Vaalco Energy (NYSE:EGY) +2.8% pre-market on Tuesday after saying it successfully drilled a well in the Etame field offshore Gabon, finding sands that beat the company's expectations.
Vaalco (EGY) said the North Tchibala 2H-ST well encountered nearly 100 meters of gross Dentale sands, which are analogous to sands that were productive elsewhere in the field, with similar porosity and permeability.
The company also said it is close to completing installation of a floating storage and offloading vessel.
"The positive results from this well gives us increasing confidence in targeting the Dentale sand for production at Etame in addition to the Gamba, thereby further increasing the production runway from this high-quality field," CEO George Maxwell said.
Vaalco Energy's (EGY) "deep value earns [the] strongest buy recommendation in [the] energy sector," Ben Clarence writes in a bullish analysis posted recently on Seeking Alpha.