REG - Vaalco Energy Inc - FPSO REFURBISHMENT PROJECT

VAALCO EnergyAnnouncement

03/02/2025 07:15

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RNS Number : 6132V  Vaalco Energy Inc  03 February 2025

 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION

 

VAALCO ENERGY, INC. ANNOUNCES SIGNIFICANT MILESTONE IN ITS CÔTE D'IVOIRE FPSO
DRY DOCK REFURBISHMENT PROJECT

HOUSTON - February 3, 2025 - VAALCO Energy, Inc. (NYSE: EGY; LSE: EGY)
("Vaalco" or the "Company") is pleased to announce a significant milestone in
its Côte d'Ivoire Floating Production Storage and Offloading vessel ("FPSO")
Dry Dock Refurbishment Project.

In alignment with the project timeline, the FPSO Baobab Ivoirien MV10,
operated by Canadian Natural Resources International ("CNRI"), ceased
hydrocarbon production as scheduled on January 31, 2025. The final lifting of
crude oil from the vessel is set to take place on or around February 6, 2025.

The project team has commenced mobilization efforts, deploying the necessary
workforce support vessels and equipment to facilitate the safe disconnection
of the FPSO. The vessel is planned to be wet towed to the shipyards in Dubai
for refurbishment upon departure from the field on March 24, 2025.

"We are pleased with the progress of this critical project and remain
committed to ensuring a smooth and efficient transition for the FPSO
disconnection and refurbishment which we expect, when complete, will allow
production to continue until at least 2038, subject to the final regulatory
approvals on the license extension and further investment," said George
Maxwell, Vaalco's Chief Executive Officer. "This milestone represents another
step forward in delivering on our strategic objectives while maintaining the
highest standards of safety and operational excellence. We have already been
paid back 1.8x 1  (#_ftn1) our initial net investment in Côte d'Ivoire in the
eight months since closing and the performance of the asset has tracked well
ahead of our expectations at the time of the acquisition."

Vaalco will provide further updates as the project progresses.

About Vaalco

 

Vaalco, founded in 1985 and incorporated under the laws of Delaware, is a
Houston, Texas, USA based, independent energy company with a diverse portfolio
of production, development and exploration assets across Gabon, Egypt, Côte
d'Ivoire, Equatorial Guinea, Nigeria and Canada.

 

For Further Information

 Vaalco Energy, Inc. (General and Investor Enquiries)  +00 1 713 543 3422
 Website:                                              www.vaalco.com

 Al Petrie Advisors (US Investor Relations)            +00 1 713 543 3422
 Al Petrie / Chris Delange

 Buchanan (UK Financial PR)                            +44 (0) 207 466 5000
 Ben Romney / Barry Archer                             Vaalco@buchanan.uk.com

 

Forward Looking Statements

 

This press release includes "forward-looking statements" within the meaning of
Section 27A of the Securities Act of 1933, as amended (the "Securities Act")
and Section 21E of the Securities Exchange Act of 1934, as amended, which are
intended to be covered by the safe harbors created by those laws and other
applicable laws and "forward-looking information" within the meaning of
applicable Canadian securities laws. Where a forward-looking statement
expresses or implies an expectation or belief as to future events or results,
such expectation or belief is expressed in good faith and believed to have a
reasonable basis. All statements other than statements of historical fact may
be forward-looking statements. The words "anticipate," "believe," "estimate,"
"expect," "intend," "forecast," "outlook," "aim," "target," "will," "could,"
"should," "may," "likely," "plan" and "probably" or similar words may identify
forward-looking statements, but the absence of these words does not mean that
a statement is not forward-looking. Forward-looking statements in this press
release include, but are not limited to, statements relating to (i) estimates
of future drilling, production, sales and costs of acquiring crude oil,
natural gas and natural gas liquids; (ii) expectations regarding Vaalco's
ability to effectively integrate assets and properties it has acquired as a
result of the Svenska acquisition into its operations; (iii) expectations
regarding future exploration and the development, growth and potential of
Vaalco's operations, project pipeline and investments, and schedule and
anticipated benefits to be derived therefrom; (iv) expectations regarding
future acquisitions, investments or divestitures; (v) expectations of future
balance sheet strength; and (vi) expectations of future equity and enterprise
value.

 

Such forward-looking statements are subject to risks, uncertainties and other
factors, which could cause actual results to differ materially from future
results expressed, projected or implied by the forward-looking statements.
These risks and uncertainties include, but are not limited to: risks relating
to any unforeseen liabilities of Vaalco; the ability to generate cash flows
that, along with cash on hand, will be sufficient to support operations and
cash requirements; risks relating to the timing and costs of completion for
scheduled maintenance of the FPSO servicing the Baobab field; and the risks
described under the caption "Risk Factors" in Vaalco's 2023 Annual Report on
Form 10-K filed with the SEC on March 15, 2024 and subsequent Quarterly
Reports on Form 10-Q filed with the SEC.

 

Inside Information

This announcement contains inside information as defined in Regulation (EU)
No. 596/2014 on market abuse which is part of UK domestic law by virtue of the
European Union (Withdrawal) Act 2018 ("MAR") and is made in accordance with
the Company's obligations under article 17 of MAR. The person responsible for
arranging the release of this announcement on behalf of Vaalco is Matthew
Powers, Corporate Secretary of Vaalco.

 

 

 1  Payback of 1.8x is based on unaudited operational cash flow for the Côte
d'Ivoire assets compared to the acquisition price of $40.2MM as of 31st
December 2024.

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