VAALCO Energy Inc has provided an update on the South Tchibala 1HB-ST well, as well as updated full year production guidance.

Etame: The South Tchibala 1HB-ST

The South Tchibala 1HB-ST discovered two potential Dentale producing zones, the Dentale D1 sand and the Dentale D9. The first completion was in the shallower D1 which included a hydraulic fracture treatment to increase both the production flow rate and recovery from the D1 interval.

To date, production rates have been well below the minimum recommended operating range of the ESP which has required more frequent well cycling to prevent ESP damage. Pressure transient analysis has been used during well shut-in periods to determine D1 reservoir characteristics in this area. According to several analyzed pressure build-ups, multiple boundaries near the well and low permeability have combined to restrict the capability of the well to continuously provide oil at stable rates. Production and shut-in cycling of the well will be continued to determine if production improvements will occur and to project future reserve recovery expectations.

The additional Dentale D9 (15 meters net hydrocarbons) interval can be tested and completed in the future and has an estimated OOIP range of 4 to 15 MMBO.

Production Guidance

In conjunction with the South Tchibala 1HB-ST well performance, VAALCO’s full year 2022 net production guidance is being reduced by 750 NRI BOPD at the midpoint to a range of 9,000 to 9,500 NRI BOPD. Previously VAALCO’s full year 2022 production guidance was 9,500 to

The Company is an established operator within the region, holding a 63.6% participating interest in the Etame Marin block, located offshore Gabon, which to date has produced over 126 million barrels of crude oil and of which the Company is the operator.

 “The production from the D1 formation of the South Tchibala 1HB-ST has been below expectations and as a result, we are lowering full year 2022 production guidance by 750 NRI BOPD at the midpoint. Despite this, we remain optimistic about the D9 formation and plan to recomplete that interval in the South Tchibala 1HB-ST wellbore during our next drilling campaign. We plan to drill additional wells in the 2021/2022 drilling campaign that could positively impact our production toward the end of the year and into 2023.

By exercising our additional options on the current drilling rig in a time of continued strong pricing, we are maximizing our potential to add meaningful reserves and production to VAALCO’s portfolio. The Etame asset is a premier, high-quality field that has produced over 126 million barrels of oil since we began producing it over 20 years ago and we believe there is still significant upside to be captured over the next decade,” George Maxwell, VAALCO’s Chief Executive Officer commented.