HOUSTON, June 24, 2020 (GLOBE NEWSWIRE) — VAALCO Energy, Inc. (NYSE: EGY; LSE: EGY) today provided the comments Cary Bounds, Chief Executive Officer will make during its upcoming 2020 Annual General Meeting that is being held at 9:00 am central time in Houston, Texas on Thursday, June 25, 2020.
“First and foremost I would like to take this moment to extend my thanks to all our staff, in particular our operations personnel, who have worked tirelessly to enable VAALCO to continue to operate effectively during this challenging time of uncertainty. The fact that our operations remain largely unaffected by recent global developments is testament to the commitment and professionalism of our team and further validates our status as a quality international operator.
This past year has been highly transformational for VAALCO. The success of our 2019/2020 drilling program, that was completed on-time and on-budget, is a clear indicator of the long-term opportunities at Etame and our continued ability to realise value from this asset through the drill-bit. This drilling campaign surpassed pre-drill expectations in terms of enhancing production and identifying new opportunities to pursue with future drilling campaigns. The programme increased our production to 4,944 net revenue interest barrels of crude oil per day in the first quarter of 2020, and despite the operational challenges caused by the global pandemic, our production guidance for the second quarter and full-year remains unchanged.
VAALCO’s transformation was further reflected in our successful dual-listing on the London Stock Exchange; a corporate move designed to provide a platform for long-term growth by diversifying the shareholder register and accessing a deeper pool of capital as required. Other key achievements during the year included a share buy-back, demonstrating the Board’s confidence in the value proposition and long-term outlook for the Company, and the publication of our inaugural Sustainability Report that showcases our commitment and adherence to the themes that comprise ESG investment.
The industry and global economies remain challenging and this is reflected in the volatility of crude prices through the current quarter. Financial discipline remains our key priority at present and VAALCO has successfully reduced costs through various measures to maximize profitability. To this end, our strong balance sheet with no debt, and a cash balance of $61.0 million as of 31 March 2020 (including $11.3 million of joint owner advances), ensures the Company is enviably placed to remain resilient during this volatile environment. Furthermore, VAALCO is well positioned to capitalise on opportunities presented by the sector backdrop and continues to consider opportunities consistent with our inorganic growth strategy. Importantly, following completion of the 2019/20 drilling campaign, the Company does not have any material capital expenditure requirements on the near-term horizon so we can focus on cash preservation and assess market conditions with regards to planning the next drilling campaign at Etame.
As noted at the beginning, our staff has been integral in ensuring our success over the past year, particularly in the way in which they ensured continuity of operations despite the pandemic, which has in turn enabled VAALCO to maintain full-year guidance. I also want to thank our employees, management and Board who have made compensation sacrifices as part of our efforts to reduce costs.
In summary, this has been a year that saw material operational and corporate achievements, and despite the challenging backdrop, VAALCO remains particularly well placed to deliver long-term growth for its shareholders by delivering its stated strategic objectives.”
VAALCO, founded in 1985, is a Houston, USA based, independent energy company with production, development and exploration assets in the West African region.
The Company is an established operator within the region, holding a 31.1% working interest in the Etame Marin Block, located offshore Gabon, which to date has produced over 116 million barrels of crude oil and of which the Company is the operator.
|For further information:|
|VAALCO Energy, Inc. (General and Investor Enquiries)||+00 1 713 623 0801|
|Cary Bounds, CEO / Elizabeth Prochnow, CFO|
|Buchanan (UK Financial PR)||+44 (0) 207 466 5000|
|Ben Romney / Kelsey Traynor / James Husband||[email protected]|
|Al Petrie Advisors (US Investor Relations)||+00 1 713 543 3422|
|Al Petrie / Chris Delange|
|Canaccord Genuity (Corporate Broker)||+44 (0) 207 523 8000|
|Henry Fitzgerald-O’Connor / James Asensio|