Vaalco Energy, Inc. · NYSE:EGY
Vaalco Energy — Shareholder Meeting (June 2011)
23 slides from Vaalco Energy's shareholder meeting presentation, Jun 1, 2011
Slide 1: Annual Meeting of the Shareholders
VAALCO Energy, Inc. Annual Meeting of the Shareholders June 1, 2011 Robert L. Gerry III, Chief Executive Officer and Chairman of the Board of Directors
Slide 2: Corporate Information and Safe Harbor Statement
Corporate Information Safe Harbor Statement This presentation includes “forward-looking statements” within the Robert L. Gerry III meaning of Section 27A of the Securities Act of 1933, as amended, Chairman and and Section 21E of the Securities Exchange Act of 1934, as Chief Executive Officer amended
Slide 3: Company Profile
Company Profile Resources and Market Data Reserve Data as of 12/31 2010 2009 Ticker (NYSE) EGY Proved & Probable Reserves (MBOE) 11,674 12,940 Employees 90 Proved Reserves (MBOE) 6,918 7,363 *Market Capitalization ($MM) $402 Proved Developed Reserves (MBOE) 5,025 4,795 Management Ownership 6% Proved
Slide 4: Current Focus Areas: West Africa
Current Focus Areas: West Africa Mutamba Iroru Permit 270,000 gross acres Onshore Exploration Etame Marin Permit 760,000 gross acres Offshore Production and Exploration Block 5 1,400,000 gross acres Offshore Exploration ANGOLA 4 VAALCO Energy, Inc.
Slide 5: Offshore Gabon: Etame Marin Permit
Offshore Gabon: Etame Marin Permit • VAALCO is the Operator with a 28.1% net W.I, in partnership with the Sinopec group (Addax), Sasol, Tullow, Sojitz and PetroEnergy • Production from four fields, all connected to an FPSO facility • Ten wells currently producing • Additional development and explora
Slide 6: Offshore Gabon: Etame Stratigraphic Column
Offshore Gabon: Etame Stratigraphic Column Top Seal Reservoirs Source Rock 6 VAALCO Energy, Inc.
Slide 7: Offshore Gabon: Etame Complex
Offshore Gabon: Etame Complex 7 VAALCO Energy, Inc.
Slide 8: Offshore Gabon: Etame Field
Offshore Gabon: Etame Field • Initial discovery made in 1998 • Field declared commercial in 2001; largest of the four fields FPSO • First oil production September 2002 • Production is from five wells with subsea completions • Current production is approximately 9,000 bopd gross • Completed drilling
Slide 9: Floating Production, Storage and Offloading Facility
Floating Production, Storage and Offloading Facility FPSO “Petroleo Nautipa” • Operations began 2002 • Long-term contract with Tinworth through 2015 • 1.1 million barrel storage capacity • Can accept up to 30,000 barrels of total fluids per day • 25,000 bopd oil processing limit • 115 liftings throu
Slide 10: Offshore Gabon: Avouma & South Tchibala Fields
Offshore Gabon: Avouma & South Tchibala Fields • Discovery well completed August 2004 • Production commenced in January 2007 • Three production wells on platform – third well off-line until mid-2011 for electrical upgrades to enable all wells to run concurrently on ESP’s • New South Tchibala horizon
Slide 11: Offshore Gabon: Ebouri Field
Offshore Gabon: Ebouri Field • Discovery well completed January 2004 • Platform installed August 2008 • First production began in January 2009; three wells currently producing from the platform • Current production is approximately 6,500 bopd gross • In 2010, successfully completed 4-H development w
Slide 12: Offshore Gabon: Etame Field Expansion Study
Offshore Gabon: Etame Field Expansion Study • Intensive study undertaken to focus on future development opportunities in the Etame field • Final results were reviewed with partners in early 2011 • VAALCO is proceeding with the detailed plans which may lead to a new platform for drilling additional d
Slide 13: Offshore Gabon: SE Etame Discovery
Offshore Gabon: SE Etame Discovery • Discovery well 2 miles SE of Etame Field drilled to depth of 9050 feet - June 2010 • Encountered 16 feet of Gamba sandstone; logged oil full to base • Appraised with two sidetracks • Options being evaluated include possible joint development with the N. Tchibala
Slide 14: Offshore Gabon: Etame Marin Permit Exploration Potential
Offshore Gabon: Etame Marin Permit Exploration – Future Potential Permit Area Ebouri Field Etame Field SE Etame Field North Tchibala Field 2010-2011 3D Survey Outline (Dentale, Undeveloped) Avouma and S. Tchibala Fields Elili Prospect • 30.35% WI • 116m water depth • Well depth: 3,500m • $22.3 milli
Slide 15: Onshore Gabon: Mutamba Iroru Permit
Onshore Gabon: Mutamba Iroru Permit • Permit Area 270,000 Rabi Kounga Field 240 wells acres Cum: 840 MMBO EUR 900 MMBO • Rabi Pipeline runs within SW edge of permit • Executed farm-out agreement with TOTAL August 2010; retained Atora Field 50% gross W.I. 11 wells Cum: 38 MMBO • Currently reprocessin
Slide 16: Offshore Angola: Block 5 Exploration
Offshore Angola: Block 5 Exploration • 1.4 million acre license with water depths from 0-500m in northern part of Kwanza Basin • VAALCO is Operator with 40% working interest, Sonangol P & P 20% carried interest Up to 40% working interest currently available • Potential on-block reserves of 350 MMBO+
Slide 17: Offshore Angola: Block 5 Primary Prospects
Offshore Angola: Block 5 Primary Prospects Kindele/Mubafo Prospect • 40% WI • 100m water depth • Well depth: 2000m • $31 million gross cost • 50 mmbo gross unrisked potential Loengo Prospect • 40% WI Jack Prospect • 110m water depth • 40% WI • Well depth: 3800m • 80m water depth • $35 million gross
Slide 18: Offshore Angola: Kwanza Basin Analog with Campos Basin
Offshore Angola: Kwanza Basin Analog with Campos Basin 18 (Courtesy PGS) VAALCO Energy, Inc.
Slide 19: Offshore Angola: Block 5 Farm-in Opportunity
Offshore Angola: Block 5 Farm-in Opportunity • Former partner exited from Block in December 2010 • Two well drilling commitment - one year extension granted - planning to drill in Q4 2011 • Working with Sonangol to find replacement partner and to obtain further time extension, if necessary • Moving
Slide 20: Onshore North America: Diversification
Onshore North America: Diversification • Strategy: Add new focus area that provide multiple lower risk opportunities to expand reserves and cash flow that balances high potential, higher risk international exploration. • Parameters: – VAALCO operated preferred – Near areas of proven success – Multip
Slide 21: United States: Granite Wash Formation
United States: Granite Wash Formation • 100% W.I. on 640 acre lease – Hemphill County, Texas • Lease located in prime area of formation; Chesapeake, Samson, Cimarex and Devon all active in the area • First well spudded May 9, 2011; 45 days to drill with multi-stage fracs expected to follow in June 2
Slide 22: United States: Bakken Shale
United States: Bakken Shale • 5,214 gross acres – Salt Lake Prospect, Sheridan County, Montana • VAALCO – 70%; 3,650 Net acres • Middle Bakken formation with Three Forks formation potential • Approximately 100 million bbls in place associated with acreage • 5 – 10% recovery factor or approximately 5
Slide 23: VAALCO - Summary
VAALCO - Summary • Stable production profile – 99% oil – 100% operated – Good development opportunities • Attractive reserve base – 99% oil – 73% proved developed • Strong balance sheet – No debt – 2011 budget expected to be funded with cash flow • Large acreage inventory in focus area – Field devel