VAALCO Energy announces seismic survey for Etame Marin block

Highlights

• Committed to acquiring new proprietary 3D dual-azimuth seismic data over the entire Etame Marin block which will be used to optimise and de-risk future drilling locations as well as identify new potential locations;
• Expects completion of seismic acquisition by year-end 2020 with processing to be fully completed by 4Q21;
• Estimates the costs of both acquisition and processing of seismic data is approximately US$4 to US$5 million, net to VAALCO, and will be fully funded with cash on hand and cash from operations;
• Enhances and updates current seismic, some of which dates back to the field’s discovery in the 1990s, while offering the first continuous 3D seismic over the entire block;
• Maintained strong production performance in 3Q20 with production estimated at 4370 net bpd to VAALCO, at the midpoint of guidance; and
• Continues to fully fund operations year to date in 2020 with internally generated cash flow and expects a cash balance of approximately US$37 million at 30 September 2020, excluding any joint venture owner advances.

Cary Bounds, CEO, commented: “We are proud of the highly successful and transformational drilling program that we completed earlier this year and look to build on that success by beginning to plan for future drilling programs. Our long-term strategy is to optimize every location that we plan to drill and identify new locations to add to our drillable inventory. We believe that by acquiring and processing a state-of-the-art proprietary 3D, dual-azimuth seismic survey over our entire Etame block we are accomplishing these goals. As a result of our strong operational performance to date in 2020, we continue to be cash flow positive and the company is fully funded for all current activities including the upcoming seismic programme. We have lowered our operating cost per barrel and remain committed to optimizing production to ensure that we continue to generate free cash flow to fund future field development. We are confident in the long-term potential at Etame and believe acquiring and processing seismic is the first step toward preparing for our future drilling campaigns that we believe will deliver long-term growth, in line with our strategic objectives.”

The company expects the full field 3D survey will optimise future drilling locations, provide better imaging of existing satellite and infill locations, as well as identify additional upside opportunities.

Read the article online at: https://www.oilfieldtechnology.com/exploration/01102020/vaalco-energy-announces-seismic-survey-for-etame-marin-block/