Vaalco Energy Inc Stock Price, News & Analysis

VAALCO Energy Inc. (NYSE: EGY) successfully drilled the Avouma 3H-ST development well in the Etame field offshore Gabon. The well features a lateral of 268 meters and encounters premium Gamba sands with 28% porosity and one millidarcy permeability. This drilling confirms the extension of the Avouma reservoir, forecasted to increase overall recovery and potentially allow for additional wells. Initial production is expected soon, and VAALCO will continue its drilling program with the next well, ETBSM-1HB ST2, following the completion of Avouma 3H-ST.

VAALCO Energy (NYSE: EGY) has contracted DOF Subsea for subsea construction at the Etame field offshore Gabon, focusing on replacing the FPSO with a Floating Storage and Offloading (FSO) vessel. This strategic shift is aimed at enhancing operational efficiency and cost-effectiveness, with significant savings projected. The FSO conversion is expected to increase effective storage capacity by over 50% and reduce costs nearly 50%. The total capital costs for the project are estimated to be between $40 million and $50 million gross, with annual operational cost savings of $20 million to $25 million gross through 2030.

VAALCO Energy Inc. (NYSE: EGY) will participate in the 34th Annual Roth Conference from March 13-15, 2022, in Dana Point, California. CEO George Maxwell and CFO Ron Bain will hold in-person meetings with investors during the event. A related slide deck will be available on VAALCO's website in the 'Investor Relations' section on March 14, 2022. VAALCO is an independent energy company with operations primarily in West Africa, notably holding a 63.6% interest in the Etame Marin block offshore Gabon, which has produced over 125 million barrels of crude oil.

VAALCO Energy reported a strong fourth quarter of 2021 with a net income of $34.4 million ($0.58/share), benefiting from solid sales and a $16.1 million non-cash tax benefit. Full-year net income reached $81.8 million ($1.37/share). Production averaged 7,554 NRI BOPD in Q4, with sales of 709,000 barrels of oil. The company increased its reserves significantly by 250% to 11.2 MMBO. A quarterly dividend of $0.0325 per share was approved, and guidance for 2022 projects stronger production rates. VAALCO maintains a robust cash balance of $48.7 million.

VAALCO Energy Inc. (NYSE: EGY) reported a significant increase in year-end 2021 SEC proved reserves, reaching 11.2 million barrels of oil (MMBO), a 250% rise from 3.2 MMBO in 2020. This growth was driven by 5.0 MMBO from positive revisions in well performance, 3.0 MMBO from improved oil prices, and 2.6 MMBO from the acquisition of Sasol's interest at Etame. The company replaced over 400% of its production for the year. The firm will release its Q4 and full year 2021 earnings on March 9.

VAALCO Energy Inc. (NYSE: EGY) provided an update on the Etame field reconfiguration and the replacement of the FPSO with a new FSO offshore Gabon. The project is on schedule, with field reconfiguration starting in March 2022 and the FSO expected to be operational by September 2022. The new FSO is projected to reduce storage and offloading costs by almost 50% and increase storage capacity by over 50%. Total capital investment is estimated at $40-$50 million gross, with anticipated operational savings of $20-$25 million per year through 2030.

VAALCO Energy announced the successful completion of the Etame 8H-ST development well in Gabon, achieving an initial flow rate of approximately 5,000 BOPD. This marks the commencement of their 2021/2022 drilling campaign. The company reported Q4 2021 production at 7,550 BOPD NRI and full-year production of 7,120 BOPD NRI, both exceeding expectations. Q4 revenue is estimated at $57 million, with an unrestricted cash balance of approximately $48.7 million as of December 31, 2021. VAALCO plans to drill the Avouma 3H-ST1 well next and will release full 2022 guidance in early March.

VAALCO Energy, Inc. (NYSE: EGY) has appointed Fabrice Nze-Bekale as an independent director, effective immediately. He will contribute to the Audit, Compensation, Strategic, and Nominating and Corporate Governance Committees. Nze-Bekale brings over 25 years of experience in mining, banking, and international finance, and has strong connections in Gabon and the UK. Meanwhile, Bradley Radoff has resigned from the Board effective January 28, 2022. The Company anticipates that Nze-Bekale's insights will enhance its strategic objectives, particularly in Gabon and Equatorial Guinea, boosting shareholder value.

VAALCO Energy has declared its inaugural quarterly cash dividend of $0.0325 per share for Q1 2022, amounting to $0.13 on an annualized basis. This dividend will be payable on March 18, 2022 to shareholders on record as of February 18, 2022. CEO George Maxwell emphasized the company's commitment to shareholder returns and the strength of its balance sheet, highlighting future growth opportunities in offshore Gabon and Equatorial Guinea.