VAALCO Energy, Inc. · NYSE:EGY
VAALCO Energy — Howard Weil 40th Annual Energy Conference 2012
31 slides from VAALCO Energy's conference presentation, March 2012
Slide 1: VAALCO Energy, Inc. Howard Weil 40th Annual Energy Conference
VAALCO Energy, Inc. Howard Weil 40th Annual Energy Conference March 26-29, 2012 Robert L. Gerry Chairman and Chief Executive Officer
Slide 2: Corporate Information / Safe Harbor Statement
Corporate Information Safe Harbor Statement Robert L. Gerry III This presentation includes “forward-looking statements” within the Chairman and meaning of Section 27A of the Securities Act of 1933, as amended, Chief Executive Officer and Section 21E of the Securities Exchange Act of 1934, as amended
Slide 3: Company Profile
Company Profile Resources and Market Data Reserve Data as of 12/31 2011 2010 Ticker (NYSE) EGY Proved & Probable Reserves (MBOE) 9,597 11,674 Employees - worldwide 94 Proved Reserves (MBOE) 6,368 6,918 *Market Capitalization ($MM) $503 Proved Developed Reserves (MBOE) 3,978 5,025 Management Ownershi
Slide 4: West Africa Focus
West Africa Focus Mutamba Iroru Permit 270,000 gross acres Onshore Exploration Etame Marin Permit 760,000 gross acres Offshore Production and Exploration Block 5 1,400,000 gross acres Offshore Exploration ANGOLA 4 VAALCO Energy, Inc.
Slide 5: Gabon: Etame Marin Permit
Offshore Gabon: Etame Marin Permit • VAALCO is the Operator with a 28.1% net W.I, in partnership with the Sinopec group (Addax), Sasol, Tullow, Sojitz and PetroEnergy • Production from three fields, all connected to an FPSO facility • Eleven wells currently producing • Oil production currently avera
Slide 6: Gabon: Etame Complex
Offshore Gabon: Etame Complex 6 VAALCO Energy, Inc.
Slide 7: Gabon: Etame Field
Offshore Gabon: Etame Field • Initial discovery made in 1998 • Field declared commercial in 2001; largest of the four fields • First oil production September 2002 • Production is from five wells with subsea completions • Current production is approximately 9,000 bopd gross • Expected completion in 2
Slide 8: Gabon: New Platform Construction
Offshore Gabon: New Platform Construction SE Etame Field New Etame Platform • Agreement by partners to enter detailed engineering phase • Up to 5 new well slots New Platform • Incremental reserves >10 Etam million bbls gross e Platf orm • Positive economics NPV(10) > $50 million gross SEEN T Platf •
Slide 9: Gabon: Avouma & South Tchibala Fields
Offshore Gabon: Avouma & South Tchibala Fields • Discovery well completed August 2004 • Production commenced in January 2007 • Three wells currently on production • Current production from fields is approximately 5,500 bopd gross • Water knock-out facilities are being fabricated and are expected to
Slide 10: Gabon: Ebouri Field
Offshore Gabon: Ebouri Field • Discovery well completed January 2004 • Platform installed August 2008 • First production began in January 2009; three wells currently producing from the platform • Current production is approximately 6,500 bopd gross • Platform modifications added three new slots • Tw
Slide 11: Floating Production, Storage and Offloading Facility
Floating Production, Storage and Offloading Facility FPSO “Petroleo Nautipa” • Operations began 2002 • Long-term contract with Tinworth through 2015 • 1.1 million barrel storage capacity • Can accept up to 30,000 barrels of total fluids per day • 25,000 bopd oil processing limit • 125 liftings throu
Slide 12: Gabon: Etame Marin Permit Exploration – Future Potential
Offshore Gabon: Etame Marin Permit Exploration – Future Potential 223 sq km 3D survey shot 4Q 2011; currently processing Elili Prospect • 30.35% WI • 116m water depth • Well depth: 3,500m; Dentale horizon • Estimated cost $22 million gross • 85 mmbo gross unrisked potential • Awaiting partner approv
Slide 13: Onshore Gabon: Mutamba Iroru Permit
Onshore Gabon: Mutamba Iroru Permit • Permit Area 270,000 acres Rabi Kounga Field 240 wells • Rabi Pipeline runs within SW Cum: 840 MMBO EUR 900 MMBO edge of permit • Executed farm-out agreement with TOTAL August 2010; retained 50% gross W.I. • Reprocessing of 400 km 2-D seismic completed Atora Fiel
Slide 14: Onshore Gabon: Prospects & Leads
Onshore Gabon: Prospects & Leads 14 VAALCO Energy, Inc.
Slide 15: Angola: Block 5 Exploration
Offshore Angola: Block 5 Exploration • 1.4 million acre license with water depths from 0-500m in northern part of Kwanza Basin • VAALCO is Operator with 40% working interest, Sonangol P & P 20% carried interest Up to 40% working interest currently available • Potential on-block gross reserves of >35
Slide 16: Angola: Block 5 Primary Prospects
Offshore Angola: Block 5 Primary Prospects Kindele/Mubafo Prospect • 40% WI • 100m water depth • Well depth: 2000m (post-salt) • $31 million gross cost • 50 mmbo gross unrisked potential Loengo Prospect • 40% WI Jack Prospect • 110m water depth • 40% WI • Well depth: 3800m (pre- and post-salt) • 80m
Slide 17: Angola: Kwanza Basin
Offshore Angola: Kwanza Basin – Republic of Angola VAALCO-operated Block 5 LOENGO Subsalt Prospect 330’ Water Depth Cobalt-operated Block 21 CAMEIA-1 Subsalt Discovery 5518’ Water Depth 1180’ of oil pay Tested to flow 5100 BOPD (facilities constrained) Maersk-operated Block 23 AZUL-1 Subsalt Discove
Slide 18: Angola: Kwanza Basin Analog with Campos Basin
Offshore Angola: Kwanza Basin Analog with Campos Basin 18 (Courtesy PGS) VAALCO Energy, Inc.
Slide 19: Onshore North America: Diversification
Onshore North America: Diversification • Strategy: Add new focus areas that provide multiple lower risk opportunities to expand reserves and cash flow that balances high potential, higher risk international exploration. • Parameters: – VAALCO operated preferred – Near areas of proven success – Multi
Slide 20: United States: Williston Basin/Bakken Shale Focus Area
United States: Williston Basin/Bakken Shale Focus Area Acreage • 27,200 gross acres in the Williston Basin (Montana) • 22,000 gross (14,300 net) acres in Roosevelt County; 65% W.I.; 80% NRI (East Poplar Dome) • 5,200 gross (3,650 net) acres in Sheridan County; 70% W.I.; 80% NRI (Salt Lake Prospect)
Slide 21: Williston Basin Outlook
Williston Basin Outlook Mid Case (IP-400 bopd): NREV, CAPEX, OPEX vs. Time 180.0 Mid Case Assumptions EXPENSES (CAPEX, OPEX, TAXES) IP ~ 400 BOPD NET REV 160.0 5 Wells drilled during 1st year (2012) 10 Wells drilled per year ( year 2 to 10) 140.0 120.0 100.0 $, (MM) 80.0 60.0 40.0 20.0 0.0 1 2 3 4 5
Slide 22: United States: East Poplar Dome Unit
United States: East Poplar Dome Unit • Acquired 22,000 gross acres from Magellan in September 2011 • Located in Roosevelt County Montana EPU # 120 (vertical) • Net Cost: $3.45 million • Depth: 9,200 ft • Middle Bakken and deeper • Target Zone: Red River formations • Intermediate Zones: − Bakken • 65
Slide 23: Williston Basin: Salt Lake Prospect
Williston Basin: Salt Lake Prospect • 5,214 gross acres – Salt Lake Prospect, Sheridan County, Montana • VAALCO – 70%; 3,650 Net acres • Middle Bakken formation with Three Forks formation potential • Approximately 100 million bbls in place associated with acreage • 5 – 10% recovery factor or approxi
Slide 24: United States: Salt Lake Prospect
United States: Salt Lake Prospect 24 VAALCO Energy, Inc.
Slide 25: United States: Granite Wash Formation
United States: Granite Wash Formation • 100% W.I. in 1,120 acres – Hemphill County, Texas • Leases located in prime area of formation; Chesapeake, Samson, Cimarex and Devon all active in the area • First well completed drilling early July; multi-stage frac completed August 2011 • In 2011, well produ
Slide 26: Granite Wash Hefley 90-01H: Adjacent Operations
Granite Wash Hefley 90-01H: Adjacent Operations 26 VAALCO Energy, Inc.
Slide 27: 2011 Capital Invested
2011 Capital Invested Gross Net GABON ‐ OFFSHORE $Millions $Millions Exploration • N Seismic Acquisition and Processing $ 7.3 $ 2.2 Development • Ebouri Platform Modifications 11.5 3.5 • Avouma Platform Modifications 10.0 3.0 • Capital Repairs/Spares 4.7 1.4 • Potential Platform Design Specs. For Po
Slide 28: 2012 Capital Budget
2012 Capital Budget Gross Net GABON ‐ OFFSHORE $Millions $Millions Exploration • Ebouri Platform Prospect $ 9.4 $ 2.7 Development • Ebouri Development Well 5H 23.6 6.6 • Ebouri Development Well 6H 22.9 6.4 • Ebouri Platform Modifications 2.5 0.7 • Avouma Development Well 2H 27.5 7.7 • Avouma Platfor
Slide 29: Pro-forma Consolidated Balance Sheets
Pro-forma Consolidated Balance Sheets • (amounts in thousands) 12/31/2011 12/31/2010 Assets Cash & cash equivalent $ 137,139 $ 81,234 Restricted cash 12,209 14,932 Accounts receivables 21,300 40,660 Other current assets 3,170 2,531 PP&E, net 99,848 96,820 Other non‐current assets 1,349 2,223 Total a
Slide 30: Pro-forma Income Statements
Pro-forma Income Statements • (amounts in thousands) 12 months 12 months ended ended 12/31/2011 12/31/2010 Revenues $ 210,436 $ 134,472 Operating costs and expenses (77,875) (56,349) Operating Income $ 132,561 $ 78,123 Other expense, net 1,436 (476) Income tax expense (93,468) (35,260) Net Income $
Slide 31: VAALCO - Summary
VAALCO - Summary • Stable production profile – 99% oil – 100% operated – Good development opportunities • Attractive reserve base – 99% oil – 62% proved developed • Strong balance sheet – No debt – 2012 budget expected to be funded with cash flow • Large acreage inventory in focus area – Field devel
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