Summary of VAALCO Energy Fireside Chat Company Overview - **Company**: VAALCO Energy - **Industry**: Oil and Gas Exploration - **Assets**: Located in Gabon, Egypt, Canada, Ivory Coast, and Equatorial Guinea - **Focus**: Short-cycle and long-cycle development projects, exploration prospects, and returning cash to shareholders [1][2] Key Points and Arguments Capital Expenditure (CapEx) and Production Outlook - **2025 CapEx Guidance**: Originally estimated at $270-$330 million, revised to $243 million, a 20% decrease from the original midpoint [3][4] - **Production Estimates**: NRI production midpoint increased to 16,500 BOE per day, a 6% increase from the original estimate [3] - **CapEx Savings**: Savings primarily from a softening commodity price, removal of $20 million in discretionary CapEx, and delays in drilling rigs [4][5] Production Performance - **Gabon Production**: Improved performance from the Etamé field, with significant contributions from the Ebouri well [5][6] - **Reservoir Performance**: 60% of production increase attributed to reduced back pressure and 40% to enhanced field performance [6] - **Reserve Revisions**: Anticipated significant revisions in reserves due to improved production performance, pending year-end evaluation [8] Efficiency Gains in Egypt - **Drilling Efficiency**: Completion of 14 new wells in 2025, exceeding the original plan of 8-13 wells, due to continuous rig operation and improved supply chain [9][10] - **Cost Management**: Enhanced drilling techniques and reduced downtime have allowed for more wells to be drilled with the same or lower capital [10] Gabon Drilling Program - **Upcoming Drilling**: Rig arrived on-site, with plans to spud the first well within 72-96 hours [14] - **Drilling Schedule**: Five firm wells and five optional wells planned, with a focus on minimizing rig moves [15][16] Côte d'Ivoire Developments - **FPSO Return**: Expected to return in late Q1 2026, with a 70-day plan for hookups and production restoration [27][28] - **Phase Five Development**: Targeting gross reserves of about 33 million BOE, with peak production of 27,000 BOE per day, likely impacting 2027 rather than 2026 [34] Equatorial Guinea Developments - **Venus Discovery**: Evaluating alternatives for development, including a subsea tieback to a shallower facility, which could expedite production [36][37] - **FID Timeline**: Potential for a Final Investment Decision (FID) in 2026, contingent on balancing capital expenditures [42] Strategic Focus - **Investment Strategy**: Emphasis on near-term production to enhance cash flow while balancing long-term greenfield developments [44][45] - **Longevity of Assets**: Commitment to investing in existing fields to maximize recovery and extend operational life [45][46] Operational Efficiency - **Cost Management**: Ongoing evaluation of operational costs and efficiencies, particularly in relation to FPSO upgrades and maintenance [30][31] Additional Insights - **Seismic Programs**: Planned seismic activities in Gabon to identify hydrocarbon systems and connectivity, expected to commence in late 2025 or early 2026 [25][26] - **Long-term Vision**: VAALCO aims to balance immediate cash returns with long-term growth opportunities, ensuring sustainability in operations [47][48] This summary encapsulates the key discussions and insights from the VAALCO Energy fireside chat, highlighting the company's strategic direction, operational performance, and future growth potential.