Vaalco Energy (NYSE: EGY): Good 4Q24 WI production and sales
• 4Q24 WI production and sales were respectively 24.7-25.2 mboe/d and 23.6-24.1 mboe/d; which is in the middle of the guidance range of 23.8-26.7 mboe/d for production and 22.9-25.3 mboe/d for sales.• 2025 should be an important year for value creation with potential reserves additions in Gabon and the FPSO upgrade in Cote d’Ivoire.
• The detailed 2025 programme will be disclosed by March. In addition to the FPSO maintenance and upgrade in Cote d’Ivoire allowing the restart of production in the country in 2026, it will also include a seven well drilling programme in Gabon starting mid-2025 and 10-13 new wells in Egypt.
• The focus will be on execution with two large drilling and redevelopment programmes running in parallel. Vaalco's strong execution capabilities were demonstrated during the reconfiguration of the surface infrastructure at Etame Marin in Gabon.
• We currently carry a total of ~20 mmbbl of contingent resources in Gabon. These are associated with the redevelopment of the Ebouri field plus the extension of production from Etame Marin beyond 2028. Our total unrisked NAV for these resources is US$2.18 per share.
• The redevelopment programme in Cote d’Ivoire could include some contingent resources. We currently carry 20 mmbbl contingent resources for Baobab with an unrisked NAV of US$1.14 per share.
• We re-iterate our target price of US$10 per share in line with our ReNAV.
Valuation
Our ReNAV is ~US$9.52/sh. Our combined unrisked NAV for Ebouri, Kossipo, the contingent resources at Baobab, the exploration programme in Canada and the contingent resources in Egypt is US$7.36 per share.
VAALCO Energy is an independent energy company engaged in the acquisition, exploration, development and production of crude oil. The company is primarily engaged in its Etame Production Sharing Contract related to the Etame Marin block located offshore the Republic of Gabon in West Africa. The company also owns interests in an undeveloped block offshore Equatorial Guinea, West Africa.
Auctus Advisors is a specialist Equity Capital Markets and Advisory business with a focus in the Energy Sector.
The partners have complementary skill sets, with decades of experience across Equity Capital Markets, Investment Banking and the Energy industry. We have worked at Société Générale, Canaccord Capital, BMO Capital Markets and Schlumberger. Most recently we have worked together for many years at GMP FirstEnergy.
Auctus has been set up at the beginning of a new decade in which we see significant opportunities in the Energy space. Globally, demand for energy is at record levels and continues to grow. Conversely, investment in traditional energy sources has been severely constrained. We believe this imbalance creates opportunities for both companies and investors.
Auctus provides Corporate Broking, Equity Research and Investment Banking services.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.