REG - Vaalco Energy Inc - Operational and Financial Update

VAALCO EnergyAnnouncement

17/01/2024 07:00

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RNS Number : 9757Z  Vaalco Energy Inc  17 January 2024

THIS ANNOUCEMENT CONTAINS INSIDE INFORMATION

 

 

 

VAALCO ENERGY, INC. PROVIDES OPERATIONAL AND FINANCIAL UPDATE INCLUDING
PRODUCTION AND SALES VOLUMES FOR FOURTH QUARTER 2024

 

 

HOUSTON - January 17, 2024 - VAALCO Energy, Inc. (NYSE: EGY; LSE: EGY)
("VAALCO" or the "Company") today provided an operational and financial update
with production and sales volumes for the fourth quarter and full year of 2023
as well as its increased cash and cash equivalents balance as of December 31,
2023.

 

Highlights and Key Items:

 

·    Continued solid operational performance in Gabon, Egypt and Canada
drove production and sales volumes in Q4 2023;

·    Recorded full year 2023 sales volumes of 23,900 to 24,000 working
interest ("WI") barrels of oil equivalent per day ("BOEPD") at the top of its
guidance range of 23,050 to 24,000 WI BOEPD;

o Full year 2023 sales volumes were 18,700 to 18,800 net revenue interest
("NRI") BOEPD above the top end of the Company's guidance range of 17,900 to
18,500 NRI BOEPD;

·    Generated sales volumes of about 27,400 to 27,550 WI BOEPD in Q4 2023
or 21,725 to 22,125 NRI BOEPD;

·    Produced between 23,900 and 24,000 WI BOEPD for full year 2023, above
the midpoint of its full year guidance range of 23,450 to 24,400 WI BOEPD;

o Full year 2023 production volumes were 18,700 to 18,800 NRI BOEPD at the top
end of the Company's guidance range of 18,300 to 18,900 NRI BOEPD;

·    Delivered Q4 2023 production of 23,100 to 23,500 WI BOEPD or 17,900
to 18,200 NRI BOEPD; and

·    Grew cash and cash equivalents to over $120 million at December 31,
2023 after returning $12.5 million in dividends and share buybacks in Q4 2023.

 

 

George Maxwell, VAALCO's Chief Executive Officer commented, "We finished 2023
with solid production driven by our capital programs in Egypt and Canada and
the continued strong operational uptime in Gabon. In 2023, we raised our full
year production and sales guidance following excellent first half 2023 results
and our continued outstanding performance has allowed us to achieve the top
end of our sales guidance and our production was also above the midpoint of
the increased guidance range. Our high-quality asset base, combined with our
exceptional operational and financial teams, have helped us to deliver this
strong performance that exceeded expectations. We have grown our cash by more
than $80 million in 2023 and ended the year with over $120 million in cash.
VAALCO was able to accomplish this even after funding our capital program,
paying out $27 million in dividends and repurchasing $21 million of VAALCO
stock. We remain committed to maximizing shareholder value, generating
meaningful cash flow and growing our production and reserves across a larger,
diversified portfolio. We have entered 2024 with a clean balance sheet,
growing cash position and robust operational performance, underpinning
management's confidence in achieving our strategic objectives."

 

 

About VAALCO

 

VAALCO, founded in 1985 and incorporated under the laws of Delaware, is a
Houston, Texas, USA based, independent energy company with production,
development and exploration assets in Africa and Canada.

 

Following its business combination with TransGlobe Energy Corporation
("TransGlobe") in October 2022, VAALCO owns a diverse portfolio of operated
production, development and exploration assets across Gabon, Egypt, Equatorial
Guinea and Canada.

 

For Further Information

 VAALCO Energy, Inc. (General and Investor Enquiries)  +00 1 713 623 0801
 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 production and sales volumes and cash position as of, and for the quarter
ended, December 31, 2023; (ii) estimates of future drilling, production, sales
and costs of acquiring crude oil, natural gas and natural gas liquids; (iii)
expectations of future commodity prices; (iii) expectations on future capital
expenditures; and (iv) 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.
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 or TransGlobe; the ability to generate
cash flows that, along with cash on hand, will be sufficient to support
operations and cash requirements; the impact and costs of compliance with laws
and regulations governing oil and gas operations; the risks described under
the caption "Risk Factors" in VAALCO's 2022 Annual Report on Form 10-K filed
with the SEC on April 6, 2023.

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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