VAALCO Energy, Inc. (NYSE: EGY; LSE: EGY) (“VAALCO” or the
“Company”) today announced that its Board of Directors has named
George Maxwell as Chief Executive Officer effective April 12, 2021.
Mr. Maxwell, who has been a Non-Executive Director of the Company
since June 2020 and resides in the U.K., will continue to serve as
a member of the Board. Cary Bounds who has served as Chief
Executive Officer since 2016 will leave VAALCO to pursue other
interests. The Company also provided details on its newly updated
forward strategy.
The Company’s stated goal is to continue to be
one of the leading independent exploration and production companies
in West Africa, with a strategy of achieving significant
shareholder returns by maximizing the value of, and free cash flow
from, its existing resources, coupled with highly accretive
inorganic growth opportunities. The Board believes that Mr.
Maxwell’s recent achievement of founding, building, and selling a
successful African energy company, as well as his significant
experience serving in executive leadership positions, a proven
track record in M&A and strong ties to the European, American
and African capital market communities will complement and
accelerate the Company’s ability to achieve this strategy.
The Board believes that enhancing the Company’s
corporate presence in London, the primary financial and advisory
hub for African energy companies, will augment the experience
within VAALCO’s leadership and complement the Company’s supportive
equity shareholder base in the U.S. With a majority of transactions
for North Africa and Sub-Saharan Africa energy companies taking
place within the European financial markets, and a large part of
the Company’s peer group active within this environment, it is
strategically important to have an enhanced presence within this
market environment.
Further to VAALCO’s successful dual listing on
the London Stock Exchange, the Company intends to open a business
development office in London and appoint a permanent Chief
Financial Officer who will be based in this new London
office. Mr. Maxwell expects to split his time equally between
Houston and London. The VAALCO executive leadership team intends to
maintain its strong relationship with the Gabonese government.
Andrew Fawthrop, VAALCO’s Chairman of the Board,
commented, “We are excited to begin the next chapter of VAALCO’s
35-year history with our decision to increase our presence in the
U.K. and international markets, a move that we believe will support
VAALCO’s ambition to maximise shareholder returns. We are very
fortunate to have George Maxwell serve as our new CEO as he has
significant experience serving in executive leadership positions, a
proven track record in corporate and M&A activities and strong
ties to the London investment community. He has gotten to know our
Company well since joining our Board in June of last year and can
therefore ensure a smooth transition of leadership. He has provided
invaluable insight and his knowledge of the international energy
and capital markets have made him an important resource for us and
we look forward to his leadership as our new CEO.”
Mr. Fawthrop continued, “We would like to thank
Cary for his dedication and valued years of service to VAALCO. Cary
guided VAALCO through some very challenging periods for the
industry and helped the Company emerge stronger. He oversaw the
highly successful 2019/2020 drilling program and the very accretive
Sasol acquisition, the combination of which has grown production
and reserves considerably and positioned VAALCO for significant
cash flow in 2021. We wish Cary the best in the next phase of his
career.”
George Maxwell commented, “I’m excited by this
opportunity to build on a successful foundation and lead the
existing teams to grow the Company to the next level. The positions
we have in Gabon and Equatorial Guinea provide exciting development
opportunities to enhance our business and provide a strong platform
for investors.
In this current and future market environment, I
believe it is paramount that businesses are sustainable in order to
provide benefits to all stakeholders, with a focus on growth and
investor returns. This is one of the guiding principles I
successfully applied in my previous executive role and I believe
VAALCO is in an excellent position to ultimately achieve this.
VAALCO has adopted share repurchase programs in the past as a way
to return value to our shareholders and we will consider similar
programs in the future as well as potential dividends to complement
our growth strategy.
I remain wholly committed to our roots and
investor base in the U.S., and believe that our expanded presence
in the U.K. financial and advisory markets maximizes opportunities
for us to achieve our stated strategy.”
About George Maxwell
George Maxwell joined VAALCO’s Board in June
2020 and has over 25 years of experience in the oil and gas
industry, including in both the producing and service/manufacturing
arenas. Mr. Maxwell founded Eland Oil & Gas Plc. in 2009 and
served as the company’s Chief Executive Officer from September 2014
to December 2019, Chief Financial Officer from 2010 to 2014, and as
a member of the Board of Directors from 2009 to 2019, until the
company was acquired by Seplat Petroleum Development Company Plc
for a value in excess of $500 million, in December 2019. Prior to
founding Eland, Mr. Maxwell served as the business development
manager for Addax Petroleum and, prior to this, commercial manager
in Geneva. Mr. Maxwell joined Addax Petroleum in 2004 and held the
general manager position in Nigeria, where he was responsible for
finance and fiscal and commercial activities. Prior to this, Mr.
Maxwell worked with ABB Oil & Gas as vice president of finance
based in the U.K. with responsibilities for Europe and Africa. He
held a similar position in Houston, from where the organization ran
its operations in ten countries. Mr. Maxwell also serves as a
non-executive director on the board of LEKOIL PLC, a publicly
traded Africa-focused exploration and production company with
interests in Nigeria and Namibia, but plans to step down from this
position to focus on his role at VAALCO.
Mr. Maxwell graduated from Robert Gordon
University in Aberdeen with a Masters in Business Administration.
He is a Fellow of the Energy Institute in the U.K. and has formerly
served on the boards of directors of Elcrest Exploration and
Production Nigeria Ltd. and Westport Oil Limited.
About VAALCO
VAALCO, founded in 1985, is a Houston, USA
based, independent energy company with production, development and
exploration assets in the West African region.
The Company is an established operator within
the region, holding a 63.6% participating interest in the Etame
Marin block, located offshore Gabon, which to date has produced
over 120 million barrels of crude oil and of which the Company is
the operator.
For Further Information
VAALCO Energy, Inc. (General and Investor
Enquiries) |
+00 1 713 623 0801 |
Website: |
www.vaalco.com |
|
|
|
|
Al Petrie Advisors (US Investor Relations) |
+00 1 713 543 3422 |
Al Petrie / Chris Delange |
|
|
|
Buchanan (U.K. Financial PR) |
+44 (0) 207 466 5000 |
Ben Romney / Kelsey Traynor / James Husband |
VAALCO@buchanan.uk.com |
Forward Looking Statements
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. All statements, other than statements of
historical facts, included in this document that address
activities, events, plans, expectations, objectives or developments
that VAALCO expects, believes or anticipates will or may occur in
the future are forward-looking statements. These statements may
include statements related to the impact of the COVID-19 pandemic,
including the sharp decline in the global demand for and resulting
global oversupply of crude oil and the resulting steep decline in
oil prices, production quotas imposed by Gabon, disruptions in
global supply chains, quarantines of our workforce or workforce
reductions and other matters related to the pandemic, well results,
wells anticipated to be drilled and placed on production, future
levels of drilling and operational activity and associated
expectations, the implementation of the Company’s business plans
and strategy, prospect evaluations, prospective resources and
reserve growth, VAALCO’s 2021-2022 drilling program, its activities
in Equatorial Guinea, expected sources of and potential
difficulties in obtaining future capital funding and future
liquidity, its ability to restore production in non-producing
wells, future operating losses, future changes in crude oil and
natural gas prices, future strategic alternatives, future
acquisitions, capital expenditures, future drilling plans,
interpretation of seismic data and costs thereof, negotiations with
governments and third parties, timing of the settlement of Gabon
income taxes, and expectations regarding processing facilities,
production, sales and financial projections. These statements are
based on assumptions made by VAALCO based on its experience and
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,
crude oil and natural gas price volatility, the impact of
production quotas imposed by Gabon in response to production cuts
agreed to as a member of OPEC, inflation, general economic
conditions, the outbreak of COVID-19, the Company’s success in
discovering, developing and producing reserves, production and
sales differences due to timing of liftings, decisions by future
lenders, the risks associated with liquidity, lack of availability
of goods, services and capital, environmental risks, drilling
risks, foreign regulatory and operational risks, and regulatory
changes.
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 Energy (NYSE:EGY)
Historical Stock Chart
From Aug 2024 to Sep 2024
Vaalco Energy (NYSE:EGY)
Historical Stock Chart
From Sep 2023 to Sep 2024