Vaalco Energy Inc. Provides Update on Operations Offshore Gabon
Oct 12 15
Vaalco Energy Inc. announced a re-sequencing update to its drilling and workover program offshore Gabon in the Etame Marin block. The strong results from the initial North Tchibala field development well, the company planned to mobilize the Transocean Constellation II jackup rig to the Avouma/South Tchibala field to conduct workover operations to replace electrical submersible pumps on three existing development wells, two of which are currently off production. The North Tchibala 1-H well, the first well drilled by the company to the Dentale formation, continues to produce at a rate of approximately 3,000 gross barrels of oil per day (approximately 750 barrels per day net revenue interest to the company) without artificial lift. Subsequent to completion of the well, adverse sea state conditions at the location of the SEENT Platform prevented the company from moving the rig to the Avouma/South Tchibala Platform. Rather than wait for a change in sea state conditions and incur the expense of idle /standby rig time, and coupled with the continued strong performance of the first Gabon offshore Dentale development well, the company and its partners jointly agreed to re-sequence the drilling and workover program and proceed with the drilling and completion of the North Tchibala 2-H well, designed to develop oil production from the deeper Dentale D18-19 formation. Drilling operations are currently proceeding on time and on budget with the expectation that the well will be drilled to a depth of approximately 16,000 feet and will be finalized in November. Following finalization of the current operation, and on the assumption of satisfactory sea state conditions, the rig will be mobilized to the Avouma/South Tchibala Platform to conduct the aforementioned workover operations. Historic weather patterns suggest that conditions will be improving in the timeframe in which the rig will next require mobilization. Additionally, the annual five-day shutdown of the Etame Marin block to allow the owner of the FPSO to perform maintenance operations that would have occurred this fall has been postponed until the first quarter of 2016.
Vaalco Energy Inc. Announces Earnings Results for the Second Quarter of 2015; Revised production guidance for the year 2015
Sep 10 15
Vaalco Energy Inc. announced earnings results for the second quarter of 2015. The company reported oil and gas sales of $27.1 million, versus $52.1 million reported a year ago. During the quarter, net loss was $5.2 million or $0.09 loss per diluted share, which includes a $5.8 million non-cash impairment charge primarily due to lower projected oil prices and additional development costs. The company reported net income of $24.7 million, or $0.43 per diluted share a year ago. Adjusted net income was $0.6 million or $0.01 per diluted share.
The company anticipated continued production growth through 2015 from the development drilling and workover program, which is why the company is raising full year 2015 production guidance range to 4,100 BOEPD to 4,600 BOEPD.
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.