VAALCO Energy announced that the acquisition of three dimensional (3-D) seismic data at the Etame Marin block offshore Gabon has been completed.
“We are very pleased to have completed the acquisition of our new proprietary 3-D seismic survey over our entire Etame Marin Block. We will now proceed with the processing and analysis of the data that has been collected. Over the past 20 years, we have capitalized on the significant resource potential at Etame by increasing the ultimate recovery from the initial estimate of 30 million gross barrels of oil to 147 million gross barrels of oil on a 2P basis. Looking ahead, our new 3-D seismic survey is a vital tool in helping us unlock the remaining 116 million gross barrels of oil reserves and resources identified on the license. The new seismic data will help us to optimize every location that we plan to drill and potentially identify new locations to add to our drillable inventory. Additionally, our recent announcement of the acquisition of Sasol’s interest at Etame combined with the new 3-D seismic survey underscore our confidence in the long-term potential at Etame,” Cary Bounds, Chief Executive Officer, commented.
VAALCO expects the seismic survey to begin and conclude in the fourth quarter of 2020, with processing to be fully completed by the fourth quarter of 2021. The Company expects the full field 3-D survey will optimize future drilling locations, provide better imaging of existing satellite and infill locations, as well as identify additional upside opportunities. VAALCO projects the gross cost of both the acquisition and processing of the seismic survey to be between $13 and $15 million, or $4 to $5 million net to VAALCO. The Company plans to fund the costs with cash on hand and through cash from operations.
- Completed the acquisition of nearly 1,000 square kilometres of new dual-azimuth proprietary 3-D seismic data over the entire Etame Marin block which will be used to optimize and de-risk future drilling locations and potentially identify new drilling locations;
- Enhances sub-surface imaging by merging legacy data with newly acquired seismic allowing for the first continuous 3-D seismic over the entire block;
- Estimates the total costs of both the acquisition and processing of seismic data to be approximately $14 to $16 million gross over the period from Q4 2020 through Q4 2021 and VAALCO expects to fully fund its portion with cash on hand and cash from operations;
- Processing of the seismic data expected to begin in January 2021 with all data expected to be fully processed and analysed by Q4 2021; and
- Planning for the commencement of the next drilling campaign at Etame in late 2021 or early 2022.
VAALCO, founded in 1985, is a Houston, USA based, independent energy company with production, development, and exploration assets in the West African region.
The Company is an established operator within the region, holding a 33.6% participating interest in the Etame Marin block, located offshore Gabon, which to date has produced over 118 million barrels of crude oil and of which the Company is the operator.