IPAA OGIS 2016 Conference New York April 11, 2016 NYSE:EGY VAALCO Energy, Inc. 1
VAALCO Overview Houstonbased 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…
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)…
Projected Cash Breakeven Analysis (1) (2) (2) Each 5/barrel improvement in oil price increases annualized cash flow by 5 7MM Operational…
Net Base and Development Production 4,700 Development and 2,450 Workover Increment 2,250 Base Production (1) Successful 2015 Drilling Program and Workovers Grew Production VAALCO Energy, Inc. (1) Midpoint of…
Year End 2015 Reserves 1P Proved Reserves 3.0 MMBOE, 94% Oil 2P Reserves 6.5 MMBOE, 94% Oil 75% of Reserve Reduction Due to Lower Prices Higher Prices/Lower Costs Increase Economic Life and Reserves May be Reclassed to…
20152016 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 Costs…
Net Production Expense Reductions Net Production Expense by Quarter (4Q 2014 1Q 2016E) 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…
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…
West Africa Focus 20,000 VAALCO Energy, Inc. 14
Offshore Gabon Etame Marin Permit FPSO Petroleo Nautipa Operator with a 28.1% net W.I. Longterm contract with Tinworth through 2020 Partners: Sinopec (Addax), Sasol, Sojitz , Capacity: 30,000 bbls of total fluids per day Capacity:…
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…
Onshore Gabon & Equatorial Guinea Onshore Gabon, operated with 41% WI Equatorial Guinea with 31% 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 3D seismic reprocessing Top 4 prospects/leads: est. total gross…
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…
Appendix VAALCO Energy, Inc. 20
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)…
Experienced & Energized Management Steve Guidry, Chief Executive Officer Began 33year career with Marathon Oil in 1980. Holds degree in Petroleum Engineering. Led Marathons Central Africa BU for five years, overseeing operations in…
Board of Directors Focused & Engaged Andrew Fawthrop, Chairman Joined in October 2014 37 years of broadbased international oil and gas experience Numerous leadership positions at Unocal & Chevron Previously Chairman and Managing…
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…
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…
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…
Etame Field Recent Development Drilling 1V 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 2H Online 2Q 2015 with initial rate of 3,400 BOPD gross (900 BOPD net), higher than forecast No formation water or H2S North Tchibala 1H 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 2H workover successful Restored 1,700 BOPD gross (415 BOPD net) Well had been offline…
Dentale Formation Future Growth Potential Multiple Dentale reservoir units are present Etame Field throughout the block Main Fault Block Largely undeveloped sandshale 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…
NonGAAP Reconciliations Reconciliation of Net income (loss) to 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) (98,338) (33,668)…
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