VAALCO Energy Announces Additional Funding From the IFC
March 16 2017 - 4:53PM
VAALCO Energy, Inc. (NYSE:EGY) (“VAALCO” or the “Company”)
announced today that the International Finance Corporation (IFC)
approved VAALCO’s formal request to borrow $4,166,500 of additional
funds under its Supplemental Agreement with the IFC which was
executed June 29, 2016. The borrowed funds will provide added
financial flexibility and facilitate execution of VAALCO’s
corporate strategy.
The Supplemental Agreement amended VAALCO’s
previously existing loan agreement with the IFC, converting the
revolving portion of the credit facility to a term loan with $15
million outstanding and providing that VAALCO could request an
additional $5 million of borrowings, subject to IFC approval.
VAALCO received the approval from the IFC on March
14, 2017 and expects to receive the funds on or before March 31,
2017. The additional borrowings will be repaid in five
essentially equal quarterly principal installments commencing June
30, 2017, together with interest which will accrue at LIBOR plus
5.75%.
Cary Bounds, VAALCO’s Chief Executive Officer,
commented, “IFC’s approval of these additional funds helps position
VAALCO during 2017 to execute on future growth initiatives, such as
development drilling or opportunistic acquisitions. We value our
relationship with the IFC and appreciate the many years of support
they have provided VAALCO that has allowed us to continue our
development activities in Gabon.”
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, 2016 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)
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