Company Net Production is Averaging 4,600 BOEPD
VAALCO Energy, Inc. (ticker: EGY) announced today that the Avouma 2-H well on the Avouma Platform offshore Gabon is back on production after utilizing a hydraulic workover unit to replace a failed Electric Submersible Pump (ESP) system. The well is currently producing at a stabilized rate of 2,700 barrels of oil per day (BOPD) gross, or 730 BOPD net to VAALCO. With the addition of the two recent workover wells, total company net production is currently averaging 4,600 BOPD.
As previously announced, the ESP systems failed in both the South Tchibala 2-H and the Avouma 2-H wells on the Avouma Platform this past summer. Prior to temporarily shutting in the Avouma 2-H well after the ESP system failed, the well was producing approximately 2,400 gross BOPD or 650 BOPD net to VAALCO. Following completion of workover operations on the South Tchibala 2-H, previously described in a press release dated December 21st, workover operations on the Avouma 2-H were completed and the well was put back on production. The entire operation was conducted safely and efficiently with no injuries or threats to the environment. All personnel and equipment utilized during the combined operations on the two wells have been demobilized. The detailed inspection of the failed ESP components continues and it is expected that the cause of the failures will be determined during the first quarter of 2017. Monitoring of ESP operation and production optimization procedures continues for both wells.
Attractive combination of strong production volumes and higher oil prices
Cary Bounds, VAALCO’s Chief Executive Officer commented, “Following the successful workover of the South Tchibala 2-H well, we are pleased to have also restored production from the Avouma 2-H well at a higher rate than when it went offline this past summer. We have once again demonstrated our ability to safely and successfully conduct well interventions utilizing a hydraulic workover unit. Our net production has risen to approximately 4,600 barrels of oil equivalent per day, our highest rate since early summer 2016. We are pleased to begin 2017 with an attractive combination of strong production volumes and higher oil prices.”
