Houston-based oil and fuel firm Vaalco Energy has accomplished nicely workover operations on the South East Etame 2H nicely, positioned offshore Gabon, and launched the Vantage-owned jack-up drilling rig.
Vaalco mentioned in an operational replace on Monday that the workover on the nicely restored manufacturing to 2,400 BOPD, in step with the manufacturing degree earlier than when the digital submersible pump (ESP) failed in early March 2020.
The firm added that it launched Vantage’s Topaz Driller jack-up on 9 April 2020, and doesn’t presently count on to carry out any further workovers to higher protect money stream within the present unsure atmosphere.
With the completion of the 2019/2020 drilling marketing campaign and the profitable South East Etame 2H workover, whole firm manufacturing is roughly 20,000 gross BOPD – 5,400 BOPD NRI to Vaalco.
During the primary quarter of 2020, Vaalco introduced two new wells on-line – the South East Etame 4P and South East Etame 4H, skilled regular operational downtime related to simultaneous manufacturing, drilling, and completion operations.
The firm additionally introduced manufacturing again on-line on account of performing two workovers. Production for the primary quarter of 2020 was 18,298 gross BOPD or four,944 BOPD NRI to Vaalco which was close to the excessive finish of first-quarter steerage of 5,000 BOPD NRI.
Vaalco additionally said that it had two liftings throughout the first
quarter of 2020, one in January and one in February, however the subsequent lifting for
85,000 barrels of oil that was scheduled for March was delayed to 1 April due
to poor climate situations.
As a end result, the gross sales volumes for the quarter have been down when
in comparison with the fourth quarter of 2019, regardless of the upper manufacturing within the
first quarter of 2020.
Cary Bounds, CEO of Vaalco, mentioned: “We proceed to execute operationally and have restored 2,400 gross BOPD of manufacturing with the profitable workover of the South East Etame 2H nicely. We have now launched the Vantage drilling rig after finishing the profitable 2019/2020 drilling marketing campaign and executing two workovers that restored manufacturing from wells that have been shut in on account of ESP failures.
“We are happy with the extremely profitable and transformational drilling program that has added significant manufacturing and considerably lowered our working prices per barrel. For the primary quarter of 2020, manufacturing was four,944 BOPD NRI, which is […] our highest manufacturing since This fall 2015.
“This offers us the boldness to reaffirm our full-year 2020 manufacturing steerage of four,400 to five,000 BOPD NRI. In addition, our robust manufacturing has helped to decrease our operational breakeven value of roughly $31.00 per barrel and, coupled with our present hedge portfolio, positions us nicely to navigate by means of the unsure macro atmosphere we face in the present day.
“Thus far, Vaalco’s operations haven’t been disrupted by the worldwide COVID-19 pandemic, and we have now managed by means of the logistical challenges that we have now confronted because the outbreak”.
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