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Capital One Securities, Inc.

8th Annual Energy Conference New Orleans, LA December 13, 2013

Steve Guidry, CEO

NYSE:EGY

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 of the Securities Exchange Act of 1934, as amended. All statements included in this presentation 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 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 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, 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, foreign operational risks, regulatory changes, the uncertainty inherent in estimating reserves and in projecting future rates of production, cash flow and access to capital, the timing of development expenditures, and other risks. Additional information on risks and uncertainties that could affect our business prospects and performance are provided in the most recent reports of VAALCO filed with the Securities and Exchange Commission. These forward-looking statements are based on VAALCOs current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events. VAALCO cautions you 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. 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 or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. VAALCO uses the terms estimated ultimate recovery, EUR, probable, 3P, possible, and non -proven reserves, reserve potential or upside, unrisked potential or other descriptions of volumes of reserves potentially recoverable through additional drilling or recovery techniques that are not classified as proved reserves, may not have been calculated as defined by SEC regulations and that the SECs guidelines may prohibit us from including in any future filings w ith the SEC. These estimates are by their nature more speculative than estimates of proved reserves and accordingly are subject to substantially greater risk of being actually realized by the company. VAALCO believes these estimates are reasonable, but such estimates have not been reviewed by independent engineers. Estimates may change 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 future drilling 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 reports prepared for other purposes. Although VAALCO believes these third-party sources to be reliable, VAALCO has not independently verified the data obtained from these sources and VAALCO cannot assure you of the accuracy or completeness of the data. Forecasts and other forward-looking information obtained from 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

www.vaalco.com

VAALCO: Poised for Growth


Strong high margin base business Near term low risk growth opportunities Balanced long term growth strategy

Transformational Transaction

Strong Etame Marin Cash Flow

Current West Africa Exploration Program


Near field Development

VAALCO Company Milestones


1985 1986 1992
Founded in Houston by Virgil A WALSTON and Charles ALCORN Acquired operating interests in four fields offshore Palawan, Philippines (as Alcorn International) Brought on stream West Linapacan Field first deep water production (1140 ft) in ASEAN

1995
1998 2002 2004 2005 2006 2011 2012
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Signed Etame Marin Permit PSA, Offshore


Etame Field discovery (Etame Marin Permit) First oil from Etame Field Ebouri, Avouma discoveries (Etame Marin Permit) Signed PSA in Mutamba Iroru, Onshore Gabon Signed PSA in Block 5 Offshore Angola. Listed on the NYSE.

2007-09 Avouma and Ebouri Platforms installed and production commenced


Southeast Etame Field discovery (Etame Marin Permit) NGongui Field discovery (Mutamba Iroru Permit). Signed PSA in Block P Offshore Equatorial Guinea.

VAALCO 2013 Highlights


Progressed Etame Expansion and Southeast Etame/N. Tchibala project construction Installation planned for Q3-2014

Resolved ownership in Angola Block 5/06 Sonangol P&P assigned 40% WI


Developed shared operatorship model with GEPetrol for Equatorial Guinea Block P Dimba exploration well set to spud Stock repurchase of $10.7 MM Board approved $117 MM 2014 capital budget Largest ever capital budget Leadership transition completed

West Africa Focus


Block P Working Interest 31.0% 57,000 gross acres 18,000 net acres Offshore Exploration & Development

Bata

EQUATORIAL GUINEA

Mutamba Iroru Permit Working Interest 41% 270,000 gross acres 111,000 net acres Onshore Exploration & Development Etame Marin Permit Working Interest 28.1% 760,000 gross acres 213,000 net acres Offshore Production and Exploration

Libreville

GABON
Port Gentil

Luanda

ANGOLA Block 5 Working Interest 40.0% 1,400,000 gross acres 560,000 net acres Offshore Exploration

VAALCOs Profile
Key Metrics
Market Capitalization(1)
Cash Balance (Unrestricted)(2) Debt(2)

$360
$100 $ 11.2 98%

MM
MM MM MMBOE

Production (Net)(1)
Reserves (2P)(3) % Oil(3)

4,400 BOPD

% Operated(3)
Employees(1)

100%
100

(1) As of 12/10/2013 (2) As of 9/30/2013 (3) As of 12/31/2012

Efficient Reserve Replacement, Etame Marin Permit


Cost Metrics
(2002-2013)

Development Costs Exploration Costs DD&A

$14 /BBL $ 3 /BBL $ 9 /BBL


Gross EUR 1P Reserves
120.0

1P Reserves (MMBO)

100.0 80.0 60.0 40.0

20.0
0.0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

VAALCOs Reserves, Etame Marin Permit

3P Reserves (MMBO)
Proved Probable Possible

Reserves Breakdown
(As of 12/31/2012) (1)

27% 48% 25%

Proved Probable Possible TOTAL RESERVES

7.45 3.76 4.21 15.42

MMBO MMBO MMBO MMBO

(1) Based on the NSAI Independent Reserve Report

Oily and Leveraged to Brent


Realized Oil Price Per BBL Compared to Brent BBL (2012)
of Production Total % $Rev/Bbl 100.00% $115.00
$110.00 80.00% $105.00 60.00% $100.00

Oil / Gas Production

% Gas % Oil

40.00% 20.00%
$90.00 $85.00
$95.00

0.00%

Realized Oil Price Per BBL Compared to Brent BBL (2012)


$115.00 $110.00

$Rev/Bbl

$105.00 $100.00 $95.00

$90.00 $85.00

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Offshore Gabon Etame Marin Permit


Operator with a 28.1% net W.I.
Partners: Addax, Sasol, Tullow, Sojitz and PetroEnergy Ebouri

Oil production - 18,000 BOPD gross


4,400 BOPD net Etame

Cumulative production through Q3 2013 - 77.5 million barrels Construction of two new platforms underway Pursuing Etame Permit exploration opportunities and extension
Etame Marin Permit Working Interest 28.1%

SE Etame

Libreville Port Gentil

GABON

North Tchibala

Avouma

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Etame Expansion Project


New Etame Platform
$175 MM gross investment in the new platform
($49 MM net)

4 pile, 8 slot platform in water depth of 85 meters Initial 3 well development $25 MM gross per well
($7 MM net per well)

Develop 10 MMBOE incremental gross reserves


Installation in 2H 2014

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South East Etame / North Tchibala (SEENT Project)

New SEENT Platform


$150 MM gross investment in the new platform
($42 MM net)

4 pile, 8 slot platform in water depth of 85 meters


Initial 3 well development $25 MM gross per well
($7 million net per well)

Develop 7 MMBO reserves gross reserves

Installation in 2H 2014

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Project Delivery
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 Jacket SEENT Jacket

Etame Deck

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Offshore Gabon: Dimba Prospect


Expected spud December 2013 Gamba primary target Lucina secondary target 53m water depth A
10 km

3,000m well depth Dry Hole Cost - $19 MM gross ($8.5 MM net) Gamba 5-35 mmbo ~ gross recoverable Lucina 4-81 mmbo ~ gross recoverable A N

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Onshore Gabon: Mutamba Iroru Permit


NGongui discovery well drilled in Q4 2012 Encountered 49 feet of oil pay in the Gamba Formation 41% partner TOTAL operates the Atora Field 6 miles to the North Plan of Development underway for submittal to Gabon Government Negotiations currently in progress on establishing the production area and renewal of exploration acreage
Atora Field Cum: 38 MMBO NGongui Discovery Rabi Kounga Field Cum: 840 MMBO EUR 900 MMBO

Bende Field

Gamba-Ivinga Field Cum: 286 MMBO & 568 BCF EUR 350 MMBO

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Offshore Angola: Large Pre-salt Structures in the Kwanza Basin


VAALCO Block 5
VAALCO Loengo Prospect

VAALCO Prospect Loengo

VAALCO Lead Ombundi


~15 miles ~65 miles

Mobil Discovery Baleia -1A

Cobalt Discovery Lontra-1

Cobalt Discovery Mavinga-1

Cobalt Prospect

Cobalt Discovery Cameia -1

Cobalt Prospect

A
VAALCO Ombundi Lead

Cameia-2

Mobil Baleia-1A Cobalt Lontra-1 Cobalt Mavinga-1 Cobalt CAMEIA-1 & CAMEIA-2

Salt

Salt

Basement

Maersk AZUL-1

Basement

Block 5

Block 20

Block 21

Possible Oil Zone Confirmed Oil Zone

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Offshore Angola: Block 5 Prospects and Leads


Kindele Prospect
WD=101m Potential=20-28-49 MMbls

Jack Prospect
WD=75m Potential=22-33-55 MMbls

SW

Mubafo Discovery

NE

SW

NE

Block 5

Ombundi Lead
WD=500m+ Potential=100-400-760 MMbls

Atlantic Ocean NE
Post Salt Discovery Post Salt Prospect PreSalt Lead or Prospect

Loengo Prospect
WD=108m Potential=70-104-250 MMbls

SW

SW

NE

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Offshore Equatorial Guinea: Block P


Marathon 1,100 mmboe
Equatorial Guinea

Acquired 31% W.I. in 57,000 gross acres (PDA area) in November, 2012 2005 discovery Venus Working with GEPetrol (Operator) to develop a joint operatorship model
Exxon 1,300 mmboe

BLOCK P PDA

Two exploration wells expected to be drilled in the near future


Hess 600 mmboe

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Offshore Equatorial Guinea: Block P


Block P PDA

PDA Boundary 57,000 acres 232 km2


Marte 16-70 mmbo

Exploration Play Types


SW Grande Marte

Atlantic Ocean

Atlantic
SW Grande 10-180 mmbo Venus Field (17 - 21 mmbo)

Discoveries Prospects

A 20
20

Europa Discovery

VAALCO Summary
Strong high margin base business
Stable production profile 100% operated 98% oil leveraged to Brent

Near term low risk growth


Near field development opportunities Projects on time, on budget Attractive project economics

Long term growth strategy


In 3 out of top 4 West Africa producing countries Exposure in excess of 700 MMBOE unrisked net recoverable resource potential Need to balance exploration growth with acquisitions

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