Vaalco Energy Inc - EGY STOCK NEWS

VAALCO Energy (NYSE: EGY) announced the execution of a drilling contract with Borr Jack-Up XIV Inc. to drill two development and two appraisal wells in its 2021/2022 drilling program, anticipated to start in December 2021. Successful drilling could increase production by 7,000 to 8,000 barrels per day and add up to 10.2 million barrels of oil in reserves. The company expects its capital commitments to be fully funded through cash flow and hedging initiatives, aiming to enhance shareholder returns while pursuing strategic growth objectives.

VAALCO Energy (NYSE: EGY) held its Annual General Meeting on June 3, 2021, unveiling its strategy for growth and shareholder returns. The company plans to enhance output by 7,000-8,000 gross barrels of oil per day through a drilling program in Gabon. Cost reduction strategies include replacing the existing FPSO with an FSO, potentially slashing operational costs by up to 25%. VAALCO aims to capitalize on opportunities in Equatorial Guinea and maintain a strong financial position through hedging, ensuring funding for its capital commitments over the next 12 months.

VAALCO Energy reported a Q1 2021 net income of $9.9 million ($0.17 per diluted share), significantly recovering from a $3.6 million loss in Q4 2020. The company generated an Adjusted EBITDAX of $18.0 million, driven by a 113% increase in oil sales to 619,000 barrels. The completion of the Sasol Acquisition nearly doubled production and reserves. In addition, VAALCO signed a non-binding LOI for a Floating Storage and Offloading unit that could reduce operating costs by 15% to 25%. The company maintains a strong balance sheet with $19.3 million cash and no debt.

VAALCO Energy (NYSE: EGY) announced crude oil commodity swap agreements for 672,533 barrels at an average price of $66.51 per barrel for May to October 2021. The company has hedged 70% of its production through October 2021 at an average price of $62.27 per barrel, enhancing cash flow stability for funding its drilling program and potential capital upgrades. CEO George Maxwell emphasized the securing of strong Free Cash Flow while allowing for potential benefits from rising oil prices, as not all production is hedged.

VAALCO Energy, Inc. (NYSE: EGY) announced the release date for its first quarter 2021 earnings report, set for May 12 after market close. A conference call will follow on May 13 at 9:00 a.m. CT. Participants can join via toll-free numbers or through a webcast on VAALCO's website. The company, based in Houston, operates in West Africa and owns a 58.8% working interest in the Etame Marin Block offshore Gabon, which has produced over 120 million barrels of crude oil.

VAALCO Energy has signed a non-binding letter of intent with Omni Offshore Terminals to operate a Floating Storage and Offloading unit at its Etame Marin field in Gabon for up to 11 years. This could reduce operating costs by 15% to 25% compared to the current FPSO contract. A planned capital investment of $40-$50 million gross is expected, with a payback period of under three years. The transition aligns with VAALCO's strategy to improve efficiencies and maintain production growth.

VAALCO Energy (EGY) has appointed George Maxwell as its new CEO effective April 12, 2021. Maxwell, who joined the board in June 2020, succeeds Cary Bounds, who led the company since 2016. Under Maxwell, VAALCO aims to enhance its operational focus in West Africa and improve shareholder returns through strategic growth. The company plans to strengthen its presence in London, a key financial hub for African energy, by opening a new office and appointing a Chief Financial Officer. Maxwell emphasizes sustainable growth and potential shareholder programs, including share repurchases and dividends.

VAALCO Energy (NYSE: EGY) announced the retirement of its Chief Financial Officer, Elizabeth Prochnow, effective March 31, 2021. Her departure is unrelated to any financial or management issues. Prochnow, who joined VAALCO in 2015, played a key role in the company’s financial transformation and recent acquisition of additional interest in the Etame block. Following her retirement, Jason J. Doornik will serve as the principal financial officer until a successor is found. VAALCO continues its operations in the West African energy sector, holding a 63.6% interest in the Etame Marin block.

VAALCO Energy (NYSE: EGY) announced participation in the Virtual 33rd Annual ROTH Conference from March 15-17, 2021. CEO Cary Bounds and CFO Elizabeth Prochnow will hold virtual one-on-one meetings with investors on March 15. A pre-recorded presentation by Bounds and an updated investor slide deck will be available on VAALCO's website the same day. VAALCO, established in 1985, operates primarily in West Africa, holding a 63.6% interest in the Etame Marin block offshore Gabon, which has produced over 120 million barrels of crude oil.