BOPD in Q1 2021, up 11% from the fourth quarter of 2020;
Closed the transformational acquisition of Sasol’s working interest in the Etame field offshore Gabon (the “Sasol Acquisition”) on February 25, 2021;
Announced the signing of a non-binding Letter of Intent (“LOI”) for a new Floating Storage and Offloading unit (“FSO”) with Omni Offshore Terminals Pte Ltd (“Omni”)
at the Etame field;
Proposal could reduce VAALCO’s operating costs by 15% to 25% when compared to the current FPSO contract during the term of the proposed agreement;
Entered into crude oil commodity swap agreements for a total of 672,533 barrels at a Dated Brent weighted average price of $66.51 per barrel for the period of May 2021 through October 2021;
VAALCO Enters Into Additional Crude Oil Derivative Contracts
HOUSTON, May 11, 2021 (GLOBE NEWSWIRE) VAALCO Energy, Inc. (NYSE: EGY; LSE: EGY) (“VAALCO” or the “Company”) today announced that it has entered into crude oil commodity swap agreements for a total of 672,533 barrels at a Dated Brent weighted average price of $66.51 per barrel for the period from and including May 2021 through October 2021. These swaps will settle on a monthly basis.
The Company is hedging a majority of its 2021 production volumes to protect cash flows which are expected to be used to fund the 2021/2022 drilling program of up to four wells and the potential Floating Storage and Offloading (“FSO”) unit capital upgrade costs if an agreement is executed. The Company entered into similar commodity swap agreements in January 2021. In total, VAALCO now has 70% of its production hedged through October 2021 at a Dated Brent weighted average price of $62.27 per barrel.
Ben Romney / Kelsey Traynor / James Husband
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 recent 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, 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, its ability
HOUSTON -
May 11, 2021 - VAALCO Energy, Inc. (NYSE: EGY; LSE: EGY) ( VAALCO or the Company ) today announced that it has entered into crude oil commodity swap agreements for a total of 672,533 barrels at a Dated Brent weighted average price of
$66.51 per barrel for the period from and including
May 2021 through
The Company is hedging a majority of its 2021 production volumes to protect cash flows which are expected to be used to fund the 2021/2022 drilling program of up to four wells and the potential Floating Storage and Offloading ( FSO ) unit capital upgrade costs if an agreement is executed. The Company entered into similar commodity swap agreements in
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 recent 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, 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, its ability to restore production in non-producing wells, future operating