VAALCO Energy announces the scheduled cessation of production and upcoming refurbishment of its FPSO vessel in Côte d’Ivoire.

Quiver AI Summary

VAALCO Energy, Inc. has announced the completion of a key milestone in its Côte d’Ivoire Floating Production Storage and Offloading vessel (FPSO) Dry Dock Refurbishment Project. The FPSO Baobab Ivoirien MV10, operated by Canadian Natural Resources International, ceased hydrocarbon production on January 31, 2025, with crude oil lifting scheduled around February 6, 2025. Mobilization efforts are underway to safely disconnect the FPSO, which will be towed to Dubai for refurbishment on March 24, 2025. CEO George Maxwell expressed satisfaction with the project’s progress, noting that the refurbishment will allow production to potentially continue until 2038, pending regulatory approvals. Vaalco highlighted the strong financial performance of its Côte d’Ivoire assets since acquisition, having already recouped 1.8 times its initial investment. More updates on the project are expected as it continues.

Potential Positives

• Announcement of the successful milestone of the FPSO Dry Dock Refurbishment Project, indicating effective project management and adherence to timelines.
• Expectation that the refurbishment will allow for continued production until at least 2038, which suggests long-term sustainability and profitability for the company.
• Highlighting that Vaalco has already received 1.8 times its initial net investment in Côte d’Ivoire, demonstrating strong financial performance and asset value growth.
• Reaffirmation of the company’s commitment to safety and operational excellence, which enhances its reputation and stakeholder confidence.

Potential Negatives

• Potential delays or issues with the FPSO refurbishment could disrupt production timelines and impact revenue, as the timeline for completion relies on regulatory approvals and further investment.
• The reliance on forward-looking statements indicates uncertainty in Vaalco’s future operations, which can create concerns for investors about the company’s projected performance and cash flow sustainability.
• The mention of potential unforeseen liabilities raises red flags regarding financial stability and transparency, suggesting possible risks that could affect the company’s operations and profitability.

FAQ

What is the significance of the FPSO Dry Dock Refurbishment Project?

The FPSO Dry Dock Refurbishment Project is crucial for maintaining production capabilities and operational excellence for Vaalco’s assets in Côte d’Ivoire.

When did the FPSO Baobab Ivoirien MV10 cease production?

The FPSO Baobab Ivoirien MV10 ceased hydrocarbon production as scheduled on January 31, 2025, as part of the refurbishment project.

What are the expected outcomes of the FPSO refurbishment?

Upon completion, the refurbishment is expected to allow production to continue until at least 2038, pending regulatory approvals.

Where will the FPSO be towed for refurbishment?

The FPSO will be wet towed to shipyards in Dubai for refurbishment after departing the field on March 24, 2025.

Who should be contacted for investor inquiries about Vaalco?

For investor inquiries, contact Vaalco Energy, Inc. at +00 1 713 543 3422 or visit their website at www.vaalco.com.

Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.

$EGY Insider Trading Activity

$EGY insiders have traded $EGY stock on the open market 1 times in the past 6 months. Of those trades, 1 have been purchases and 0 have been sales.

Here’s a breakdown of recent trading of $EGY stock by insiders over the last 6 months:

• GEORGE W.M. MAXWELL (Chief Executive Officer) purchased 4,500 shares for an estimated $21,060

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$EGY Hedge Fund Activity

We have seen 106 institutional investors add shares of $EGY stock to their portfolio, and 102 decrease their positions in their most recent quarter.

Here are some of the largest recent moves:

• TIETON CAPITAL MANAGEMENT, LLC removed 1,471,404 shares (-100.0%) from their portfolio in Q3 2024, for an estimated $8,445,858
• KEELEY-TETON ADVISORS, LLC added 861,563 shares (+inf%) to their portfolio in Q3 2024, for an estimated $4,945,371
• AMERICAN CENTURY COMPANIES INC added 775,576 shares (+27.6%) to their portfolio in Q3 2024, for an estimated $4,451,806
• DIMENSIONAL FUND ADVISORS LP added 738,485 shares (+82.5%) to their portfolio in Q3 2024, for an estimated $4,238,903
• FOUNDRY PARTNERS, LLC added 733,084 shares (+156.8%) to their portfolio in Q3 2024, for an estimated $4,207,902
• CHARLES SCHWAB INVESTMENT MANAGEMENT INC added 386,071 shares (+66.9%) to their portfolio in Q3 2024, for an estimated $2,216,047
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Full Release

HOUSTON, Feb. 03, 2025 (GLOBE NEWSWIRE) — VAALCO Energy, Inc. (NYSE: EGY; LSE: EGY) (“Vaalco” or the “Company”) is pleased to announce a significant milestone in its Côte d’Ivoire Floating Production Storage and Offloading vessel (“FPSO”) Dry Dock Refurbishment Project.

In alignment with the project timeline, the FPSO

Baobab Ivoirien MV10

, operated by Canadian Natural Resources International (“CNRI”), ceased hydrocarbon production as scheduled on January 31, 2025. The final lifting of crude oil from the vessel is set to take place on or around February 6, 2025.

The project team has commenced mobilization efforts, deploying the necessary workforce support vessels and equipment to facilitate the safe disconnection of the FPSO. The vessel is planned to be wet towed to the shipyards in Dubai for refurbishment upon departure from the field on March 24, 2025.

“We are pleased with the progress of this critical project and remain committed to ensuring a smooth and efficient transition for the FPSO disconnection and refurbishment which we expect, when complete, will allow production to continue until at least 2038, subject to the final regulatory approvals on the license extension and further investment,” said George Maxwell, Vaalco’s Chief Executive Officer. “This milestone represents another step forward in delivering on our strategic objectives while maintaining the highest standards of safety and operational excellence. We have already been paid back 1.8x

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our initial net investment in Côte d’Ivoire in the eight months since closing and the performance of the asset has tracked well ahead of our expectations at the time of the acquisition.”

Vaalco will provide further updates as the project progresses.

About Vaalco

Vaalco, founded in 1985 and incorporated under the laws of Delaware, is a Houston, Texas, USA based, independent energy company with a diverse portfolio of production, development and exploration assets across Gabon, Egypt, Côte d’Ivoire, Equatorial Guinea, Nigeria and Canada.

For Further Information

Forward Looking Statements

This press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created by those laws and other applicable laws and “forward-looking information” within the meaning of applicable Canadian securities laws. Where a forward-looking statement expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. All statements other than statements of historical fact may be forward-looking statements. The words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “forecast,” “outlook,” “aim,” “target,” “will,” “could,” “should,” “may,” “likely,” “plan” and “probably” or similar words may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements in this press release include, but are not limited to, statements relating to (i) estimates of future drilling, production, sales and costs of acquiring crude oil, natural gas and natural gas liquids; (ii) expectations regarding Vaalco’s ability to effectively integrate assets and properties it has acquired as a result of the Svenska acquisition into its operations; (iii) expectations regarding future exploration and the development, growth and potential of Vaalco’s operations, project pipeline and investments, and schedule and anticipated benefits to be derived therefrom; (iv) expectations regarding future acquisitions, investments or divestitures; (v) expectations of future balance sheet strength; and (vi) expectations of future equity and enterprise value.

Such forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by the forward-looking statements. These risks and uncertainties include, but are not limited to: risks relating to any unforeseen liabilities of Vaalco; the ability to generate cash flows that, along with cash on hand, will be sufficient to support operations and cash requirements; risks relating to the timing and costs of completion for scheduled maintenance of the FPSO servicing the Baobab field; and the risks described under the caption “Risk Factors” in Vaalco’s 2023 Annual Report on Form 10-K filed with the SEC on March 15, 2024 and subsequent Quarterly Reports on Form 10-Q filed with the SEC.

Inside Information

This announcement contains inside information as defined in Regulation (EU) No. 596/2014 on market abuse which is part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (“MAR”) and is made in accordance with the Company’s obligations under article 17 of MAR. The person responsible for arranging the release of this announcement on behalf of Vaalco is Matthew Powers, Corporate Secretary of Vaalco.

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Payback of 1.8x is based on unaudited operational cash flow for the Côte d’Ivoire assets compared to the acquisition price of $40.2MM as of 31st December 2024.

This article was originally published on Quiver News, read the full story.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.