REG - Vaalco Energy Inc - New $300 million revolving credit facility

VAALCO EnergyAnnouncement

05/03/2025 07:00

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RNS Number : 4316Z  Vaalco Energy Inc  05 March 2025

 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION

 

VAALCO ENERGY, INC. ENTERS INTO NEW $300 MILLION

REVOLVING CREDIT FACILITY

 

HOUSTON - March 5, 2025 - VAALCO Energy, Inc. (NYSE: EGY; LSE: EGY) ("Vaalco"
or the "Company") announced that it has entered into a new revolving credit
facility ("the new facility") with an initial commitment of $190 million and
the ability to grow to $300 million, led by The Standard Bank of South Africa
Limited, Isle of Man Branch with other participating banks and financial
partners.  This new facility, which is subject to customary administrative
conditional precedents, replaces the Company's existing undrawn revolving
credit facility that was provided by Glencore Energy UK Ltd.  The Company
arranged the new facility primarily to provide short-term funding that may be
needed from time-to-time to supplement its internally generated cash flow and
cash balance as it executes its planned investment programs across its
diversified asset base over the next few years.

Key terms include:

•     Six-year term with facility amortization to begin on September 30,
2026;

•     Initial commitment of $190 million with the ability to grow to
$300 million through a $110 million accordion;

•     Amounts drawn bear interest of 6.5% plus SOFR until the Côte
d'Ivoire Floating Production Storage and Offloading vessel ("FPSO") Dry Dock
Refurbishment Project is completed;

•     Interest rate will decrease to 6.0% plus SOFR once the FPSO
project is completed;

•     Undrawn available amounts incur a fee of 35% of margin per annum
and undrawn unavailable amounts incur a fee of 20% of margin per annum, with
semi-annual borrowing base redeterminations; and

•     Secured with Vaalco's Gabon, Egypt and Côte d'Ivoire assets.

"Closing this new credit facility will supplement our internally generated
cash flow and cash balance to assist in funding our robust organic growth
projects," said George Maxwell, Vaalco's Chief Executive Officer. "With $190
million in initial commitment and the ability to grow to $300 million, this
facility enables us to fund any short-term capital funding needs that may
occur as we execute the significant growth projects across our assets over the
next couple of years. We appreciate the support shown by our lending group
which we believe affirms the strength of our diverse asset base. We are
excited about the major projects that we have planned which are expected to
deliver a step-change in organic growth across our portfolio."

The Company entered into the new facility with The Standard Bank of South
Africa Limited, Isle of Man Branch as the lead bank on the facility. Other
participants include Rand Merchant Bank, The Mauritius Commercial Bank Limited
and Glencore Energy UK Ltd.

 

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 may also include "forward-looking information" within the
meaning of applicable Canadian securities law (collectively "forward-looking
statements"). 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 may
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 dividends; (vi)
expectations of future balance sheet strength; and (vii) 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.

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