HOUSTON, July 30, 2015 /PRNewswire/ -- VAALCO Energy,
Inc. (NYSE: EGY) announced today that the borrowing base under its
revolving credit facility was reaffirmed at the full $65 million level, the maximum capacity provided
for under the facility. The redetermination was a result of the
regular semi-annual review conducted by the International Finance
Corporation (IFC), the lender under the facility. The
covenants under the facility remain unchanged, including the
removal of the debt to equity covenant that was previously
announced in May 2015.
The borrowing base is supported solely by the Company's Etame
Marin producing assets in Gabon. The next scheduled
re-determination date is in December 2015. As of March 31, 2015, the Company had $15 million drawn under this facility and no
additional borrowings have been made against the facility since
that date. The Company believes that its cash balance and
cash flow from operations will be more than sufficient to fund its
operations and capital budget in 2015. The increase in the
borrowing base adds additional financial security.
Steve Guidry, VAALCO's Chairman
and CEO commented, "We are very pleased with the results of our
semi-annual credit facility re-determination. Despite the
significant downturn in oil prices, our borrowing base was 100%
reaffirmed, reflecting the value of our ongoing Etame Marin
development program. We value our relationship with the IFC as a
financial partner."
About VAALCO
VAALCO Energy, Inc. is a Houston based independent energy company
principally engaged in the acquisition, exploration, development
and production of crude oil. VAALCO's strategy is to increase
reserves and production through the exploration and exploitation of
oil and natural gas properties with high emphasis on international
opportunities. The company's properties and exploration
acreage are located primarily in Gabon, Angola
and Equatorial Guinea in
West Africa.
Other Information
This document includes "forward-looking statements" within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended.
Forward-looking statements are those concerning VAALCO's plans,
expectations, and objectives for future drilling, completion and
other operations and activities. All statements included in this
document that address activities, events or developments that
VAALCO expects, believes or anticipates will or may occur in the
future are forward-looking statements. These statements include
expected capital expenditures, future drilling plans, prospect
evaluations, liquidity, negotiations with governments and third
parties, expectations regarding processing facilities, and reserve
growth. These statements are based on assumptions made by VAALCO
based on its experience, perception of historical trends, current
conditions, expected future developments and other factors it
believes are appropriate in the circumstances. Such statements are
subject to a number of assumptions, risks and uncertainties, many
of which are beyond VAALCO's control. These risks include, but are
not limited to, oil and gas price volatility, inflation, general
economic conditions, the Company's success in discovering,
developing and producing reserves, lack of availability of goods,
services and capital, environmental risks, drilling risks, foreign
operational risks, and regulatory changes. These and other risks
are further described in VAALCO's quarterly report on Form 10-Q for
the three months ended March 31,
2015, annual report on Form 10-K for the year ended
December 31, 2014, and other reports
filed with the SEC which can be reviewed at http://www.sec.gov, or
which can be received by contacting VAALCO at 9800 Richmond Avenue,
Suite 700, Houston, Texas 77042,
(713) 623-0801. Investors are cautioned that forward-looking
statements are not guarantees of future performance and that actual
results or developments may differ materially from those projected
in the forward-looking statements. VAALCO disclaims any intention
or obligation to update or revise any forward-looking statements,
whether as a result of new information, future events, or
otherwise.
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SOURCE VAALCO Energy, Inc.