VAALCO Energy says that oil production has commenced from the Company’s new development well in the Ebouri field. The well was drilled from one of the three well slots on the Ebouri platform. The platform was installed in a water depth of 250 feet.

As previously announced, VAALCO commenced drilling this development well in November 2008 with the jack-up rig Adriatic 6. The first pilot hole was drilled to the south of the original Ebouri discovery and a second pilot hole was drilled to the northwest of the original discovery. Both of these pilot holes were successful in delineating additional Gamba sandstone reservoir above the oil water contact, thereby increasing the acreage and reserves of the Ebouri field. The development well was completed horizontally on the same orientation as the second pilot hole. VAALCO has a 28.1% working interest in the Etame license area.

“I am pleased to begin 2009 with the success of both our development well and appraisal well in the Ebouri field,” said Robert Gerry, Chairman and CEO of VAALCO. “Our drilling program continues at a strong pace and with results that have exceeded our expectations. These results combined with VAALCO’s solid capital position give us confidence in our ability to continue growing reserves and shareholder value.”

Tags: VAALCO Energy