U.S. Markets closed

Vaalco: Africa exploration well to be abandoned

HOUSTON (AP) -- Vaalco Energy said Monday that an exploration appraisal well drilled at the Ebouri field off the coast of the African nation of Gabon has encountered water and will be abandoned.

The Houston-based energy company said that the well was drilled to evaluate an untested fault block on the South West flank of the field. The water was encountered in the Gamba reservoir and the Dentale formation.

Vaalco also said it will soon start working on installing new electric submersible pumps on its producing well in Gabon's Ebouri field. The contracted rig will then move to drill an exploration well on Prospect Ovoka. The well will be drilled to assess the Gamba reservoir and underlying Lucina formation. It is estimated that Ovoka may have potential reserves of more than 30 million gross barrels of recoverable oil.

Shares of Vaalco Energy Inc. fell 33 cents, or 5.8 percent, to $5.39 in afternoon trading. The stock dropped to $5.16 earlier in the session, its lowest point in more than a year.