VAALCO Energy has executed a contract with Borr Jack-Up XIV Inc, an affiliate of Borr Drilling, to drill two development wells and two appraisal wellbores with options to drill additional wells in Gabon
According to VAALCO Energy, this is in conjunction with its 2021/2022 drilling programme planned to begin later this year. The contract provides, among other things, that the drilling rig can be on location as early as December 2021, with the exact timing dependent on other commitments related to the rig.
George Maxwell, CEO, stated that the company aims to continue to work with its joint owners at Etame on the shared goal of executing another successful drilling campaign that can significantly add production and reserves.
“Success on all four wells contained within the drilling campaign could result in an increase in production of 7,000 to 8,000 gross barrels of oil per day and significant reserve additions of up to 10.2 mmbbl of oil for the two appraisal wellbores that would be converted from resources into 2P reserves at year-end 2022,” Maxwell added.
Maxwell continued, “With the benefit of our hedging programme, our capital commitments over the next 12 months are expected to be fully funded through our cash flow and cash on hand. Additionally, we have several initiatives underway geared toward maximizing our netbacks.”
