EGY Vaalco Energy Inc

• Results at a Glance - On August 6, 2015, Vaalco Energy Inc. reported its Q2 2015 results. The Company reported oil and gas sales of $27.1 million, versus $52.1 million reported in Q2 2014. Though the Company's revenue declined 48.0% Y-o-Y, it exceeded consensus revenue estimates of $20.23 million by analyst at MarketBeat. During the quarter, net loss was $5.2 million or $0.09 loss per diluted share, which includes a $5.8 million non-cash impairment charge primarily due to lower projected oil prices and additional development costs. The Company reported net income of $24.7 million, or $0.43 per diluted share in Q2 2014. Adjusted net income was $0.6 million or $0.01 per diluted share, which is in-line with the analysts' consensus estimate of $0.01 at MarketBeat.

• Segment & Project Results - The release informed that crude oil revenues were $27.0 million, versus $51.6 million reported in Q2 2014. The Company sold c. 455,000 net Bbls at an average price of $59.16 per Bbl in Gabon compared to 477,000 net Bbls at an average price of $108.24 per Bbl in Q2 2014. The release further noted that sales volumes (liftings) exceeded production volumes due to oil that remained in the FPSO at March 31, 2015 that was sold in the second quarter. Natural gas revenues (including revenues from natural gas liquids) during the quarter were $0.1 million vis - a - vis $0.3 million reported in Q2 2014.

• Drilling Update - The Company successfully completed drilling at the Etame 12-H development well offshore Gabon from the new Etame platform that was installed in late 2014. The Company has also completed drilling at the Southeast Etame 2-H development well that was brought online in July on the new Southeast Etame/North Tchibala (SEENT) platform at a rate of 3,400 gross barrels of oil per day (BOPD) (950 BOPD NWI).  The Company achieved production rate of over 21,000 BOPD gross (5,900 NWI) from the Etame Marin area, the highest production rate since March 2012.

• Management Outlook - Steve Guidry, Chairman and CEO, stated, "We anticipate continued production growth through 2015 from our development drilling and workover program, which is why we are raising our full year production guidance range to 4,100 BOEPD to 4,600 BOEPD.  The majority of our capital expenditures for the Etame and SEENT development projects are behind us, and remaining outlays are for development wells and workovers, all of which are expected to generate attractive stand-alone returns even in the current price environment."

To find out how this influences our rating on Vaalco Energy Inc., read the full report in its entirety here: http://www.aciassociation.com/?c=EGY

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