CORRECTION – VAALCO Energy, Inc. Provides Positive Additional Information Regarding Its Acquisition Of Svenska

Core Insights - VAALCO Energy, Inc. has reported a significant increase in its SEC net proved reserves as of December 31, 2023, totaling 16.9 million barrels of oil equivalent (MMBOE), up from 13.0 MMBOE as of October 1, 2023 [1][9] - The company's 2P working interest CPR reserves have also increased to 22.5 MMBOE from 21.7 MMBOE, indicating a positive trend in reserve estimates [2][8] - The acquisition of Svenska Petroleum Exploration AB has proven to be strategically beneficial, expanding VAALCO's focus in West Africa and providing substantial future development opportunities [8][14] Reserves and Financial Metrics - The discounted value of future cash flows from the 2P reserves as of December 31, 2023, is estimated at $240.9 million, based on pricing assumptions of $79.79 per barrel in 2024 and $69.79 in 2025, with a 2% inflation rate thereafter [2][20] - VAALCO's Standardized Measure of the SEC proved reserves is reported at $195.5 million, reflecting a pro-forma total of 45.6 MMBOE, which is a 59% increase from the previously reported 28.6 MMBOE [9][18] - The net purchase price for the acquisition of Svenska was $40.2 million, translating to approximately $2.37 per net proved barrel of reserves [9][14] Contingent Resources - Significant upside potential has been identified from contingent resources at the Baobab field, with a Best Estimate Working Interest Contingent Resources (2C) of 20.4 MMBOE [1][12] - The contingent resources are contingent upon the approval of a development plan and the successful addressing of various contingencies [12][21] Strategic Implications - The acquisition of Svenska is viewed as highly accretive to key metrics for VAALCO's shareholder base, enhancing the company's asset portfolio and supporting future growth [8][14] - The strategic focus on Côte d'Ivoire is highlighted as a well-established and investment-friendly environment for further development opportunities [8]