tchibala (SEENT) project (OGJ Online, June 16, 2010). Three initial wells will cost $25 million each. The project is to develop 7 million bbl of oil reserves. Gross investment in the SEENT platform will be $150 million.

Current production from the Etame Marin block recently was 18,000 b/d gross. Flow is from wells completed subsea in Etame field and tied back to a floating production, storage, and offloading vessel and from wells drilled from platforms on Avouma-South Tchibala and Ebouri fields, all tied back to the FPSO.

VAALCO’s partners in the Etame Marin permit are Addax, Sasol, Tullow, Sojitz, and PetroEnergy.

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