May 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…
Proactive in a Challenging Environment Achieved significant cost reductions and targeting additional savings Reduced production expense, excluding workovers, per BOE of sales by 25% 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 First Quarter 2016 (s in millions) production and dramatically Cash Balance (including restricted cash)(1) 41 reducing costs and capex Current Borrowings(2) 15…
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 Net BOE per day (2012 2Q 2016) 6,000 4,989 5,000 4,625 4,516 4,500 4,344 3,994 4,000 1,400 Development and 2,400 2,300 Workover Increment 3,000 4,989 2,000 4,344 3,994 3,225 1,000…
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 (4Q 2014 1Q 2016) 12.0 27.43 30.00 /BOE of sales 10.0 22.50 25.00 19.08 19.36 8.0 18.78 20.00 16.95 MM 6.0 15.00 10.1 4.0 8.5 8.9 8.7 10.00 7.9…
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 19,500 VAALCO Energy, Inc. 13
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 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 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 unrisked mean…
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 May 6, 2016) Production (BOEPD) 3,700 4,500* *2nd Quarter Guidance 4,300 4,700 Production Expense(1) 27.5 - 32.5 MM* (18.00 - 21.00 per BOE) *2nd Quarter Guidance (17.00 - 20.00 per BOE) Workovers 4.0 MM*…
Experienced & Energized Management Steve Guidry, Chief Executive Officer Began 33-year 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 broad-based 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 92 MMBO recovered from Etame field to date, initial estimate 30 MMBO Successfully executed multiple development projects…
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…
Offshore Gabon Net Liftings Net Gabon Liftings by Quarter (barrels) 600,000 2015 Lifting Average 420,000 500,000 2013 Lifting Average 390,000 2014 Lifting Average 340,000 381,000 400,000 300,000 200,000 100,000…
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…
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 2Q 2015 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…
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…
Non-GAAP Reconciliations Reconciliation of Net income (loss) to Adjusted EBITDAX Three Months Ended March 31, 2016 March 31, 2015 December 31, 2015 Net income (loss) (8,063) (39,005) (80,779) Add back: Interest (income) expense,…
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