August 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 30 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 Maintained positive downward momentum with production expense, excluding workovers, of 18.16 per BOE Targeting 2016 annual…
Financial Performance and Position Maximizing cash by optimizing Second Quarter 2016 (s in millions) production and reducing costs and Cash Balance (including restricted cash)(1) 30 capex Current Debt(2) 14 Straightforward balance…
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 3Q 2016) 6,000 4,989 4,796 5,000 4,625 4,516 4,344 3,994 3,850 4,000 1,400 2,500 2,400 3,000 2,000 Development and Workover Increment 4,989 2,000 4,344 3,994…
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 3Q 2016E) 12.0 27.43 30.00 10.0 22.50 25.00 22.00 /BOE of sales 19.08 19.36 8.0 18.78 18.16 18.16 20.00 MM 6.0 15.00 10.1 8.5 8.9 8.7 4.0…
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 (1) 19,500 VAALCO Energy, Inc. (1) Gross Production for 2Q2016 12
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 multiple sources of capital Maintaining focus on cost reductions, lowering breakeven price and increases…
Appendix VAALCO Energy, Inc. 18
2016 Guidance (As of August 9, 2016) Production (BOEPD) 3,900 4,300* *3rd Quarter Guidance 3,700 4,000 Production Expense(1) 27.5 - 32.5 MM* (18.00 - 21.00 per BOE) *3rd Quarter Guidance (21.00 - 23.00 per BOE) Workovers 6.5 -…
Proven Track Record of Success 400% Growth in Estimated Ultimate Recovery Strong safety culture Over 93 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) 600,000 500,000 2016 Lifting 2015 Lifting Average 420,000 Average 410,000 2013 Lifting Average 390,000 400,000 2014 Lifting Average 340,000 300,000…
Commendable Safety Record Total Recordable Incident Rate Performance at Year End 2015 1 Total Recordable Incident Rate (TRIR) 0.9 of 0.48, 41% below prior year Safety Performance During 2015 0.8 Four recordable incidents in 1H 2015…
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…
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 (31.1WI%) 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 loss to Adjusted EBITDAX Three Months Ended June 30, 2016 June 30, 2015 March 31, 2016 Net loss (261) (5,204) (8,063) Add back: Interest (income) expense, net 1,470 339 (2,713) Income…
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