Get better picture Leveraging From A Strong Platform To Deliver Growth Investor Presentation September 2019 VAALCO Energy, Inc. NYSE: EGY
Corporate Overview VAALCO Energy, Inc. NYSE: EGY
Why VAALCO Now Leveraging From a Strong Platform to Deliver Growth Established operator with a proven track record in West Africa Strong management team with extensive industry experience Profitable free cash flow from low risk…
20+ Year Track Record Experienced Operator Entering an Ambitious Growth Phase International E&P focused on low-risk, producing assets in Africa Operator of Gabon offshore Etame license Produced 110 million gross barrels of oil to…
Management Team Deep Industry, Technical and Financial Experience Cary Bounds Chief Executive Officer and Director Joined VAALCO in 2015 as COO and was named CEO in December 2016. Mr. Bounds began his career at Conoco in 1991. Most…
Delivering Value Through Execution Turnaround Driven by Management Team New strategy adopted by management team in 2017 Delivered on objectives to position the Company for sustainable growth Initiated Vision 2025 to achieve material…
2019 Recent Highlights Removing Creating and Growing Cash Financial Returning Flow Uncertainty Value Finalized Angola exit settlement in Q1 removing all liabilities and outstanding obligations for Block 5 Finalized agreement…
Significant Near-Term Catalysts Meaningful Potential Production and Reserve Growth with Moderate Risk 2019/2020 Program 2019/2020 Program Potential Impact to 2020 Full Year Production Average Gross Reserves & Resource Potential…
Operational Outlook VAALCO Energy, Inc. NYSE: EGY
Etame Track Record of Success Repeatedly Creating Value Gamba reservoir plus deeper Dentale resource potential 30 MMBO initial gross proven EUR at YE 2002 110 MMBO gross barrels of oil produced 123 MMBO gross proven EUR at YE 2018…
Etame Complex A World Class Asset With Material Upside Potential Gross Reserves and Resources Producing Wells Undeveloped Reserves 110 MMBO produced 2019/20 Gamba to date Drilling: 13.4 MMBO(1) 10.4 MMBO proved 2P reserves(1) South…
Fully Funded 2019/20 Work Program Meaningful Growth with Moderate Risk 2019/20 Drilling Objectives Etame Field Development: Etame 9H and Etame 11H wells to be drilled near the top of the Gamba structure Etame Dentale Sub Crop: Etame 9P…
Additional Etame Opportunities Moderate Risk Growth E Ebouri South Tchibala Extension: South Tchibala 3H Gamba well and proves up a future development location Etame Ebouri Gamba Leads/Prospects: Five potential satellite…
Gamba Satellite Prospects High Upside Potential with Relatively Lower Risk Five potential satellite prospects identified (1) High upside potential prospective resources with relatively (2) low geological risk as assessed by…
Equatorial Guinea Significant Upside Potential Block P suspension lifted; awaiting approval of transfer Noble 210 MMboe of GEPetrols WI VAALCO will seek partner on a promoted basis to drill exploratory well required under terms to…
Financial Overview VAALCO Energy, Inc. NYSE: EGY
Financial Snapshot(1) Delivering Strong Cash Flow and Financial Results US 34.6 MM US 56.3 MM US 37.2 MM Adjusted Net Income Adjusted EBITDAX Cash from Operations 242% 81% 315% FY 2018 FY 2018 FY 2018 US25.04 US 104.9 MM 3,751…
Key Performance Metrics Profitable Results Build Financial Strength Production by Quarter 4,500 Adjusted EBITDAX 3rd party DT 20 4,000 200 BO/d 3,500 3,000 15 2,500 BOPD MM 2,000 4,120 10 3,717 3,496 3,664 17.1 1,500 16.0…
Working Capital From Continuing Operations Liquidity Position Continues to Improve 45.0 80.00 40.0 38.1 70.00 35.0 33.8 60.00 29.7 30.0 50.00 25.0 40.00 Millions per barrel 20.0 15.0 30.00 15.0 13.0 13.3 11.0…
Hedging Ensure Sufficient Cash Flow to Fund Future Drilling Campaigns May 2019: Swaps for 500,000 BBL at 66.70 dated Brent for the July 2019 to June 2020 period Volumes represent approximately one-third of net sales for the…
Share Repurchase Program Returning Value to Shareholders On June 20, 2019 the Board authorized a stock repurchase program VAALCO can repurchase up to 10 million of the currently outstanding shares of common stock The program period…
Vision 2025 Strategy VAALCO Energy, Inc. NYSE: EGY
Vision 2025 Roadmap to Transformational Growth Achieve material increase in scale 2019/20 Etame License Work Program as a premier Africa operator Maintain operational excellence, cost Future Etame License discipline and strong…
Inorganic Growth Achieving 5x Value Seeking to complement organic growth with value accretive M&A opportunities Strategic focus on producing assets in Africa Seeking merger candidates of similar size and corporate strategy…
Stakeholder Engagement VAALCO Energy, Inc. NYSE: EGY
Corporate Social Responsibility Partnering with the Communities Where We Operate Underpinning growth is maintaining our social license to operate Strong governmental relationships Technical, commercial and policy Builds ease of access…
HSE and Governance Our Commitment to Society Total Recordable Incident Rate - Rolling 12 Months Health and safety record over 1.1 million hours with no recordable incident through June 2019 Strong government relationship and 2018…
Appendix VAALCO Energy, Inc. NYSE: EGY
2019 Full Year Guidance (As of August 8, 2019) WI(1) NRI(1) Production (BOPD) 3,800 4,500 3,300 3,900 Q3 2019 Production (BOPD) 3,450 3,800 3,000 3,300 Sales Volume (BOPD) 3,900 4,350 3,400 3,800 Production Expense(2) 36 - 42 MM 36…
Additional Etame Technical Detail VAALCO Energy, Inc. NYSE: EGY
VAALCO Offshore Gabon Etame Reservoirs Located in prolific South Gabon basin in shallow water (85m) Numerous undrilled opportunities at moderate drilling depths (1800m TVD to 2900m TVD) Continuous overlying salt sheet provides an…
VAALCO Etame Offshore License Operator with 31.1% WI and 27.1% NRI (net of royalty) Joint Owners: Sinopec (Addax), Sasol, PetroEnergy Current producing wells: 10.4 MMBO of proved and 7.7 MMBO probable gross developed reserves at YE…
2019/20 Work Program Creating Value through Development Drilling 2019 Development Drilling Locations Etame 9H well: Gamba horizontal between the two highest gross producing wells in Etame Marin Etame 11H well: Gamba horizontal well to…
2019/20 Drilling Program: Etame Field Main Fault Block Gamba Development The Etame-9H is a horizontal development well offsetting the Etame-4H and Etame-6H Reserve potential: 6.2 MMBO gross 2P (1) 1.7 MMBO NRI 2P(1) Estimated…
2019/20 Drilling Program: Etame Field Main Fault Block Gamba Development The Etame-11H is a horizontal development well to optimize production in the east side of the main fault block Reserve potential: 7.2 MMBO gross 2P(1) 2.0…
Fully Funded 2019/20 Work Program Creating Value through Appraisal Drilling 2019 Appraisal Locations Etame 9P: Dentale appraisal well bore, if successful proves 3 locations, converting 4.6MMBO prospective resources at 12/31/2018 to…
2019/20 Drilling Program: Etame Field Main Fault Sub Crop Dentale Appraisal Etame 9P appraisal well bore evaluates the A B sub crop Dentale potential Dentale sands beneath the Gamba reservoir at the Etame field These sands have been…
2019/20 Drilling Program: SE Etame Fault Compartment/Step Out Area SE Etame 4P appraisal well bore will evaluate the Step Out area, interpreted as an extension from the SE Etame 2H The SE Etame 4H will be drilled into the Step Out…
Additional Etame Dentale Opportunities Additional Prospective Locations: Etame Platform: Six Dentale infills (10.2 MMBO gross)(1) SEENT Platform: Three Dentale infills (4.5 MMBO gross)(1) Avouma Platform: Two Dentale infills…
Crude Sweetening Project (CSP) 3 wells drilled and shut in due to H2S in Ebouri and Etame fields Ebouri 3H and Ebouri 4H existing wells, Ebouri 5H potential future well: 5.3 MMBO gross contingent resource(1) Initial tests of 800…
Material Upside Converting Contingent and Prospective to 2P 140 10 FUTURE GROSS RECOVERY 120 22 31 BY CLASS (MMBO) 43 100 62 35 34 80 31 30 60 26 75 40 58 64 47 20 32 0 CURRENT AFTER DRILLING AFTER PHASE 2…
Profitable Production Growth Well-Defined and Repeatable Organic Growth Unrisked Production Profile Gross (BOPD) 35,000 30,000 Current FPSO oil capacity 25,000 BOPD 25,000 20,000 Prospective 15,000 2C Resources 10,000…
Vision 2025 Building Blocks to Achieve Growth 2019/20 Etame License Work Program Future Etame License Work Programs One Dentale appraisal wellbore to evaluate Five Gamba development wells sub crop reservoirs Five Gamba near field…
Non-GAAP Reconciliations Three Months Ended Reconciliation of Net Income (Loss) to Adjusted Net Income June 30, 2019 June 30, 2018 March 31, 2019 Net income (loss) (1,033) 544 6,501 Adjustment for discrete items: Discontinued…
Contact Corporate Office Branch Office 9800 Richmond Avenue, VAALCO Gabon SA Suite 700, Houston, Texas 77042 B.P. 1335, Port Gentil, Gabon T 713.623.0801 F 713.623.0982 E vaalcovaalco.com T +241-(0)1-56-55-29 Investor…
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