VAALCO Energy has announced that it has signed a contract with Borr Jack-Up XIV Inc., a Borr Drilling affiliate, to drill two development wells and two appraisal wellbores, with the option to drill additional wells, as part of its 2021/2022 drilling programme, which is set to commence later this year.

The deal stipulates, among other things, that the drilling rig can arrive as early as December of this year, with the actual date dependant on other rig-related commitments.

George Maxwell, Chief Executive Officer, commented: “We continue to work with our joint owners at Etame on our shared goal of executing another successful drilling campaign that can significantly add production and reserves. Success on all four wells contained within the drilling campaign could result in an increase in production of 7,000 to 8,000 gross barrels of oil per day and significant reserve additions of up to 10.2 million barrels of oil for the two appraisal wellbores that would be converted from resources into 2P reserves at year-end 2022. We are excited to get our next drilling campaign underway later this year.”

“With the benefit of our hedging program, our capital commitments over the next 12 months are expected to be fully funded through our cash flow and cash on hand. Additionally, we have several initiatives underway geared toward maximizing our netbacks. We remain firmly focused on maximizing shareholder returns while we continue to progress our refreshed strategic objectives to deliver accretive growth.”

ABOUT VAALCO ENERGY

VAALCO Energy is a hydrocarbon exploration and production firm. The company headquarter is in Houston, Texas, and it operates principally in the Etame Marin block off the coast of Gabon. The company has 3,216 million barrels of oil equivalent (1.9681010 GJ) of proven reserves as of December 31, 2020, all of which was petroleum.