VAALCO, Sonangol secure offshore Angola license extension

VAALCO Energy has entered into the subsequent exploration phase on block 5 offshore Angola with partner Sonangol P&P.

Offshore staff

HOUSTONVAALCO Energy (NYSE: EGY) has entered into the subsequent exploration phase (SEP) on block 5 offshore Angola with partner Sonangol P&P.

The production sharing agreement was signed in 2006 with the Republic of Angola.

The SEP extends the exploration license for a further three years until Nov. 30, 2017. VAALCO and Sonangol have already completed 1,058 sq km (408 sq mi) over the outboard portion of the block, exceeding their obligation, and must now drill a total of four exploration wells during the extension period. This includes the two-well commitment under the primary exploration period that carries over to the SEP period.

VAALCO has contracted the semisubTransocean Celtic Sea for the first exploration well on the post-salt Kindele prospect. Kindele-1 will target the Mucanzo sand (Pinda group) with a planned TD of 2,250 m (7,382 ft), in a water depth of 101 m (331 ft). Recoverable resources could be 20-49 MMbbl, and the rig should arrive on location in mid-December. 

Steve Guidry, VAALCO chairman and CEO, says, "Although the SEP comes with additional commitments, we believe this is a coveted block with potential in the deep syn-rift and sag play. The SEP allows VAALCO and its partner to properly assess the results of the current seismic reprocessing that is being merged with previously licensed seismic data through pre-stack depth migration. This will help us determine the best opportunities in the presalt horizons.”

10/30/2014

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