VAALCO Energy, Inc. (EGY) issued an operational update on its oil and gas exploration and development activities in the offshore area near Africa.

VAALCO Energy, Inc. is drilling the Southeast Etame No. 1 well, which is located offshore Gabon. The original well was drilled to a depth of approximately 9,000 feet and found sixteen feet of net oil pay in the Gamba sandstone formation.

VAALCO Energy, Inc. has just completed a sidetrack well to the original well, and also found net oil pay. The company estimates that the size of the net oil pay is approximately 90 feet.

VAALCO Energy, Inc. reported that it would conduct further study of the formation to determine the commercial potential of the well, and the best method of developing it.

VAALCO Energy, Inc. has leased the Sapphire Driller, an offshore drilling unit, and will start drilling the Etame 7H, another well to delineate the prospect. The company said that the well would be completed in the fourth quarter of 2010. Futures prospects for the company include the South Tchibala field, where the company will test the Gamba and Dentale formations in the Omangou prospect.

VAALCO Energy, Inc. is the operator of the Etame Field, and holds a 28% interest in the field. The company’s partners on the Etame Field include Addax Petroleum Etame Inc., Sasol Petroleum Etame Limited, Sojitz Etame Limited, PetroEnergy Resources Corp. and Tullow Oil Gabon SA.

For more information on the company, go to http://www.vaalco.com/

Let us hear your thoughts below: