Cobas AM: Nueva Gestora de Francisco García Paramés

Vaalco Reports Net Income of $9.9 Million, or $0.17 per Diluted Share

HOUSTON, May 12, 2021 (GLOBE NEWSWIRE) -- VAALCO Energy, Inc. (NYSE: EGY, LSE: EGY) today reported operational and financial results for the first quarter of 2021.

Highlights and Recent Key Items: 

• Reported strong Q1 2021 net income of $9.9 million ($0.17 per diluted share) and Adjusted Net Income(1) of $8.7 million ($0.15 per diluted share);
• Generated Adjusted EBITDAX(1) of $18.0 million, more than five times compared to the fourth quarter of 2020;
• Sold 619,000 barrels of oil in Q1 2021, an increase of 113% over the fourth quarter of 2020; 
• Produced 5,180 net revenue interest (“NRI”)(2) barrels of crude oil per day (“BOPD”), or 5,954 working interest (“WI”)(3) 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 believes that it has locked in sufficient cash flow to fund its capital commitments related to the upcoming drilling campaign and potential FSO conversion costs; and
• Maintained a strong balance sheet with no debt and a cash balance of $19.3 million, including $1.7 million in joint venture owner advances as of March 31, 2021.

“Oyu Tolgoi had an exceptionally strong first quarter with production of 45,449 tonnes of copper and 145,656 ounces of gold. Our strong operational performance combined with rising copper and gold prices generated revenue of $526.5 million, a 303% increase over the same quarter last year.” stated Steve Thibault, Interim Chief Executive Officer of Turquoise Hill Resources.
“However, as we previously cautioned and are now able to confirm, the pit wall failure experienced in the fourth quarter of 2020, combined with the cumulative effects of COVID mitigation measures, have resulted in a downward revision in gold production guidance for 2021, from 500,000 – 550,000 ounces to 400,000 to 480,000 ounces, while the copper guidance range has expanded from 160,000 – 180,000 tonnes to 150,000 – 180,000 tonnes. The recent surge of COVID-19 cases in Mongolia has resulted in increased precautionary measures that we expect will continue to impact open pit operations and the underground development through the second quarter, while the vaccination campaign in Mongolia and Oyu Tolgoi rolls out. Safety is our priority and we will continue to work with the Mongolian authorities to monitor and prevent the spread of COVID-19.”