Following success, Vaalco Energy has elected to keep its Borr Drilling rig for another two wells offshore Gabon.
The Norve rig will drill two more wells for Vaalco. The operator said these would be the Ebouri 6H development well, in the Gamba formation, and a Northeast Avouma near-field exploration well. If the second is successful, the company could tie it into the Avouma platform.
Borr expects Vaalco to keep the Norve rig until August. It will then go to BW Energy, staying in Gabon, from October to May 2023.
Vaalco has just completed the South Tchibala 1HB-ST. The rig is now on its way to the SEENT platform to drill the last of the original wells, the ETBNM 2H-ST.
The South Tchibala well will add new reserves, Vaalco said, predicting it would give a stabilised flow within seven days. The well also found a second sand, the Dentale D9, with additional potential.
Vaalco CEO George Maxwell welcomed results from the well.
“The continued success of our 2021/22 drilling campaign, coupled with a strong pricing environment and financial efficiencies of keeping the rig on location has enabled us to extend the current four-well programme by an additional two wells,” he said.
In an effort to control costs, Vaalco is in the process of switching out offshore equipment. The company is moving from an FPSO to an FSO, named the Teli, previously the Cap Diamant. The FSO is due to leave Bahrain on July 7 and arrive in Gabon in early August.
Subsea work is under way, with DOF Skandi Constructor to arrive in Gabon late this month. It will reconfigure existing lines and install new lines.
Final hookup and commissioning for the Teli is due in the third quarter.
Maxwell said the replacement and reconfiguration work was on track. “These activities are expected to save approximately $20-25 million gross per year in operational costs through 2030 resulting in rapid payback and a material impact on production margins and free cash flow going forward,” he said.
Vaalco reiterated its production guidance for 2022 at 9,500-10,500 barrels per day, despite a slight fall in the second quarter to 9,200-9,300 bpd.