VAALCO Energy, Inc., an independent energy company focused on development and production assets in West Africa, today announces its formal intention to seek a Standard Listing on the Main Market of London Stock Exchange (”LSE”), to complement its existing Listing on the New York Stock Exchange.
- VAALCO is an established operator with a proven track record in West AfricaOperator of the Etame Marin Block located offshore Gabon (31.1% working interest), that has produced circa 110 million gross barrels since first sale of oil in November 2002.
- Net production (after royalty deduction) of 3,664 barrels of oil per day (“BOPD”) as at Q2 2019.
- Strategic focus on generating free cash flow from a low risk reserve base.
- Active work programme at Etame in 2019/20 recently underway to grow production and reserves, with up to three development wells and two appraisal wellbores to be drilled within the next 12 months (“Work Programme”).
- Reserves and resources of ~123 million gross barrels of oil (“MMBBL”) at Etame.
- Significant development opportunities and leads at or near existing platforms where infrastructure is in place to bring new production online quickly, further enhancing economics.
- Diversified portfolio with exploration and development potential from Block P, offshore Equatorial Guinea (31.0% working interest).
- Solid financial footing with no debt and $48.6 million of cash and cash equivalents at 30 June 2019.
- Actively pursuing M&A opportunities within strategic focus areas.
- Obtaining dual-listing on Main Market of LSE to broaden shareholder base and access future capital to support growth strategy.
- Anticipating the Listing will occur by 30 September 2019.
- Shares will trade under the ticker EGY and the expected market capitalisation on Admission will be circa $100m.
Cary Bounds, VAALCO’s Chief Executive Officer commented: “Since 2017, our strategy has been clearly focused on strengthening the core foundations of the Company and preparing it for sustainable, long-term growth. We have successfully delivered a number of material developments that have secured and enhanced the future for VAALCO, enabling us to embark on this dual-listing from a position of strength.
VAALCO has an enviable position for a company of its size in terms of its debt-free balance sheet and strong cash position. This allows us to self-fund our active work programme that has recently commenced, and will provide multiple catalysts in the coming year as we look to enhance production and realise upside from our proven reserves and resources.
The London Listing makes strong strategic sense in terms of obtaining a dual-listing on another leading international exchange with a sophisticated understanding of investment propositions and assets within VAALCO’s West Africa focus. We hope to use the Listing as a springboard to achieve our ambitious medium-term organic and inorganic growth objectives.”