The Southeast Etame No. 1 (ETSEM-1) well reached a total depth of 9,045 feet (2,757 meters) and encountered about 16 feet (5 meters) of the Gamba sandstone section, which logged oil full to the base. The sandstone encountered in the well is the same reservoir that produces in the Etame, Avourna, South Tchibala and Ebouri fields. The ETSEM-1 well is in the boundaries of the Etame Development Area, 3 miles (5 kilometers) southeast of the Etame field offshore Gabon. VAALCO is sidetracking the well to confirm the oil accumulation and seek the oil/water contact in the Gamba sandstone section to determine if the discovery is commercial. Drilling of the sidetrack well should take about 22 days, and if necessary, an additional sidetrack well will be drilled to further delineate the prospect. If proven commercial, the company plans to develop and tie-back the field to existing infrastructure.
Following the current activities, VAALCO will move the drilling rig to the Etame field to drill a horizontal development well. Drilling of the Etame 7H development well should be completed during the third quarter of 2010.
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