March 2016 Company Update NYSE:EGY VAALCO Energy, Inc. 1
VAALCO Overview Houston-based independent E&P Excellent reputation as a West Africa focused operator Operational capacity to take on new assets and projects Simple capital structure Key Metrics 41 million cash including…
VAALCO Vision Statement We are committed to opportunistic, acquisitive growth in a low oil price environment which: Achieves significant ROI and is accretive to EPS Leverages our G&A infrastructure, experienced management skillset,…
Proactive in a Challenging Environment Achieved significant cost reductions and targeting additional savings Reduced production expense, excluding workovers, per BOE of sales by 32% year over year Reduced Houston headcount by 40% over…
Strategic Alternatives VAALCO announced on January 26, 2016 that the Board of Directors had formed a Strategic Committee to explore a range of strategic alternatives to further enhance shareholder value Potential options include:…
Financial Performance and Position Maximizing cash by optimizing (s in millions) production and dramatically Cash Balance (including restricted cash)(1) 41 reducing costs and capex (Does not include 19 million received on 3/14/16)…
Net Base and Development Production Net BOE per day (2012 1Q2016E) 6,000 4,989 4,876 5,000 4,625 4,700 4,344 3,994 4,000 1,400 Development and 2,350 2,450 Workover Increment 3,000 4,989 4,344 2,000 3,994 3,225 2,526…
Offshore Gabon Net Liftings 2015 Lifting Average 420,000 2013 Lifting Average 390,000 2014 Lifting Average 340,000 360,000 380,000 (1) 2013 2014 2015 2016 Net Lifting Increase Driven By Development Drilling…
Year End 2015 Proved Reserves Year End 2015 Net Proved Reserves Net Proved Reserves 9.0 8.0 8.5 1.7 7.0 North SE Etame 6.0 Tchibala 0.41 2.7 Etame MMBO 5.0 0.30 4.0 1.14 1.4 0.3 3.0 US 2.0 3.0 Properties 1.0 0.19 0.0…
2015-2016 Production Cost Reductions & Targets Operational Efficiencies 2015 2016E Lifting support vessel reductions 2.0 million 2 - 3 million Helicopter and operations support vessel savings 1.5 million 2 - 3 million Material…
Net Production Expense Reductions Net Production Expense by Quarter (4Q2014 1Q2016E) 12.0 27.43 30.00 10.0 22.50 25.00 22.75 /BOE of sales 19.08 19.36 18.78 20.00 8.0 20.00 MM 6.0 15.00 10.1 7.5 - 8.5 8.9 8.7 8.5…
2015 2016 Personnel Cash Expense Reductions Staffing and Administrative Cash Cost Reductions 40% reduction in Houston corporate staff 2 million reduction 1.5 million reduction in incentive compensation 1 million reduction in…
Commendable Safety Record Total Recordable Incident Rate Performance at Year End 2015 Total Recordable Incident Rate (TRIR) of 0.48, 41% below prior year No environmental incidents Safety Performance During 2015 Four recordable…
Compelling Operational Performance Exceptional uptime Unplanned Downtime % VAALCO Uptime West Africa average (Ziff 2013) High uptime with decreasing lifting costs Operational Excellence Continually improving and evolving asset…
West Africa Focus 20,000 VAALCO Energy, Inc. 22
Offshore Gabon Etame Marin Permit FPSO Petroleo Nautipa Operator with a 28.1% net W.I. Long-term contract with Tinworth through 2020 Partners: Sinopec (Addax), Sasol, Sojitz , Capacity: 30,000 bbls of total fluids per day Capacity:…
Etame Field Recent Development Drilling 1-V Fault Block: Encouraging Results from the Lower Lobe of the Gamba Reservoir: Two 2015 development wells placed on production (Etame 10H & 12H) Both the Upper and Lower Lobes of the Gamba…
SE Etame & North Tchibala Recent Development Drilling SE Etame 2-H Online 2Q15 with initial rate of 3,400 BOPD gross (900 BOPD net), higher than forecast No formation water or H2S North Tchibala 1-H First Gabon offshore Dentale…
Workover Program in Avouma and South Tchibala Fields Three Well Workover Program to Replace ESPs Avouma and South Tchibala Fields South Tchibala 2-H workover successful Restored 1,700 BOPD gross (415 BOPD net) Well had been offline…
Etame Opportunities for Future Growth Potential Etame Block Outline Identified Opportunities Ebouri Production Ebouri Field Outline E. Ebouri Lead Etame Platform: Three Gamba and two AEE Expansion Area Dentale infills (15…
Dentale Formation Future Growth Potential Multiple Dentale reservoir units are present Etame Field throughout the block Main Fault Block Largely undeveloped sand-shale sequence North Tchibala Gross thickness of several hundred…
Etame Marin Resource Potential Asset Sour Discovered Undiscovered (28.1WI%) Resources Resources Resources Net MMBO 1.4 7 8 Multiple additional development locations identified in the Etame field complex: Mix of Gamba and Dentale…
Onshore Gabon & Equatorial Guinea Onshore Gabon, operated with 41% WI Equatorial Guinea with 41% WI 2012 discovery encountered 49 of oil pay 20+ million BOE gross EUR discovered Identifying alternative, lower cost development…
Offshore Angola Block 5 Identified Exploration Upside VAALCO operated 40% WI Sonangol P&P 40% WI 20% govt. carry Expanded lead/prospect inventory from new 3-D seismic reprocessing Top 4 prospects/leads: est. total gross…
Proven Track Record of Success 400% Growth in Estimated Ultimate Recovery Strong safety culture Over 90 MMBO recovered from Etame field to date, initial estimate 30 MMBO Successfully executed multiple development projects…
Looking to the Future Positioned for Acquisitive Growth in Current Low Price Environment Public company with ability to access capital markets Continuing significant cost reductions lowers breakeven and increases margins Experienced…
2016 Guidance (As of March 16, 2016) Production (BOEPD) 3,700 4,500* *1st Quarter Guidance 4,600 4,800 Production Expense(1) 27.5 - 32.5 MM* (18.00 - 21.00 per BOE) *1st Quarter Guidance 7.5 MM - 8.5 MM (20.00 - 22.75 per BOE)…
Non-GAAP Reconciliations Reconciliation of Net income (loss) to Adjusted EBITDAX Three Months Ended Year Ended December 31, December 31, September 30, December 31, December 31, 2015 2014 2015 2015 2014 Net income (loss) (80,779)…
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