VAALCO Energy, Inc. · NYSE:EGY

VAALCO Energy — Shareholder Meeting (June 2007)

22 slides from VAALCO Energy's shareholder meeting presentation, June 2007

  1. Slide 1: Annual Shareholders Meeting June 2007

    VAALCO Energy, Inc. VAALCO Energy, Inc. Annual Shareholders Meeting June 2007

  2. Slide 2: Safe Harbor Statement

    VAALCO Energy, Inc. 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 other than statements of historical facts

  3. Slide 3: Interests in Africa

    VAALCO Energy, Inc. Interests in Africa

  4. Slide 4: Gabon: Etame Permit Overview

    VAALCO Energy, Inc. Gabon: Etame Permit Overview • Etame Area – VAALCO Share 28.07%, operator – Four wells, 14,000 BOE/day • Avouma Area – Platform in place, drilling completed – Production commenced in Jan. 07 – Two wells currently producing 6,500 BOE/day combined – 10,000 –12,000 BOE/day potential

  5. Slide 5: Etame Field-Producing Wells

    VAALCO Energy, Inc. Etame Field-Producing Wells

  6. Slide 6: Etame Production-Sub Sea Completions

    VAALCO Energy, Inc. Etame Production-Sub Sea Completions

  7. Slide 7: Avouma Producing Wells

    VAALCO Energy, Inc. Avouma Producing Wells • Exploration well completed August 2004 • 36 ft. of pay in Gamba sandstone Avouma Platform • Production commenced in January of 2007 • 2 wells currently on production • Production approximately 6,500 bbls. per day (combined from two wells)

  8. Slide 8: Avouma Platform

    VAALCO Energy, Inc. Avouma Platform • Three well slots (two currently drilled) • Electric submersible pumps to transfer oil to FPSO • $110 million capital project • VAALCO cost was $31 million

  9. Slide 9: Ebouri Discovery

    VAALCO Energy, Inc. Ebouri Discovery • Exploration well completed January 2004 • Logged 48 ft. of pay in Gamba sandstone • Platform under construction in Texas • First production 3rd quarter of 2008 • Estimated initial production 4,000 barrels per day

  10. Slide 10: Prospects & Leads – Etame

    VAALCO Energy, Inc. Prospects & Leads – Etame Lead M Lead J Lead A

  11. Slide 11: Etame Production-FPSO

    VAALCO Energy, Inc. Etame Production-FPSO • 1.1 million barrel capacity • 61 liftings through May 2007 • 28.7 million barrels sold to date • Engineering study underway to increase capacity

  12. Slide 12: Gabon Operations

    VAALCO Energy, Inc. VAALCO Gabon Operations

  13. Slide 13: Gabon: Mutamba Overview

    VAALCO Energy, Inc. Gabon: Mutamba Overview • Permit Area 1,094 sq kms, 270,327 acres • Rabi Pipeline runs within SW edge of permit • Aero magnetic & gravity survey Rabi Kounga Field • Shallow objectives (3,500 ft.) EUR 1.1 Billlion BO • Ten leads being investigated Gamba Field EUR 290 MMBO

  14. Slide 14: Mutamba

    VAALCO Energy, Inc. Mutamba • World class source and reservoir rocks • Shallow objectives (3,500 ft) • Geophysical challenges present opportunity – Last well drilled in 2000 – New geophysical software upgrading 2D – Aero magnetic survey June 2007 • Ten leads being examined

  15. Slide 15: Angola

    VAALCO Energy, Inc. Angola • 40% operated interest in Block 5, four-year permit off SW Angola effective 12/1/06 • Approximately 1.4 million acres • Sonangol estimates 50 million proven barrels with possible 500 million barrels • 12 wells • 7 dry wells • 5 reported oil and/or oil shows

  16. Slide 16: Block Prospectivity

    VAALCO Energy, Inc. Block 5 Prospectivity (ongoing VAALCO assessment) Block 5 ANGOLA ATLANTIC OCEAN 2000 3D outline 1997 3D outline

  17. Slide 17: VAALCO – Financial Results

    VAALCO Energy, Inc. VAALCO – Financial Results Net Income Revenues (millions) 45.0 100.0 40.0 90.0 35.0 80.0 70.0 30.0 60.0 25.0 98.3 40.3 50.0 20.0 84.9 40.0 29.2 15.0 56.5 22.9 30.0 10.0 35.5 20.0 8.9 5.0 10.0 9.4 0.5 0.0 0.0 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006

  18. Slide 18: New Ventures

    VAALCO Energy, Inc. New Ventures • North Sea • Corporate opportunities • Possible purchase of properties within VAALCO’s area of operations

  19. Slide 19: 2007 - 2008 Planned Budget

    VAALCO Energy, Inc. 2007 - 2008 Planned Budget Etame, Mutamba and Angola Block 5 Gross VAALCO Net Item $MM $MM Ebouri Platform/Facilities $ 63.0 $ 19.1 One Well $ 18.0 $ 5.5 Subtotal Ebouri (2007/2008) $ 81.0 $ 24.6 FPSO Modifications $ 10.0 $ 3.0 Seismic $ 15.0 $ 6.0 Five Exploration Wells $ 45.0 $

  20. Slide 20: VAALCO Today

    VAALCO Energy, Inc. VAALCO Today • Net Reserves as of 1/1/07 * 6.0 million BOE • Avg. daily production rate (net) * 4,800 BOE • 1Q07 Avg. Price/Barrel $57.07 • Cash in bank at 5/31/07 $70 million • 2007-2008 Capital Expenditures ** $56.6 million * Barrels of oil equivalent (BOE), net to VAALCO ** Ne

  21. Slide 21: Etame Permit: VAALCO In House Reserve Estimates

    VAALCO Energy, Inc. Etame Permit: VAALCO In House Reserve Estimates Gross Reserves Remaining VAALCO Net After Royalty (MMBO Recoverable) (MMBO Recoverable) Producing: Etame Field 25.8 6.3 Avouma/S Tchibala 10.1 2.5 Under Development: Ebouri 8.1 2.0 TOTAL Developed/Undeveloped 44.0 10.8 Exploration L

  22. Slide 22: VAALCO Energy, Inc.

    VAALCO Energy, Inc.

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