Robert Gerry, chairman and CEO of Vaalco Energy, said: “As demonstrated by the exploration and development wells we plan to drill in the coming year, we believe the Etame Marin block offers a number of potential opportunities to add to production and reserves. This extension will ensure we have ample time to fully evaluate additional leads and prospects on the Etame Permit that we have identified.”
In exchange for the extended permit, Vaalco and its partners paid $4.5m to the Republic of Gabon, $1.35m of which was paid by Vaalco. The partners also agreed to drill an additional exploration well, bringing the total required under the permit to two exploration wells, and to acquire additional 3-D seismic data, which is expected to be acquired in 2010.
Vaalco operates and owns its 30.35% interest in the Etame Exploration Permit through its subsidiary Vaalco Gabon Etame. Other partners are Addax Petroleum Etame (33.9%), Sasol Petroleum Etame (30.0%), Sojitz Etame (3.23%), and PetroEnergy Resources (2.52%).
Vaalco Energy is a Houston-based energy company principally engaged in the acquisition, exploration, development and production of crude oil.