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Steven GuidryChief Executive Officer
Africa Oil Week10thAfrica Independents ForumCape Town, South Africa
November 26, 2013
Operat ions and Future Exp loration
in West Afr ica
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Safe Harbor Statement
This presentation includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E ofthe Securities Exchange Act of 1934, as amended. All statements included in this presentation that address activities, events or developments that VAALCOexpects, believes or anticipates will or may occur in the future are forward-looking statements. These statements include expected capital expenditures,
future drilling plans, objectives and operations, prospect evaluations, negotiations and relations with governments and third parties, reserve growth,estimated revenues and losses, and projected costs, timing and amount of future production. These statements are based on assumptions made byVAALCO based on its experience perception of historical trends, current conditions, expected future developments and other factors it believes areappropriate in the circumstances. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond VAALCO'scontrol. These risks include, but are not limited to, inflation, general economic conditions, oil and gas price volatility, the VAALCO's success in discovering,developing and producing reserves, lack of availability drilling equipment and services, availability of and capital, environmental risks, drilling risks, foreignoperational risks, regulatory changes, the uncertainty inherent in estimating reserves and in projecting future rates of production, cash flow and access tocapital, the timing of development expenditures, and other risks. Additional information on risks and uncertainties that could affect our business prospectsand performance are provided in the most recent reports of VAALCO filed with the Securities and Exchange Commission. These forward-looking statementsare based on VAALCOs current expectations and assumptions about future events and are based on currently available information as to the outcome andtiming of future events. VAALCO cautions you that forward-looking statements are not guarantees of future performance and that actual results ordevelopments may differ materially from those projected in the forward-looking statements. VAALCO disclaims any intention or obligation to update or reviseany forward-looking statements, whether as a result of new information, future events, or otherwise.
The SEC requires oil and gas companies, in their filings with the SEC, to disclose proved reserves that a company has demonstrated by actual production orconclusive formation tests to be economically and legally producible under existing economic and operating conditions. VAALCO uses the terms estimatedultimate recovery, EUR, probable, 3P, possible, and non-proven reserves, reserve potential or upside, unrisked potential or other descriptions ofvolumes of reserves potentially recoverable through additional drilling or recovery techniques that are not classified as proved reserves, may not have beencalculated as defined by SEC regulations and that the SECs guidelines may prohibit us from including in any future filings w ith the SEC. These estimatesare by their nature more speculative than estimates of proved reserves and accordingly are subject to substantially greater risk of being actually realized bythe company. VAALCO believes these estimates are reasonable, but such estimates have not been reviewed by independent engineers. Estimates maychange significantly as development provides additional data, and actual quantities that are ultimately recovered may differ substantially from prior estimates.Production forecasts are dependent upon many assumptions, including estimates of production decline rates from existing wells and the outcome of futuredrilling activity. Although VAALCO believes the forecasts are reasonable, VAALCO can give no assurance they will prove to have been correct. They can be
affected by inaccurate assumptions and data or by known or unknown risks and uncertainties.
Market and industry data and forecasts used in this presentation have been obtained from independent industry sources as well as from research reportsprepared for other purposes. Although VAALCO believes these third-party sources to be reliable, VAALCO has not independently verified the data obtainedfrom these sources and VAALCO cannot assure you of the accuracy or completeness of the data. Forecasts and other forward-looking information obtainedfrom these sources are subject to the same qualifications and uncertainties as the other forward looking statements in this presentation.
Inquiries:
VAALCO Energy, Inc.
Attn: Gregory R. Hullinger
4600 Post Oak Place, Suite 300
Houston, TX 77027
Ph: 713-623-0801
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Strong high margin base business Near term low risk growth opportunities Balanced long term growth strategy
Near fieldDevelopment
Current West AfricaExploration
Program
Transformational
Transaction
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1985: Founded in Houston by Virgil AWALSTON and Charles ALCORN
1986: Acquired operating interests in four fields offshore
Palawan, Philippines (as Alcorn International)
1992: Brought on stream West Linapacan Field - first deep waterproduction (1140ft) in ASEAN
1995: Signed Etame Marin Permit PSA, Offshore Gabon
1998: Etame Field discovery (Etame Marin Permit) 2002: First oil from Etame Field
2004: Ebouri, Avouma discoveries (Etame Marin Permit)
2005: Signed PSA in Mutamba Iroru, Onshore Gabon
2006: Signed PSA in Block 5 Offshore Angola
2006: Listed on the NYSE
2007-2009: Avouma and Ebouri Platforms installed and production commenced
2011: South East Etame Field discovery (Etame Marin Permit)
2012: N Gongui Field discovery (Mutamba Iroru Permit)
2012: Signed PSA in Block P Offshore Equatorial Guinea
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Block 5Work ing Interest 40.0%
1,400,000 gross acres560,000 net acres
Offshore Exploration
Mutamba Iroru PermitWork ing Interest 41.0%
270,000 gross acres111,000 net acres
Onshore Exploration& Development
Etame Marin PermitWork ing Interest 28.1%
760,000 gross acres213,000 net acres
Offshore Productionand Exploration
Block PWork ing Interest 31.0%
57,000 gross acres18,000 net acres
Offshore Exploration& Development
GABON
Port Gentil
Libreville
Luanda
ANGOLA
EQUATORIAL
GUINEA
Bata
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(1) As of 11/21/2013(2) As of 9/30/2013(3) As of 12/31/2012
Key Metrics
Market Capitalization (1) $ 330 MM
Cash Balance (Unrestr icted) (2) $ 100 MM
Debt (2) $ --- MM
Production(net)
(1)
4,400 BOPDReserves (2P) (3) 11.2 MMBOE
% Oil (3) 98%
% Operated (3) 100%
Employees (1) 100
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Cost Metrics (2002-2013)
Development Costs $ 14 /BBL
Exploration Costs $ 3 /BBL
DD&A $ 9 /BBL
0
5,000
10,000
15,000
20,000
25,000
ETAME Marin Gross Production
Etame Original Forecast Etame Base Actual Etame Addit ional Actual Avouma EbouriBOPD
0.0
20.0
40.0
60.0
80.0
100.0
120.0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
1PRese
rves(MMBO)
Gross EUR 1P Reserves
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Reserves Breakdown(As of 12/31/2012) (1)
Proved 7.45 MMBOProbable 3.76 MMBO
Possible 4.21 MMBO
Total Reserves 15.42 MMBO
48%
25%
27%
3P Reserves (MMBO)
Proved Probable Possible
(1) Based on the NSAI Independent
Reserve Report
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$85.00
$90.00
$95.00
$100.00
$105.00
$110.00
$115.00
$Rev/Bbl
Realized Oil Price Per BBLCompared to Brent BBL (2012)
0.00%
20.00%
40.00%
60.00%
80.00%
100.00%
Total%o
fProduction
Oil / Gas Production
% Gas
% Oil
Comparison Group:Other Operators in Gabon:
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New Etame Platform $175 MM gross investment
($49 MM net to VAALCO) in thenew Etame platform will resultin improved drainage efficiency
Develop 10 MMBOEincremental reserves Initial 3 well development with
additional wells likely, at $25MM gross per well ($7 millionnet to VAALCO)
4 pile, 8 slot platform in waterdepth of 85 meters
Installation in 2H 2014
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New SEENT Platform $150 MM gross investment
($42 MM net to VAALCO) in thenew platform will commercializethe previously discoveredresource
Develop 7 MMBO reserves Initial 3 well development with
additional wells likely, at $25MM gross per well ($7 millionnet to VAALCO)
4 pile, 8 slot platform in waterdepth of 85 meters
Installation in 2H 2014
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Construction of Etame and SEENT platforms on schedule for 2H 2014 installation
Total investment of Etame and SEENT projects $544 MM gross ($152 million net)
Facilities - $ 325 MM Wells - $ 219 MM
Etame
JacketSEENT
Jacket
Etame
Deck
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Expected spud December 2013 Gamba primary target; Melania secondary target 53m water depth 3,000m well depth Dry Hole Cost - $8.5 mm net
Gamba 5-35mmbo ~ gross unrisked recoverable Lucina 4-81mmbo ~ gross unrisked recoverable
10 kmAA
N
A
A
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Gamba-Ivinga FieldCum: 286 MMBO & 568 BCF
EUR 350 MMBO(From IHS)
NGonguidiscovery welldrilled in Q4 2012
Encountered 49 feet of oilpay in the Gamba Formation
50% partner TOTALoperates the Atora Field6 miles to the North
Plan of Developmentunderway for submittal toGabon Government
Negotiations currently in
progress on establishing aproduction area and renewalof exploration acreage
Bende Field
Atora FieldCum: 38 MMBO
Rabi Kounga FieldCum: 840 MMBO
EUR 900 MMBO
NGongui Discovery
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Offshore Angola: Large Pre-sal t Structures in the Kw anza Basin
Loengo
VAALCOProspect
Limits ofKwanza Basin
MaerskAZUL-1
CobaltMavinga-1
CobaltCAMEIA-1 & CAMEIA-2
CobaltLontra-1
VAALCOLoengo Prospect
VAALCOOmbundi Lead
Block 5
Atlantic
Ocean
MobilBaleia-1A
A
A
A A
Block 5 Block 20 Block 21
Ombundi
VAALCOLead
Baleia -1A
MobilDiscovery
Lontra-1
CobaltDiscovery
CobaltDiscovery
Mavinga-1
CobaltProspect
Cameia -1
CobaltDiscovery
Cameia-2
CobaltProspect
Possible Oil Zone
Confirmed Oil Zone
Basement
Salt
Basement
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VAALCOBlock 5
Salt
~15 miles ~65 miles
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PreSalt Lead or Prospect
Post Salt Prospect
Block 5
Atlantic
Ocean
Mubafo Discovery
Ombundi LeadWD=500m+ Potential=100-400-760 MMbls
NE NE
NENE
Loengo ProspectWD=108m Potential=70-104-250 MMbls
Jack ProspectWD=75m Potential=22-33-55 MMbls
Kindele ProspectWD=101m Potential=20-28-49 MMbls
SW
SW SW
SW
Offsho re Angola: Bloc k 5 Prospects and Leads
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Post Salt Discovery
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VAALCO in November 2012,acquired 31% workinginterest in 57,000 grossacres (PDA area)
Block has 2005 discoveryVenus is believed to be
commercial as a standalonedevelopment project
VAALCO is working withGEPetrol (Operator) todevelop a joint operatorshipmodel
Exploration upside
Two exploration wellsexpected to be drilled in thenear future
Marathon1,100 mmboe
Exxon1,300 mmboe
Equatorial
Guinea
Block PPDA
Hess600 mmboe
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Cameroon
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Atlantic
Atlantic
Ocean
PDABoundary
57,000 acres232 km2
Block PPDA
Discoveries
Prospects
SW Grande
Europa Discovery
Venus Field
(17 - 21 mmbo)
Marte
A
A
Exploration Play TypesSW
Grande Marte
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Strong high margin base business
100% operated
98% oil - leveraged to Brent
Stable production profile
High qualitylow risk near term growth
Projects on time, on budget
Near field development opportunities
Attractive project economics
Long term growth strategy
In 3 out of top 4 West Africa producing countries
Balancing exploration growth with acquisitions
Exposure in excess of 700 MMBOE Net Unrisked Resource Potential
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In Gabon: La Direction Generale des Hydrocarburesand
Our partners in Etame Marin PermitAddax, Sasol, Tullow, Sojitz andPetroenergy
Our partner in Mutamba Iroru PermitTOTAL Gabon
In Angola: Sonangol EPand
Our Partner in Block 5 - Sonangol P&P (carried interest)
In Equatorial Guinea: Ministry of Mines, Industry and Energy and
Our partners in Block P - GEPetrol, Atlas, Crown
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Thank Youfor Your
Attention
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