VAALCO Energy, Inc. Announces Fourth Quarter and Full Year 2020 Results and Reserves Update

HOUSTON, March 09, 2021 (GLOBE NEWSWIRE) — VAALCO Energy, Inc. (NYSE/LSE: EGY) (“VAALCO” or the “Company”) today reported operational and financial results for the fourth quarter and full year of 2020.
Highlights and Recent Key Items:Closed the transformational acquisition of Sasol’s working interest in the Etame field;Nearly doubles VAALCO’s total net production and reserves;Estimated acquisition cost per NRI barrel⁽⁶⁾of $14.41 for SEC proved reserves and $4.91 for 2P CPR reserves;Produced 4,662 net revenue interest (“NRI”)⁽¹⁾barrels of crude oil per day (“BOPD”), or 5,359 working interest (“WI”)⁽²⁾BOPD in Q4 2020;Reported net loss of $3.6 million ($0.06 per diluted share), Adjusted Net Loss⁽³⁾of $5.6 million ($0.10 per diluted share) and generated Adjusted EBITDAX⁽³⁾of $3.5 million for Q4 2020;Q4 2020 revenues were reduced by approximately $7.8 million due to a delay in the December lifting to January 2021;Q4 2020 operating loss reflected $3.6 million of seismic related exploration expense;Completed the 2019/2020 drilling campaign with a 100% success rate, on time and within budget, with no safety or environmental incidents on April 9, 2020;Completed the acquisition of new three dimensional (“3-D”) seismic over the Etame field:Utilized to optimize and de-risk future drilling locations;Added 1.6 MMBO NRI proved SEC⁽⁴⁾reserves in 2020 from positive well performance and the SE Etame 4P discovery which were offset by 1.6 MMBO NRI due to negative pricing related revisions;Reported year-end 2020 independent 2P CPR⁽⁵⁾reserves of 10.4 MMBO WI;Maintained a strong balance sheet with no debt, a cash balance of $47.9 million, including $1.4 million in net joint venture owner advances as of December 31, 2020; andImproving outlook for oil pricing coupled with enhanced cash flow generation supports next Etame drilling campaign currently anticipated to start in late 2021/early 2022.