REG - Vaalco Energy Inc - VAALCO SECURES RIG FOR 2025/26 DRILLING CAMPAIGN

VAALCO EnergyAnnouncement

11/12/2024 07:00

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RNS Number : 5911P  Vaalco Energy Inc  11 December 2024

 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION

 

VAALCO ENERGY, INC. SECURES RIG FOR 2025/2026 DRILLING CAMPAIGN

 

HOUSTON - December 11, 2024 - VAALCO Energy, Inc. (NYSE: EGY; LSE: EGY)
("Vaalco" or the "Company") today announced that, in conjunction with its
2025/2026 drilling program planned to begin mid-2025 in Gabon, it has executed
a contract with Borr Jack-Up XIV Inc., an affiliate of Borr Drilling Limited
("Borr"), to drill multiple development wells and appraisal/exploration wells,
as well as perform workovers, with options to drill additional wells.

 

George Maxwell, Vaalco's Chief Executive Officer commented, "We are excited
about the major projects planned for 2025 that are expected to deliver a
step-change in organic growth across our portfolio in the coming years. In
Gabon, we continue to work with our joint owners at Etame on our shared goal
of executing another successful drilling campaign designed to enhance
production and add reserves. We have signed a contract with Borr that we
believe allows us the flexibility to optimize our drilling and workover plans
offshore Gabon."

 

"We anticipate the program to begin in mid-2025 with the sequencing and exact
number of wells yet to be finalized. We are planning on multiple wells in the
Etame field, multiple wells at our SEENT platform and a redrill and several
workovers in the Ebouri field to access production and reserves that were
previously shut in and removed from proved reserves due to H(2)S. Over the
past three years, we have delivered on our focused strategy and believe we
will continue to do so with the organic growth programs across our diversified
portfolio over the coming years."

 

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, Cote
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
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.

 

Dividends beyond the fourth quarter of 2024 have not yet been approved or
declared by the Board of Directors for Vaalco. The declaration and payment of
future dividends remains at the discretion of the Board and will be determined
based on Vaalco's financial results, balance sheet strength, cash and
liquidity requirements, future prospects, crude oil and natural gas prices,
and other factors deemed relevant by the Board. The Board reserves all powers
related to the declaration and payment of dividends. Consequently, in
determining the dividend to be declared and paid on Vaalco common stock, the
Board may revise or terminate the payment level at any time without prior
notice.

 

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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