EGY - VAALCO Energy Inc. Provides Positive Additional Information Regarding Its Acquisition Of Svenska | Benzinga

HOUSTON, July 16, 2024 (GLOBE NEWSWIRE) -- VAALCO Energy, Inc. (NYSE:EGY, LSE: EGY)) ("VAALCO" or the "Company") today announces that it has filed a Form 8-K/A with the Securities and Exchange Commission ("SEC") that provides historical financial statements and additional reserves disclosures regarding its acquisition of Svenska Petroleum Exploration AB ("Svenska").

Key highlights:

• Updated SEC net proved reserves as of December 31, 2023 of 16.9 million barrels of oil equivalent ("MMBOE") (93% oil), significantly higher than previous 1P working interest ("WI") CPR reserves of 13.0 MMBOE (99% oil) as of October 1, 2023;
• Increased 2P WI CPR reserves as of December 31, 2023 to 22.5 MMBOE (93% oil) from 21.7 MMBOE (97% oil) estimate; and
• Significant further upside identified from contingent resources at the Baobab field with Best Estimate Working Interest Contingent Resources ("2C") of 20.4 MMBOE.
  

George Maxwell, VAALCO's Chief Executive Officer commented, "We are very pleased with the results of our third-party reserve engineer's calculation of proved reserves as of December 31, 2023 for Svenska that shows even greater reserves than we initially disclosed. This strategic and highly cost-effective acquisition strategically expands our West African focus area with a sizeable producing asset that has significant upside potential and considerable future development opportunities in Côte d'Ivoire, a well-established and investment-friendly country. This transaction was highly accretive on key metrics to our shareholder base and provides another strong asset to support future growth."

As previously disclosed, VAALCO closed the acquisition of Svenska on April 30, 2024. Svenska's primary asset is a 27.39% non-operated working interest in the deepwater producing Baobab field in Block CI-40, offshore Côte d'Ivoire in West Africa. The net purchase price of $40.2 million was fully funded by cash on hand with no issuance of debt or equity.

At the time of initial announcement of the acquisition, VAALCO disclosed that the transaction included estimated 1P WI CPR reserves, as of October 1, 2023, of 13.0 MMBOE (99% oil) and total 2P WI CPR reserves at October 1, 2023, of 21.7 million MMBOE (97% oil); VAALCO at that time did not have a calculation of SEC proved reserves as of December 31, 2023 but has since worked with its third-party reserves auditors to calculate its SEC proved reserves and related Standardized Measure of Discounted Future Net Cash Flows ("Standardized Measure") as of that date utilizing a flat SEC pricing assumption of $83.06 per barrel of oil.

In today's SEC filing, VAALCO reported that SEC net proved reserves as of December 31, 2023 totaled 16.9 MMBOE. The Standardized Measure of those reserves as of December 31, 2023 totaled $107.1 million. On a pro-forma basis, this results in VAALCO's year-end 2023 pro-forma SEC net proved reserves totaling 45.6 MMBOE, a 59% increase from its reported yearend 2023 SEC net proved reserves of 28.6 MMBOE. Utilizing the net cash purchase price of $40.2 million, VAALCO paid approximately $2.37 per net proved barrel of reserves.

2P WI CPR reserves for Svenska as of December 31, 2023 are estimated at 22.5 MMBOE compared with the previously disclosed 21.7 MMBOE as of October 1, 2023. The discounted value of the future cash flows from those reserves as of December 31, 2023 totaled $240.9 million. The pricing assumptions used in these CPR calculations was $79.79 per barrel of oil beginning in 2024, $69.79 in 2025, and inflating 2% thereafter. VAALCO notes that 2P reserves do not include significant upside from contingent resources at the Baobab field. Block CI-40 also includes the discovered but undeveloped Kossipo field, for which the Company will update the contingent resources with its third-party reserves auditors in due course.

About VAALCO

VAALCO, founded in 1985 and incorporated under the laws of Delaware, is a Houston, Texas, USA based, independent energy company with a diverse portfolio of production, development and exploration assets across Gabon, Egypt, Côte d'Ivoire, Equatorial Guinea and Canada.

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