VAALCO Energy(EGY)2025-03-17 21:21Production Overview - Gabon segment produced approximately 2,783 MBoe, accounting for 38% of total production in 2024, with 100% being crude oil[42] - Egypt segment contributed approximately 2,585 MBoe, representing 35% of total production, also entirely crude oil[47] - Cote d'Ivoire segment produced approximately 1,058 MBoe, which is 15% of total production, with 100% being crude oil[50] - Canada segment produced approximately 870 MBoe, accounting for 12% of total production, with a mix of 40% crude oil, 29% natural gas, and 31% NGLs[54] - The company produced a total of 6,776 MBbl of crude oil in 2024, with an average production cost of 478.99 million[41] - The standardized measure of discounted future net cash flows increased to 341,934,000 in 2023[76] - The average sales price for crude oil in Canada for 2024 was 71.67 per Bbl in 2023[75] - The average price for natural gas in Canada decreased to 1.91 per Mcf in 2023[75] - The company estimates that a 12.9 million in Gabon for the year ended December 31, 2024[398] Reserves and Development - Estimated proved reserves as of December 31, 2024, totaled 45,018 MBoe, representing 100% of total reserves[41] - As of December 31, 2024, the total proved reserves amounted to 45,018 MBoe, consisting of 38,529 MBbls of crude oil and 22,631 MMcf of natural gas[73] - The company reported a total of 24,128 MBoe in proved undeveloped reserves at the end of 2024, an increase of 17.9 MMBoe from the previous year, primarily due to the acquisition of reserves from the Svenska Acquisition[81] - Significant development drilling is expected to begin in 2026 in Cote d'Ivoire after planned maintenance of the FPSO[53] - The Venus Plan of Development in Equatorial Guinea is on schedule, aiming for a Final Investment Decision by the end of Q2 2025[59] Employment and Diversity - As of December 31, 2024, VAALCO Energy had 230 full-time employees, with 119 in Gabon, 39 in Egypt, and 54 in Houston[95] - Approximately 19% of the management team are female employees, and 96% of the Gabon workforce is Gabonese[96] - The company emphasizes a pay-for-performance compensation philosophy to attract and retain talent[97] - VAALCO Energy's commitment to diversity includes a long-standing Equal Employment Opportunity policy[96] Regulatory and Compliance - The 2019 Hydrocarbons Law in Gabon mandates that foreign producers conduct operations through a company incorporated in Gabon[110] - The State of Gabon can acquire a maximum 10% equity stake in operators applying for or holding exclusive development and production authorization[114] - The Egyptian Ministry of Petroleum and Mineral Resources regulates the oil and gas industry, with all resources under the control of the State of Egypt[116] - Concession agreements in Egypt have the force of law and can last up to 30 years, overriding contradictory laws[117] - The concession agreements typically include minimum work and financial commitments, bonus payments tied to production milestones, and royalties payable to the government[118] Environmental and Climate Commitments - The Canadian government aims to achieve a 40-45% reduction in GHG emissions from 2005 levels by 2030, impacting the oil and gas sector[137] - The proposed regulations in Canada set a cap on GHG emissions within the oil and gas sector, equivalent to 35% below 2019 levels by 2030[137] - Gabon aims to comply with the Paris Agreement through its Climate Change Ordinance, which includes emission reduction targets and a zero flaring objective for gas[139] - Egypt's revised Nationally Determined Contribution (NDC) commits to a 65% reduction in emissions from the oil and gas sector (1.7 Mt CO2e) by 2030 and aims for 42% of electricity generation from renewable sources by 2035[139] - Côte d'Ivoire has committed to a 30.41% reduction in GHG emissions by 2030 as part of its revised NDC for 2021-2030[140] Financial Instruments and Debt - Outstanding derivative contracts include collars for 70,000 barrels of Dated Brent at an average price of 65.00 per Bbl and an average call price of $80.00 per Bbl[402] - As of December 31, 2024, the company had a zero balance outstanding on its Facility, indicating no current debt obligations[403] - The 2025 Facility Agreement includes loans that will bear interest at a rate of Term SOFR plus an applicable margin of 6.50% until certain completion tests are met, after which the margin will decrease to 6.00%[403] - Increases in interest rates under the 2025 Facility Agreement could adversely impact the company's results of operations and cash flows[403]