VAALCO Energy Announces Year-End 2016 Reserves
February 21 2017 - 04:45PM
VAALCO Energy, Inc. (NYSE:EGY) (“VAALCO” or the “Company”) today
announced year-end 2016 proved reserves of 2.6 million barrels of
oil equivalent (MMBOE) and reserves replacement of 87% of 2016
production in Gabon, based on its reserves report just completed by
Netherland, Sewell & Associates, Inc. The Company has engaged
Netherland, Sewell & Associates to provide annual independent
estimates of its year-end reserves for over 15 years.
The reserve replacement outcome in 2016 was
primarily attributable to four positive factors. VAALCO’s
acquisition of an additional 3.23% participating interest in the
Etame Marin Permit located offshore of Gabon added approximately
11% to the Company’s interest in Etame. The other three factors
were all operationally driven. First, VAALCO’s cost cutting efforts
had the impact of driving down operating cost projections and
extending economic limits. Next, the Company was successful in
demonstrating the effectiveness of deploying lower cost hydraulic
workover units to conduct workovers in Etame during 2016. Finally,
VAALCO’s success in production optimization produced
better-than-forecasted results from the prior year’s development
program. These positive impacts were somewhat offset by the effects
of an 18% reduction in the average adjusted price used to perform
the SEC prescribed reserves calculation. The average price used to
determine reserves was $49.36 and $40.35 in 2015 and 2016,
respectively.
Cary Bounds, VAALCO’s Chief Executive Officer
commented, “This strong outcome for year-end 2016 reserves together
with our recently announced production performance clearly
demonstrates VAALCO’s effective execution on our strategy and
commitment to operational excellence.”
About VAALCO
VAALCO Energy, Inc. is a Houston-based
independent energy company principally engaged in the acquisition,
development and production of crude oil. The Company's properties
and acreage are located primarily in Gabon 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 and Section 21E of the Securities Exchange Act of 1934.
Forward-looking statements are those concerning VAALCO's plans,
expectations, and objectives for liquidity and capital resources,
future drilling, completion, workover and other operations and
activities. All statements, other than statements of historical
facts, included in this 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 may 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, 2015,
subsequent quarterly reports on Form 10-Q, and other reports filed
with the SEC. 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.
For further information: Investor Contact
Elizabeth Prochnow 713-623-0801
Vaalco Energy (NYSE:EGY)
Historical Stock Chart
From Feb 2024 to Mar 2024
Vaalco Energy (NYSE:EGY)
Historical Stock Chart
From Mar 2023 to Mar 2024