North Tchibala 2-H Well Brought Online

Source: www.gulfoilandgas.com 12/14/2015, Location: Africa

VAALCO Energy, Inc announced that the North Tchibala 2-H well, the second development well drilled by VAALCO in the North Tchibala field, was brought online at a stabilized rate of approximately 500 gross barrels of oil per day (BOPD), or 122 BOPD net revenue interest to VAALCO. The well was drilled to a measured depth of 16,476 feet and encountered good quality sands in the Dentale D-18/19 reservoir. The well came on production flowing naturally with no H2S and water free. Based on production tests in nearby exploration wells, the quality of the reservoir would indicate the potential for a higher flow rate than has been achieved thus far. VAALCO is gathering diagnostic data to assess the productive capacity of the North Tchibala 2-H well and to determine if there is remedial work that might increase the flow rate from the well.

While the Dentale formation is productive in onshore Gabon fields, the North Tchibala field represents the first Dentale production developed in the offshore waters of Gabon. The first North Tchibala producer, North Tchibala 1-H, targeted the shallower Dentale D-9 formation at approximately 11,200 feet measured depth and was placed on production during the third quarter of 2015. The North Tchibala 1-H well initially produced at a sustained rate of 3,000 BOPD flowing naturally for six weeks with minimal pressure depletion. In late October, the Company observed a decline in bottomhole pressure accompanied by an increase in gas production rates. The well was choked back to approximately 1,500 BOPD and bottomhole pressure has now stabilized. Production continues to remain at that level, which is still at initial expectations for the well. VAALCO will continue to monitor both Dentale wells and take appropriate actions to optimize long term production and reservoir performance.

The North Tchibala 2-H is the third successful well drilled and placed on production at VAALCO's new Southeast Etame/North Tchibala (SEENT) platform located in approximately 260 feet of water offshore Gabon. VAALCO is the operator of the Etame Marin permit area and owns a 28.1% working interest and a 24.4% net revenue interest. The Transocean Constellation II jackup rig has mobilized to the nearby Avouma/South Tchibala platform to conduct workover operations to replace electrical submersible pumps (ESPs) on three existing production wells, two of which are off production. Sea conditions have improved allowing the safe movement of the rig.

Steve Guidry, VAALCO's Chairman and CEO commented, "I am pleased to announce that the North Tchibala 2-H well encountered very good quality reservoir. As a result, we are further encouraged about the long term upside potential for the Dentale formation on our Etame Marin acreage, but it will take time to monitor the ongoing performance of the first two wells and to test other areas of our concession with additional wells in the future. While no more wells are planned for the SEENT platform in the near term, we are evaluating the drilling of a development well at the Etame platform in early 2016 following our three-well workover program. The Etame development well would target the Gamba formation as well as test the Dentale reservoir that we believe could exist at deeper depths in that area."

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Related Categories: Artificial Lift  Cementing, Stimulation  Directional Drilling  Drilling  Drilling Engineering & Equipment Systems  Enhanced Oil Recovery  General  Logging, Perforating, Testing  Offshore Drilling  Reservoir/Completion Consultants  Workover & Well Services  Workover Rigs/Services 

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