Vaalco Energy Inc. Reports Unaudited Consolidated Earnings and Operating Results for the Second Quarter Ended June 30, 2015; Reports Impairment for the First Quarter Ended June 30, 2015; Provides Capital Expenditures and Operating Guidance for the Full Year of 2015
Aug 6 15
Vaalco Energy Inc. reported unaudited consolidated earnings and operating results for the second quarter ended June 30, 2015. Total oil and gas sales for the second quarter of 2015 were $27.1 million, compared to $52.1 million for the same period in 2014, and $18.2 million in the first quarter of 2015. Second quarter 2015 benefited from higher sales volumes and higher oil price realizations compared with the first quarter of 2015. For the second quarter of 2015, the company’s reported net loss was $5.2 million, or a loss of $0.09 per share. This includes a $5.8 million non-cash impairment charge primarily due to lower projected oil prices and additional development costs as described below. Excluding this charge, the company reported adjusted net income of $0.6 million, or $0.01 per diluted share. The benefit of increased production in the second quarter from the Company's Etame field following the successful drilling of two development wells this year from its new Etame platform was more than offset by lower crude oil prices. In the second quarter of 2014, the company reported net income of $24.7 million, or $0.43 per diluted share and adjusted net income of $23.75 million. Second quarter 2015 adjusted EBITDAX totaled $16.3 million. Adjusted EBITDAX excludes non-cash and other non-recurring items. The company reported adjusted EBITDAX of $43.7 million a year ago. Operating loss was $1,030,000 compared to operating income of $33,828,000 a year ago. Loss before income taxes was $931,000 compared to income before income taxes of $33,720,000 a year ago. Net cash provided by operating activities was $27,555,000 compared to $64,102,000 a year ago. Property and equipment expenditures were $13,127,000 compared to $26,541,000 a year ago.
The company provided operating results for the second quarter ended June 30, 2015. In the second quarter of 2015, the company completed drilling the Etame 12-H development well offshore Gabon from the new Etame platform that was installed in late 2014. The well was brought on production in April 2015 at an initial rate of approximately 2,000 BOPD gross (approximately 550 NWI). This well, along with the Etame 10-H well drilled in the first quarter of 2015, confirmed the presence of an un-drained lower lobe of the Gamba reservoir in this fault block, which the company has estimated to contain approximately 25 million gross Bbls of oil in place. Crude oil revenues for the three months ended June 30, 2015 were $27.0 million, as compared to revenues of $51.6 million for the same period in 2014, and $18.1 million in the first quarter of 2015. During the second quarter of 2015, VAALCO sold approximately 455,000 net Bbls at an average price of $59.16 per Bbl in Gabon compared to 477,000 net Bbls at an average price of $108.24 per Bbl in the second quarter of 2014, and 372,000 net Bbls at an average price of $48.66 per Bbl in the first quarter of 2015. Sales volumes (liftings) in the second quarter of 2015 exceeded production volumes due to oil that remained in the FPSO at March 31, 2015 that was sold in the second quarter. Natural gas revenues (including revenues from natural gas liquids) for the three months ended June 30, 2015 were $0.1 million compared to $0.3 million for the comparable period in 2014, and $0.1 million in the first quarter of 2015. Natural gas sales were approximately 46 million cubic feet (MMcf) at an average price of $2.70 per thousand cubic feet (Mcf) including natural gas liquids for the three months ended June 30, 2015. For the same period of 2014, natural gas sales were approximately 56 MMcf at an average price of $5.61 per Mcf including natural gas liquids. In the first quarter of 2015, natural gas sales were approximately 46 MMcf at an average price of $2.82 per Mcf including natural gas liquids.
The company provided capital expenditures and operating guidance for the full year of 2015. The company anticipates continued production growth through 2015 from the company's development drilling and workover program, which is why the company is raising its full year production guidance range to 4,100 BOEPD to 4,600 BOEPD. The company's full year 2015 capital expenditures are expected to be in the range of $70 million to $80 million.
The company reported impairment for the first quarter ended June 30, 2015. Impairment of proved properties was $5,821,000.
VAALCO Energy, Inc. Appoints Steven Pully as New Director
Aug 3 15
VAALCO Energy Inc. announced the appointment of Steven J. Pully to the company's Board of Directors, effective July 31, 2015. Mr. Pully will stand for re-election at the company's 2016 Annual Meeting of Shareholders. Mr. Pully has over 25 years of experience in capital markets, finance, investing and legal matters. He also has extensive Board participation and leadership experience, having served in a variety of roles on twelve boards, including EPL Oil & Gas Inc., where he was the lead independent director at the time of that company's sale. Mr. Pully is currently on the board of Bellatrix Exploration. Mr. Pully served as General Counsel and Partner at Carlson Capital, L.P.
VAALCO Energy, Inc. Announces Strong Production Results From Southeast Etame Development Well
Jul 20 15
VAALCO Energy Inc. announced that the Southeast Etame 2-H well, the first development well drilled in the Southeast Etame Field, was brought online at the rate of approximately 3,400 barrels of oil per day (approximately 850 barrels per day net to VAALCO). The well was drilled to a measured depth of approximately 14,012 feet, targeting a new reservoir that was discovered by an exploration well drilled by VAALCO in 2010. It is producing from the Gamba formation which is the source of all other VAALCO production in the Etame Marin permit area but the first production from this new, previously- unproduced field. The Etame 2-H well is not producing any formation water or hydrogen sulfide (H2S), has a flowing tubing pressure of 1,080 PSI, and is producing at the lowest setting on the ESP (electrical submersible pump). The combination of reservoir pressure that is at original conditions, productivity equivalent to or greater than other nearby Gamba development wells and the low setting being utilized on the ESP confirm the strength of this well. VAALCO plans to continue to produce the well at the current rate to monitor wellhead and downhole pressure and to optimize fluid throughput at the recently commissioned production facilities on the platform. This is the first well drilled and placed on production at VAALCO's new Southeast Etame/North Tchibala (SEENT) platform that is located in approximately 260 feet of water offshore Gabon. VAALCO is the operator of the Etame Marin permit area and owns a 28.1% working interest. The Transocean Constellation II jackup rig has been moved to a second slot on the same platform to drill the North Tchibala 1-H well that is targeting the Dentale formation in another previously-unproduced field (North Tchibala), that was discovered and delineated by prior wells but has not been placed on production.