HOUSTON, March 2, 2016 /PRNewswire/ -- VAALCO Energy,
Inc. (NYSE: EGY) ("VAALCO" or "the Company") announced today that
the borrowing base under its revolving credit facility was set at
$20.1 million effective December 31, 2015. The redetermination was a
result of the regular semi-annual review conducted by the
International Finance Corporation (IFC), the lender under the
facility. All covenants under the facility remain
unchanged.
The borrowing base is supported solely by the Company's Etame
Marin producing assets in Gabon. The next scheduled
redetermination date is at June 30,
2016. Currently, the Company has $15
million drawn under this facility which was also the amount
drawn at December 31, 2015. The
IFC communicated to the Company that if VAALCO were to seek
additional drawdowns before the next redetermination, the IFC could
elect, under the terms of the loan agreement, to conduct an interim
redetermination which it believes would result in a borrowing base
of less than $20.1 million due to
commodity prices being lower today than they were at December 31, 2015.
Steve Guidry, VAALCO's Chief
Executive Officer, commented, "The significant downturn in oil
prices was the primary reason that the IFC decided to lower our
borrowing base. We are actively exploring a variety of options
to supplement VAALCO's potential liquidity needs in conjunction
with our strategic alternatives review process announced
January 26, 2016."
About VAALCO
VAALCO Energy, Inc. is a Houston-based independent energy company
principally engaged in the acquisition, exploration, development
and production of crude oil. The Company's properties and
exploration acreage are located primarily in Gabon, Angola
and Equatorial Guinea in
West Africa.
This news release 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, which are intended to qualify for the safe harbor from
liability established by the Private Securities Litigation Reform
Act of 1995. Forward-looking statements are those concerning
VAALCO's plans, expectations, and objectives for future drilling,
completion and other operations and activities, including
statements relating to a potential strategic alternative
transaction, or the terms, timing or structure of any such
transactions (or whether any such transaction will take place at
all) and VAALCO's future performance if any such transaction is
completed. All statements, other than statements of historical
facts, included in this news release 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 annual
report on Form 10-K for the year ended December 31, 2014, subsequent quarterly reports
on Form 10-Q, 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. VAALCO assumes no obligation to update any
forward-looking statement as of any future date.
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SOURCE VAALCO Energy, Inc.