vaalco 26-november-2013 presentation

8/13/2019 VAALCO 26-November-2013 presentation

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Steven GuidryChief Executive Officer

Africa Oil Week10thAfrica Independents ForumCape Town, South Africa

November 26, 2013

Operat ions and Future Exp loration

in West Afr ica


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Safe Harbor Statement

This presentation includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E ofthe Securities Exchange Act of 1934, as amended. All statements included in this presentation that address activities, events or developments that VAALCOexpects, believes or anticipates will or may occur in the future are forward-looking statements. These statements include expected capital expenditures,

future drilling plans, objectives and operations, prospect evaluations, negotiations and relations with governments and third parties, reserve growth,estimated revenues and losses, and projected costs, timing and amount of future production. These statements are based on assumptions made byVAALCO based on its experience perception of historical trends, current conditions, expected future developments and other factors it believes areappropriate in the circumstances. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond VAALCO'scontrol. These risks include, but are not limited to, inflation, general economic conditions, oil and gas price volatility, the VAALCO's success in discovering,developing and producing reserves, lack of availability drilling equipment and services, availability of and capital, environmental risks, drilling risks, foreignoperational risks, regulatory changes, the uncertainty inherent in estimating reserves and in projecting future rates of production, cash flow and access tocapital, the timing of development expenditures, and other risks. Additional information on risks and uncertainties that could affect our business prospectsand performance are provided in the most recent reports of VAALCO filed with the Securities and Exchange Commission. These forward-looking statementsare based on VAALCOs current expectations and assumptions about future events and are based on currently available information as to the outcome andtiming of future events. VAALCO cautions you that forward-looking statements are not guarantees of future performance and that actual results ordevelopments may differ materially from those projected in the forward-looking statements. VAALCO disclaims any intention or obligation to update or reviseany forward-looking statements, whether as a result of new information, future events, or otherwise.

The SEC requires oil and gas companies, in their filings with the SEC, to disclose proved reserves that a company has demonstrated by actual production orconclusive formation tests to be economically and legally producible under existing economic and operating conditions. VAALCO uses the terms estimatedultimate recovery, EUR, probable, 3P, possible, and non-proven reserves, reserve potential or upside, unrisked potential or other descriptions ofvolumes of reserves potentially recoverable through additional drilling or recovery techniques that are not classified as proved reserves, may not have beencalculated as defined by SEC regulations and that the SECs guidelines may prohibit us from including in any future filings w ith the SEC. These estimatesare by their nature more speculative than estimates of proved reserves and accordingly are subject to substantially greater risk of being actually realized bythe company. VAALCO believes these estimates are reasonable, but such estimates have not been reviewed by independent engineers. Estimates maychange significantly as development provides additional data, and actual quantities that are ultimately recovered may differ substantially from prior estimates.Production forecasts are dependent upon many assumptions, including estimates of production decline rates from existing wells and the outcome of futuredrilling activity. Although VAALCO believes the forecasts are reasonable, VAALCO can give no assurance they will prove to have been correct. They can be

affected by inaccurate assumptions and data or by known or unknown risks and uncertainties.

Market and industry data and forecasts used in this presentation have been obtained from independent industry sources as well as from research reportsprepared for other purposes. Although VAALCO believes these third-party sources to be reliable, VAALCO has not independently verified the data obtainedfrom these sources and VAALCO cannot assure you of the accuracy or completeness of the data. Forecasts and other forward-looking information obtainedfrom these sources are subject to the same qualifications and uncertainties as the other forward looking statements in this presentation.

Inquiries:

VAALCO Energy, Inc.

Attn: Gregory R. Hullinger

4600 Post Oak Place, Suite 300

Houston, TX 77027

Ph: 713-623-0801
http://www.vaalco.com/


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Strong high margin base business Near term low risk growth opportunities Balanced long term growth strategy

Near fieldDevelopment

Current West AfricaExploration

Program

Transformational

Transaction


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1985: Founded in Houston by Virgil AWALSTON and Charles ALCORN

1986: Acquired operating interests in four fields offshore

Palawan, Philippines (as Alcorn International)

1992: Brought on stream West Linapacan Field - first deep waterproduction (1140ft) in ASEAN

1995: Signed Etame Marin Permit PSA, Offshore Gabon

1998: Etame Field discovery (Etame Marin Permit) 2002: First oil from Etame Field

2004: Ebouri, Avouma discoveries (Etame Marin Permit)

2005: Signed PSA in Mutamba Iroru, Onshore Gabon

2006: Signed PSA in Block 5 Offshore Angola

2006: Listed on the NYSE

2007-2009: Avouma and Ebouri Platforms installed and production commenced

2011: South East Etame Field discovery (Etame Marin Permit)

2012: N Gongui Field discovery (Mutamba Iroru Permit)

2012: Signed PSA in Block P Offshore Equatorial Guinea


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Block 5Work ing Interest 40.0%

1,400,000 gross acres560,000 net acres

Offshore Exploration

Mutamba Iroru PermitWork ing Interest 41.0%

270,000 gross acres111,000 net acres

Onshore Exploration& Development

Etame Marin PermitWork ing Interest 28.1%


Offshore Productionand Exploration

Block PWork ing Interest 31.0%


Offshore Exploration& Development

GABON

Port Gentil

Libreville

Luanda

ANGOLA

EQUATORIAL

GUINEA

Bata


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(1) As of 11/21/2013(2) As of 9/30/2013(3) As of 12/31/2012

Key Metrics

Market Capitalization (1) $ 330 MM

Cash Balance (Unrestr icted) (2) $ 100 MM

Debt (2) $ --- MM

Production(net)

(1)

4,400 BOPDReserves (2P) (3) 11.2 MMBOE

% Oil (3) 98%

% Operated (3) 100%

Employees (1) 100


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Cost Metrics (2002-2013)

Development Costs $ 14 /BBL

Exploration Costs $ 3 /BBL

DD&A $ 9 /BBL

0

5,000

10,000

15,000

20,000

25,000

ETAME Marin Gross Production

Etame Original Forecast Etame Base Actual Etame Addit ional Actual Avouma EbouriBOPD

0.0

20.0

40.0

60.0

80.0

100.0

120.0

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

1PRese

rves(MMBO)

Gross EUR 1P Reserves


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Reserves Breakdown(As of 12/31/2012) (1)

Proved 7.45 MMBOProbable 3.76 MMBO

Possible 4.21 MMBO

Total Reserves 15.42 MMBO

48%

25%

27%

3P Reserves (MMBO)

Proved Probable Possible

(1) Based on the NSAI Independent

Reserve Report


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$85.00

$90.00

$95.00

$100.00

$105.00

$110.00

$115.00

$Rev/Bbl

Realized Oil Price Per BBLCompared to Brent BBL (2012)

0.00%

20.00%

40.00%

60.00%

80.00%

100.00%

Total%o

fProduction

Oil / Gas Production

% Gas

% Oil

Comparison Group:Other Operators in Gabon:


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New Etame Platform $175 MM gross investment

($49 MM net to VAALCO) in thenew Etame platform will resultin improved drainage efficiency

Develop 10 MMBOEincremental reserves Initial 3 well development with

additional wells likely, at $25MM gross per well ($7 millionnet to VAALCO)

4 pile, 8 slot platform in waterdepth of 85 meters

Installation in 2H 2014


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New SEENT Platform $150 MM gross investment

($42 MM net to VAALCO) in thenew platform will commercializethe previously discoveredresource

Develop 7 MMBO reserves Initial 3 well development with

additional wells likely, at $25MM gross per well ($7 millionnet to VAALCO)

4 pile, 8 slot platform in waterdepth of 85 meters

Installation in 2H 2014


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Construction of Etame and SEENT platforms on schedule for 2H 2014 installation

Total investment of Etame and SEENT projects $544 MM gross ($152 million net)

Facilities - $ 325 MM Wells - $ 219 MM

Etame

JacketSEENT

Jacket

Etame

Deck

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Expected spud December 2013 Gamba primary target; Melania secondary target 53m water depth 3,000m well depth Dry Hole Cost - $8.5 mm net

Gamba 5-35mmbo ~ gross unrisked recoverable Lucina 4-81mmbo ~ gross unrisked recoverable

10 kmAA

N

A

A


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Gamba-Ivinga FieldCum: 286 MMBO & 568 BCF

EUR 350 MMBO(From IHS)

NGonguidiscovery welldrilled in Q4 2012

Encountered 49 feet of oilpay in the Gamba Formation

50% partner TOTALoperates the Atora Field6 miles to the North

Plan of Developmentunderway for submittal toGabon Government

Negotiations currently in

progress on establishing aproduction area and renewalof exploration acreage

Bende Field

Atora FieldCum: 38 MMBO

Rabi Kounga FieldCum: 840 MMBO

EUR 900 MMBO

NGongui Discovery

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Offshore Angola: Large Pre-sal t Structures in the Kw anza Basin

Loengo

VAALCOProspect

Limits ofKwanza Basin

MaerskAZUL-1

CobaltMavinga-1

CobaltCAMEIA-1 & CAMEIA-2

CobaltLontra-1

VAALCOLoengo Prospect

VAALCOOmbundi Lead

Block 5

Atlantic

Ocean

MobilBaleia-1A

A

A

A A

Block 5 Block 20 Block 21

Ombundi

VAALCOLead

Baleia -1A

MobilDiscovery

Lontra-1

CobaltDiscovery

CobaltDiscovery

Mavinga-1

CobaltProspect

Cameia -1

CobaltDiscovery

Cameia-2

CobaltProspect

Possible Oil Zone

Confirmed Oil Zone

Basement

Salt

Basement

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VAALCOBlock 5

Salt

~15 miles ~65 miles


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PreSalt Lead or Prospect

Post Salt Prospect

Block 5

Atlantic

Ocean

Mubafo Discovery

Ombundi LeadWD=500m+ Potential=100-400-760 MMbls

NE NE

NENE

Loengo ProspectWD=108m Potential=70-104-250 MMbls

Jack ProspectWD=75m Potential=22-33-55 MMbls

Kindele ProspectWD=101m Potential=20-28-49 MMbls

SW

SW SW

SW

Offsho re Angola: Bloc k 5 Prospects and Leads

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Post Salt Discovery


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VAALCO in November 2012,acquired 31% workinginterest in 57,000 grossacres (PDA area)

Block has 2005 discoveryVenus is believed to be

commercial as a standalonedevelopment project

VAALCO is working withGEPetrol (Operator) todevelop a joint operatorshipmodel

Exploration upside

Two exploration wellsexpected to be drilled in thenear future

Marathon1,100 mmboe

Exxon1,300 mmboe

Equatorial

Guinea

Block PPDA

Hess600 mmboe

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Cameroon


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Atlantic

Atlantic

Ocean

PDABoundary

57,000 acres232 km2

Block PPDA

Discoveries

Prospects

SW Grande

Europa Discovery

Venus Field

(17 - 21 mmbo)

Marte

A

A

Exploration Play TypesSW

Grande Marte

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Strong high margin base business

100% operated

98% oil - leveraged to Brent

Stable production profile

High qualitylow risk near term growth

Projects on time, on budget

Near field development opportunities

Attractive project economics

Long term growth strategy

In 3 out of top 4 West Africa producing countries

Balancing exploration growth with acquisitions

Exposure in excess of 700 MMBOE Net Unrisked Resource Potential

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In Gabon: La Direction Generale des Hydrocarburesand

Our partners in Etame Marin PermitAddax, Sasol, Tullow, Sojitz andPetroenergy

Our partner in Mutamba Iroru PermitTOTAL Gabon

In Angola: Sonangol EPand

Our Partner in Block 5 - Sonangol P&P (carried interest)

In Equatorial Guinea: Ministry of Mines, Industry and Energy and

Our partners in Block P - GEPetrol, Atlas, Crown

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Thank Youfor Your

Attention

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vaalco 26-november-2013 presentation

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