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Corporate Update December 2020 – Vaalco Energy Inc.

Vaalco Energy Inc. · Dec 1, 2020 · 56 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. Corporate Update December 2020 – Vaalco Energy Inc. – slide 1
    Unlocking Substantial Value in West Africa December 2020 Company Update VAALCO Energy, Inc. NYSE: EGY LSE: EGY
  2. Corporate Update December 2020 – Vaalco Energy Inc. – slide 2
    Sasol Acquisition Overview VAALCO Energy, Inc. NYSE: EGY LSE: EGY
  3. Corporate Update December 2020 – Vaalco Energy Inc. – slide 3
    Acquisition Highlights Immediately Accretive to VAALCO Acquiring an additional 27.8% WI in the VAALCO operated Etame Marin block offshore Gabon, increasing VAALCOs total WI to 58.8% Nearly doubles VAALCOs total net production and…
  4. Corporate Update December 2020 – Vaalco Energy Inc. – slide 4
    Acquisition Terms Expected to Close Within 90 Days from Nov 17th Announcement Date Total consideration to Sasol for the entire transaction of 44 million, subject to customary post-effective date adjustments, and future contingent…
  5. Corporate Update December 2020 – Vaalco Energy Inc. – slide 5
    Step Change in Total NRI Production and Reserves Nearly Doubles Size and Scale 2019 YE PROVED SEC RESERVES(1) (MBBLS) YTD Sept 2020 NRI Production 10,000 Sasol Interest VAALCO 4,437 4,996 7,500 Combined 9,433 BOPD 5,000…
  6. Corporate Update December 2020 – Vaalco Energy Inc. – slide 6
    VAALCO Free Cash Flow Overview (2020E) Acquisition Increases Free Cash Flow per Barrel 2020 Free Cash Flow Per Barrel 45 Realized Oil Price 2020 Free Cash Flow Per Barrel 55 Realized Oil Price Each 5/barrel improvement 50.00 60.00 in…
  7. Corporate Update December 2020 – Vaalco Energy Inc. – slide 7
    Block DE-8 Offshore Gabon Diversifying and Adding to the Portfolio DE-8 Overview 180 miles NW of Etame VAALCO is acquiring a 40% non-operated Water depth 0 - 100 meters (block straddles Gabon shoreline) participating interest(1) in…
  8. Corporate Update December 2020 – Vaalco Energy Inc. – slide 8
    Near-Term and Long-Term Catalysts Acquisition Enhances Upside Potential Etame Seismic & Future Drilling Block DE-8 Equatorial Guinea Block P New proprietary 3-D seismic data Adds upside optionality Future potential with PSC license…
  9. Corporate Update December 2020 – Vaalco Energy Inc. – slide 9
    Sasol Acquisition Is Ideal Growth Transaction Value Accretive and Consistent with Growth Strategy Nearly Doubles VAALCOs Total Net Production and Reserves Estimated to Increase VAALCOs Free Cash Flow Per Barrel by 2.40…
  10. Corporate Update December 2020 – Vaalco Energy Inc. – slide 10
    Corporate Overview VAALCO Energy, Inc. NYSE: EGY LSE: EGY
  11. Corporate Update December 2020 – Vaalco Energy Inc. – slide 11
    Transformational & Strategic Transaction Increases Size and Scale(1) (Highlighted below) International E&P focused on low-risk, producing assets in West Africa Operator of Gabon offshore Etame license Etame Joint Owners…
  12. Corporate Update December 2020 – Vaalco Energy Inc. – slide 12
    Q3 and Recent Highlights Continued Strong Performance Achieved strong production performance of 4,405 NRI(1) BOPD, or 5,064 WI(2) BOPD in Q3 2020, despite planned full field maintenance shutdown in September and production…
  13. Corporate Update December 2020 – Vaalco Energy Inc. – slide 13
    Response to COVID-19 & Current Pricing Environment Instituted Measures to Ensure Safety and Health of all Employees and Contractors Response to COVID-19 Put into place social distancing measures at our work sites Actively screening…
  14. Corporate Update December 2020 – Vaalco Energy Inc. – slide 14
    2019/2020 Highlights Gaining Momentum Towards Strategic Objectives Completed the 2019/2020 drilling campaign in March with a 100% success rate, on time and within budget and released the Vantage Drilling jackup drilling rig on April 9,…
  15. Corporate Update December 2020 – Vaalco Energy Inc. – slide 15
    Meaningful Production Growth Positive Impacts from 2019/2020 Drilling Program Etame 9H well online in Q419 above pre-drill expectations Does not include impact of the pending Sasol Acquisition which is expected to close in early…
  16. Corporate Update December 2020 – Vaalco Energy Inc. – slide 16
    Etame 3-D Seismic Acquisition Optimizing and De-Risking Future Drilling Locations Expected to optimize future drilling locations, provide better imaging of existing satellite and infill locations, as well as identify additional…
  17. Corporate Update December 2020 – Vaalco Energy Inc. – slide 17
    Operational Outlook VAALCO Energy, Inc. NYSE: EGY LSE: EGY
  18. Corporate Update December 2020 – Vaalco Energy Inc. – slide 18
    Etame Track Record of Success Repeatable Ability to Create Value 140 Etame Marin : Gross Proven EUR Gamba reservoir plus deeper Dentale resource potential 120 30 MMBO initial gross proven EUR at YE 2002 1P Reserves (MMBO) 100…
  19. Corporate Update December 2020 – Vaalco Energy Inc. – slide 19
    Fully Funded 2019/20 Work Program Successful and Transformational Results Reserves / Resources IP Rate Gross MMBO NRI MMBO Gross NRI (1) (2) 2P Contingent Prospective Total Total BOPD BOPD Etame 9P Appraisal Wellbore (1,2) - 3.2…
  20. Corporate Update December 2020 – Vaalco Energy Inc. – slide 20
    2019/20 Drilling Program: Etame 9P Etame Field Main Fault Sub Crop Dentale Appraisal Etame 9P appraisal wellbore successfully drilled and A B encountered Gamba and Dentale reservoirs Gamba and Dentale oil columns thicker than…
  21. Corporate Update December 2020 – Vaalco Energy Inc. – slide 21
    2019/20 Drilling Program: Etame 9H Etame Field Main Fault Block Gamba Development Horizontal development well offsetting the Etame 4H and Etame 6H ET-4H Successfully drilled and brought online in December 2019 ETAME-9H Pre-drill…
  22. Corporate Update December 2020 – Vaalco Energy Inc. – slide 22
    2019/20 Drilling Program: Etame 11H Etame Field Main Fault Block Gamba Development Horizontal development well to optimize production in the east side ET-4H of the main fault block Successfully drilled and brought online in January…
  23. Corporate Update December 2020 – Vaalco Energy Inc. – slide 23
    2019/20 Drilling Program: SE Etame 4P/4H SE Etame Fault Compartment/Step Out Area Successfully evaluated the Step Out area with the SE Etame 4P, interpreted as an extension from the SE Etame 2H SE Etame 4H horizontal development…
  24. Corporate Update December 2020 – Vaalco Energy Inc. – slide 24
    Etame Organic Growth Underpinning Vision 2025 Production Growth 30,000 25,000 Gross BOPD 20,000 15,000 10,000 5,000 0 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Base Drilling2019/2020 Drilling…
  25. Corporate Update December 2020 – Vaalco Energy Inc. – slide 25
    Reserves and Resources at Etame Organic Growth Opportunities East Ebouri Gamba Extensions: 3 South East Etame and 2 South Tchibala Etame Gamba wells Ebouri West Etame Gamba Leads/Prospects: 5 potential satellite prospects…
  26. Corporate Update December 2020 – Vaalco Energy Inc. – slide 26
    Gamba Satellite Prospects High Upside Potential with Relatively Lower Risk Five potential satellite prospects identified High upside potential prospective resources with relatively low geological risk as assessed by NSAI, VAALCOs…
  27. Corporate Update December 2020 – Vaalco Energy Inc. – slide 27
    Equatorial Guinea Significant Upside Potential 16.5 million BOE unrisked gross 2C resource(1) Venus discovery; Noble 7.9 million BOE unrisked gross 2C resource(1) Europa discovery 210MMboe Well defined exploration opportunity with 164…
  28. Corporate Update December 2020 – Vaalco Energy Inc. – slide 28
    Stakeholder Engagement VAALCO Energy, Inc. NYSE: EGY LSE: EGY
  29. Corporate Update December 2020 – Vaalco Energy Inc. – slide 29
    Health, Safety, Security & Environment Our Commitment to World Class Safety Health & Safety Distinguished health and safety record with only one serious incident from Q2 2018 through Q3 2020 Aligning the safety management systems with…
  30. Corporate Update December 2020 – Vaalco Energy Inc. – slide 30
    Social License to Operate Our Commitment to Society Diversified workforce VAALCO is committed to supporting the socioeconomic development of the communities in which we operate Colleagues and members of local communities engaging to…
  31. Corporate Update December 2020 – Vaalco Energy Inc. – slide 31
    Ethics and Compliance Our Commitment to High Ethical Standards Good governance is part of the VAALCO culture at all levels of our organization Employees are empowered to uphold these standards in our everyday operation, VAALCO holds a…
  32. Corporate Update December 2020 – Vaalco Energy Inc. – slide 32
    Financial Overview The following slides do not include impact of the pending Sasol Acquisition which is expected to close in early 2021 VAALCO Energy, Inc. NYSE: EGY LSE: EGY
  33. Corporate Update December 2020 – Vaalco Energy Inc. – slide 33
    Financial Snapshot(1) 2020 First Nine Months (44.6) MM 23.1 MM 14.6 MM Net Income (Loss) Adjusted EBITDAX Adjusted Net Income 19.1 MM 4,918 BOPD 21.10 Cash from Operations NRI Production Volume per day Production cost per…
  34. Corporate Update December 2020 – Vaalco Energy Inc. – slide 34
    Key Performance Metrics Profitable Results Build Financial Strength NRI Production by Quarter Realized Price and Avg Brent Price 6,000 70.00 5,000 60.00 50.00 4,000 40.00 NRI BOPD /BO 3,000 61.26 65.80 5,410 30.00 59.54…
  35. Corporate Update December 2020 – Vaalco Energy Inc. – slide 35
    Working Capital and Adjusted Working Capital Liquidity Position Remains Strong 70.0 61.0 60.0 57.2 48.6 50.0 46.2 45.9 44.8 42.0 40.5 38.1 40.0 33.7 33.4 33.8 32.2 29.7 29.0 29.3 30.0 25.8 22.8 24.1 Millions 17.8…
  36. Corporate Update December 2020 – Vaalco Energy Inc. – slide 36
    Major Shareholders Top 20 Shareholders(1) Large, stable shareholder base Average daily trading volume for 2020 is 650,000 shares Management and Board aligned with shareholder interests and owns 10% of outstanding shares…
  37. Corporate Update December 2020 – Vaalco Energy Inc. – slide 37
    Vision 2025 Strategy VAALCO Energy, Inc. NYSE: EGY LSE: EGY
  38. Corporate Update December 2020 – Vaalco Energy Inc. – slide 38
    Vision 2025 2019/20 Etame License Roadmap to Transformational Growth Work Program Achieve material increase in scale Future Etame License as a premier Africa operator Work Programs Maintain operational excellence, cost discipline…
  39. Corporate Update December 2020 – Vaalco Energy Inc. – slide 39
    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…
  40. Corporate Update December 2020 – Vaalco Energy Inc. – slide 40
    Appendix VAALCO Energy, Inc. NYSE: EGY LSE: EGY
  41. Corporate Update December 2020 – Vaalco Energy Inc. – slide 41
    2020 Full Year Guidance(1) (As of November 6, 2020) Q4 2020 FY 2020 WI(2) 5,300 - 5,700 5,500 - 5,600 Production (BOPD) NRI(2) 4,600 - 5,000 4,800 - 4,900 WI(2) 5,300 - 5,700 5,500 5,600 Sales Volume (BOPD) NRI(2) 4,600 5,000 4,800…
  42. Corporate Update December 2020 – Vaalco Energy Inc. – slide 42
    Supplemental Non-GAAP Financial Measures This presentation contains crude oil and natural gas metrics which do not have standardized meanings or standard methods of calculation as classified by the SEC and therefore such measures may not…
  43. Corporate Update December 2020 – Vaalco Energy Inc. – slide 43
    Non-GAAP Reconciliations (in thousands) Three Months Ended Three Months Ended Reconciliation of Net Income (Loss) to Adjusted EBITDAX March 31, 2019 June 30, 2019 September 30, 2019 December 31, 2019 March 31, 2020 June 30, 2020…
  44. Corporate Update December 2020 – Vaalco Energy Inc. – slide 44
    Non-GAAP Reconciliations (in thousands) As of Reconciliation of Changes in Working Capital from Continuing Operations March 31, 2018 June 30, 2018 September 30, 2018 December 31, 2018 March 31, 2019 June 30, 2019 September 30, 2019…
  45. Corporate Update December 2020 – Vaalco Energy Inc. – slide 45
    Etame PSC Contractual Summary PSC Terms Gabon - Etame Royalty Rate 13% Cost Oil 80% through Sept. 2028, 70% thereafter Profit Oil Split/Income Tax See Table Below Government back-in - Tullow 7.5% carried through June 2026, 10%…
  46. Corporate Update December 2020 – Vaalco Energy Inc. – slide 46
    Delivering Value Through Execution Turnaround Driven by Management Team 2017 to 2018 New strategy adopted by management team in 2017 Delivered on objectives to position the Company for sustainable growth Initiated Vision 2025 to…
  47. Corporate Update December 2020 – Vaalco Energy Inc. – slide 47
    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…
  48. Corporate Update December 2020 – Vaalco Energy Inc. – slide 48
    Additional Etame Technical Detail VAALCO Energy, Inc. NYSE: EGY LSE: EGY
  49. Corporate Update December 2020 – Vaalco Energy Inc. – slide 49
    Etame Complex A World Class Asset With Material Upside Potential Gross Reserves and Resources Producing Wells Undeveloped Reserves 118 MMBO produced South Tchibala to date Extension: 1.6 MMBO(1) 32.7 MMBO 2P CPR 2P CPR undeveloped…
  50. Corporate Update December 2020 – Vaalco Energy Inc. – slide 50
    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…
  51. Corporate Update December 2020 – Vaalco Energy Inc. – slide 51
    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: 32.7 gross MMBO 2019 2P CPR developed(1) and 2.7 MMBO SE Etame 4H…
  52. Corporate Update December 2020 – Vaalco Energy Inc. – slide 52
    Additional Etame Gamba Opportunities 2P CPR Drilling Location: South Tchibala 3H: Gamba horizontal 2P CPR undeveloped reserves 1.6 MMBO gross(1) Prospective Step Out Locations: SEENT Platform: Three Gamba wells (8.0 MMBO…
  53. Corporate Update December 2020 – Vaalco Energy Inc. – slide 53
    Additional Etame Dentale Opportunities Additional Prospective Locations: Etame Platform: Four Dentale infills (7.7 MMBO gross)(1) SEENT Platform: One Dentale infills (2.5 MMBO gross)(1) Avouma Platform: Two Dentale infills (3.0…
  54. Corporate Update December 2020 – Vaalco Energy Inc. – slide 54
    Crude Sweetening Project (CSP) Gross MMBO (1) NRI MMBO Contingent Prospective Total Total Wells Drilled and Shut in: Ebouri 3H & 4H 4.4 - 4.4 1.2 Etame 8H 0.4 - 0.4 0.1 Future Opportunities: Ebouri 5H 1.3 - 1.3 0.4 Ebouri 6H -…
  55. Corporate Update December 2020 – Vaalco Energy Inc. – slide 55
    Etame Marin Gross Contingent Resources Upside Resources Beyond 2028 Etame Marin Contingent Resources (2C) Etame Platform: 7.6 MMBO gross(1) SEENT Platform: 1.1 MMBO gross(1) Avouma Platform: 3.9 MMBO gross(1) Ebouri Platform: 0.4…
  56. Corporate Update December 2020 – Vaalco Energy Inc. – slide 56
    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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