In its Q2 2019 results announcement, operator VAALCO Energy Inc (Vaalco) reported that it was looking for a partner âon a promoted basis that will cover all or substantially all the costs to drill an exploratory wellâ in its Block P Development Area (PDA), shallow to deep waters of the Rio Muni Basin.   Since November 2018, Vaalco expects to obtain the official approval from the Equatorial Guinea Ministry of Mines and Hydrocarbons (EG MMH) for acting as administrative operator of PDA. Prior to that, the company was only technical operator with 31% WI. It is understood that the new farminee will acquire the current GEPetrolâs 58.4% participating interest. The remaining partners are unchanged: Atlas Petroleum International Ltd with 5.6% and Crown Energy Ventures Corp with 5%. Upon EG MMH approving the new joint venture owner, Vaalco and its partners will have one year to drill an exploration well.  In November 2018, the EG MMH also lifted the permitâs suspension, presumably in force since 2015, and extended the permitâs validity for two years until November 2020.   Vaalco and its partners will now evaluate the timing and budgeting for development and exploration activities under a development and production area in the block, including the approval of a development and production plan.   Background Information  In early January 2015, Vaalco Energyâs partner Crown Energy informed that the authorities had given the approval to commence pre-front end engineering design (pre-FEED) studies for the development of the Venus field. Vaalco also informed that it was working together with GEPetrol in order to prepare a revised capital budget and work program for submittal to the Ministry of Mines Industry and Energy. Vaalco informed in September 2014 that it was aiming to drill two production wells and one water-injection well in the Venus field. Vaalco also plans to lease a FPSO. First oil extracted from the Upper Cretaceous sands was expected in 2017.  Gross unrisked recoverable oil resources in the Venus field were estimated between 17 and 21 MMbo according to Vaalco Energy. Vaalco informed that there are a number of other potential prospects and leads within the acreage. The prospects include the Marte field and the SW Grande field with gross unrisked recoverable oil resources of 16-70 MMbbl and 10-180 MMbbl, respectively. Vaalco informed that two exploration wells are planned in the new prospects, but they will be only drilled after the development of the Venus field (2017). The Marte well will likely target Upper Cretaceous turbidites, whereas the SW Grande well will have Tertiary channels and Upper Cretaceous sands as targets.
Operator VAALCO Energy Inc (Vaalco) reported that it was looking for a partner âon a promoted basis that will cover all or substantially all the costs to drill an exploratory wellâ in its Block P Development Area (PDA), shallow to deep waters of the Rio Muni Basin