What Does VAALCO Energy’s Latest Drilling Deal Mean for Gabon’s Future?

Highlights:

• VAALCO Energy has secured a contract for its drilling campaign in Gabon, set for mid-2025.
• The program will focus on multiple development, appraisal, and workover wells across key fields.
• The drilling campaign includes a targeted effort to access previously shut-in production and reserves.

VAALCO Energy (NYSE:EGY), an oil and gas exploration and production company, has recently announced a contract with Borr Drilling for its drilling program in Gabon, scheduled to begin in mid-2025. The campaign will consist of various development and appraisal wells, alongside workovers, focusing on three primary areas within the region.

Drilling Focus Areas

The drilling campaign will concentrate on the Etame field, one of the company’s core assets, where multiple wells are expected to be drilled. Additionally, work will occur at the SEENT platform, which is situated within the same productive region. VAALCO will also target the Ebouri field, where a redrill will be performed, and several workovers are planned. The latter work is particularly significant as it will focus on accessing previously shut-in production and reserves that were unavailable due to H2S, a natural gas component that posed production challenges in the past.

Enhancing Production and Reserves

Through this extensive drilling program, VAALCO aims to enhance its production capacity and add additional reserves. The wells planned for both the Etame and SEENT platforms are expected to support sustained production and potential growth, helping the company secure its position in the region for the future.

Strategic Partnership with Borr Drilling

The collaboration between VAALCO and Borr Drilling signifies a strategic move for the company, ensuring that the necessary infrastructure and expertise are in place for a successful drilling campaign. This partnership will allow VAALCO to leverage Borr's drilling capabilities, which will be crucial in executing the planned wells across the three primary fields.

Environmental and Operational Considerations

As with any major drilling campaign, environmental and operational considerations will play a pivotal role in the project’s execution. Ensuring that the necessary precautions and best practices are followed will be critical to mitigating potential risks and maximizing the efficiency of the drilling program.

Future Outlook for VAALCO Energy

The success of this drilling campaign is expected to contribute significantly to VAALCO's long-term production goals in Gabon. By expanding reserves and improving production capabilities, the company is positioning itself to remain a key player in the region's oil and gas sector. As the campaign progresses, further developments will be monitored to assess its impact on both production and future growth.