EGY - Earnings call transcript Q3 2020

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Operator

Good morning and welcome to the VAALCO Energy, Inc.

Third Quarter 2020 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. Please note this event is being recorded. to Coordinator. conference like Petrie, to now Relations Investor would turn over the Al I ahead. go Please

Al Petrie

closing Thank return you, I provide will morning, Officer results. Quarter review. statements, Elisa. Liz Good financial Bounds, a will XXXX for Energy's to Cary take will your comments Chief along Cary Conference more Third review VAALCO Prochnow, key before in-depth Call. with Chief our we then After our cover some highlights forward-looking everyone, the then Executive and operational welcome Officer, Financial questions.

ask During session, to Q&A to our questions one a we you limit follow-up. your and

has You point financial guidance and should queue out the investor forward-looking analysis, with be to posted that that, let comments. helpful. we our I’d that an with updated like website can me additional always that statement our proceed deck comparisons additional re-enter on With questions. morning this

the is this filed you call this new press XX-Q that yesterday's release, on Accordingly, future and and Investors information, those note are the the being any yesterday. Form revise events statements be of results obligation undue the of are the or the on Please that or will that those from SEC, in filed may described making conference or statements VAALCO in with the website statements. forward-looking should or forward-looking in company reliance intention to other that actual whether our place not developments morning statements. any call, differ otherwise. forward-looking was as not result performance, reports a conference forward-looking of update cautioned and materially During including posted risks this statements. recorded. projected we These forward-looking future course disclaims guarantees are presentation

Let the Cary. over me call to turn

Cary Bounds

Thus has from to faced morning, as demand everyone. supply extraordinary our challenges imbalances to the difficult call. earnings XXXX conference prices, Good third COVID-XX VAALCO This many Thank industry challenges. a we to VAALCO’s eight global been to now. welcome the have COVID-XX impacted responded quarter low operated been materially well commodity And which we is approximately our year for by Al. dedicated have you, energy measures and that has not precautionary far platforms under operations for testament our these months all to the workforce given have of pandemic,

the managed We and logistical continue challenges have of through put first. employees, we outbreak stakeholders the to since that contractors and faced have the our local safety occurred

in using monitor medical We’re going before minimizing offshore. test high screen, quarantine activities to risk supervision contractors and onsite and while and employees

place pandemic. in directly in event the by plans contingency impacted have the we’re We

We costs and continue vessels and to sharing work with cost operators measures implement helicopters. our to by to other with reduce such equipment as vendors and and services suppliers support partner cutting

and minimal can production As we've said XX% before, improve costs and increase of are fixed our cost. our add margins in with we approximately

Our net X,XXX a campaigns produced midpoint of which right allowing the will continue remain drilling per was time. cash generate at flow guidance at production cash quarter, flow have generation, lower In which to and We our lead excellence third an of solid strong and barrels to EBITDAX. on future operational us costs we for the helped focused average range. us to oil prepare day, adjusted to of

XXXX-XXXX online the our XX% Our production of XXXX three as successful from of a third as of up drilling XXXX result wells quarter part new program. same in was the came quarter that

maintenance the XXXX planned second day was full-field due of However, mandate. below shutdown oil to our and quarter net production an quarter the production average OPEC+ September, due in of barrels curtailment third X,XXX to per our

its platforms. assist Etame. The or performed environmental production on maintenance all OPEC+ production and on importantly perform in no on by In we to five our budget time, turnaround call, both turnaround meeting were conference to Gabon Nautipa most safety we As performed at day September, temporarily planned was we incidents. discussed in four quota our and production last asked the with curtailing FPSO

oil Looking the between which expect per up net fourth day of ahead, quarter. the and to barrels third X,XXX XXX oil quarter, to we day X,XXX VAALCO in barrels is produce of to somewhere XXX versus per

You in quarter X,XXX the to last oil call. note we that will guidance quarter the gave for estimate X,XXX day per during barrels increased new end we of of X,XXX range of our have oil the per that lower X,XXX fourth fourth from in day of our the barrels to

the production to difficult which the confirming recorded and million. curtailments adjusted environment. our drilling see third an far free oil in cash $XX.X EBITDAX continue year-to-date $X in of EBITDAX development part this drilled flow million, despite and we crude ability three generate year, low as prices thereby uplift our $XX adjusted of only online We production spent wells we've strong the CapEx continued than quarter, And about from even brought new performance brings XXXX-XXXX this In to to million expected better from realized thus campaign.

and term but of X-D In data term our locations of costs will we've that down drilling also and the G&A driving addition select operating capital will spending, to give We by our Liz that seismic announced we’re acquiring locations maximizes also add processing ability In our help oil us portfolio our believe and new more we cash entire managing to prospects. seismic the us to over generate to improve detail expenses. new free allow data will to it September, reduced identify to our proprietary capital flow. on allowing drilling maximize efficiency license. the recovery, this,

survey earlier subsurface which that the on highly acquisition we complete, we X-D success this ever process completed seismic of a are and drilling allow first term at than future for we a which will this drilling programs believe transformational next interpretation will in will to completed and plan be robust build by year will time of processing cover that seismic year, the license, as expect year. the When to fourth the We're time. acquisition a this the that seismic and this entire before. and more for proud survey quarter new X-D successful We continuous program complete

Levene like from only a Guinea. The in from I'd acquired additional additional XX% commercial you to for interest Block P will cover-off P. Atlas sharing Equatorial Now, thereby Guinea discussions ongoing those and we’re Ministry and acquiring to updated the Block or VAALCO future farm-out a working to the increasing as made, farm-out there's our excited of the costs Under on Hydrocarbons. the about activity working executed XXXX, Equatorial is of Petroleum, In working XX%. all by quarter drill our from million our quick HydroCarbon. the was give cost of about August, first P. exploratory payment interest production if that be $X.X participating production Levene We're naming us our to interest potentially In having Mines and well an contract Block reflecting with of amendment Block P interest operator will future substantially update and in terms,

stable optimistic next is campaign commence minimal VAALCO. we’re a the balance positive with debt exposure We’re at cash in with drilling strong of production a we that agreements well Levene the This prices. that believe a the flow couple for million free and prepare free with $XX energy base industry. to financial will years current sheet, and in that time will finalize in positioned challenging that we But is a cash

call turn we’ll flow growth. the long-term and maintain With focus cash to forward, I’ll profitable excellence our free both that, Going on Liz. over deliver operational and near term to

Liz Prochnow

diluted reported of or you, of XXXX, quarter lower in than the result lower the prices net In volumes from crude strong net of million production million year-over-year production Cary offset expense good temporarily we diluted prices higher maintenance third or income reported curtailment. oil three the share. the from crude program. low of per of everyone. because XXXX-XXXX XXXX, This impact this the $X.X additional of loss Thank drilling and quarter a of associated wells $X.X the year’s $X.XX more third In is realized sales share, quarter per the and shutdown OPEC+ with were we despite as morning successful a by $X.XX third

benefited same XXXX period year. net from additionally the and operating costs Third last compared expenses, lower with income quarter

quarter period quarter lower share, higher of second quarter Third benefit $X.X while same income as of the share a of the income of million, $X.XX XXXX from the volumes, $X.X $X.X were net expense. sales net of net tax which increased had year-ago benefit per significantly million tax by In third or tax partially $X.X G&A $X.X lot $X.XX included in a third loss a per of primarily in earnings a XXXX, of the million an in well million as per $X.X a million to XXXX result sound diluted impact adjusted $X.X that offset and share, million. diluted prices quarter the Adjusted million. $X.X $X.XX derivatives was income million or XXXX as of of expense or decrease reflected

which lower year third EBITDAX because due second the Adjusted the quarter adjusted program were EBITDAX quarter day operating of quarter the was having as and $X.X quarter full in wells lower in due lower than contracts. same earlier. barrels XX% from the in the Adjusted derivative as up quarter the of volumes gains because in to increased second third quarter million and XXXX. with primarily was net associated was same mentioned same shutdown the offset primarily and planned the wells in XXXX in the of combination three $X.X the the curtailment. per the Production wells in lower sales million XXXX, oil gain million realized year's XXXX down XX% which EBITDAX the costs was prices. million primarily totaled than that online, quarter due XXXX net as the in derivatives year. Sales third maintenance from last to $X.X quarter was for of completed year, for with from $X third X,XXX realized the this expenses, of quarter the from quarter XXXX in the the but well than of new XXXX four of second of XX% down $X.X increased quarter compared quarter second the the In this Third quarter XXXX $XX.X the on adjusted realized versus period our by new of million. of of higher for XX% XXXX production of to period were of quarter due lower same volumes field income period listings third came part to second OPEC+ this due the of Adjusted new primarily partially quarter XXXX of three third the third production drilling was of second million EBITDAX the in to

oil barrel in crude assess to this any continue versus per and we’ll of Our XXXX, flow XX% barrel XXXX per the same period the in of second per in But place. we in the cash price to price don't year’s needs time, $XX.XX quarter in future. protect realizations $XX.XX XX% mitigate barrel derivative to risk At have that in compared fell this third quarter. contracts the to our $XX.XX

on quarter was Turning as primarily as This in and period in or than response of was workovers third for guidance in costs in proactive $XX.XX expense oil, proactive less for excluding result same million $XX.X Production XXXX the employee at to $X.X production additional decreased was ranges. XXXX which barrel in significantly lower sales a reductions the Per million second was XXXX expense related quarter expense quarter the taken million XXXX pandemic. measures XXXX due sales the cost compared per unit result to million within expenses, this third higher to quarter to production net to lower was the $X.X than of of excluding quarter volumes. third the XXXX of the the as expense workovers related slide volumes. of third $X.X our of

in Well, $XX.XX. our or $XX for had and crude between impact XXXX, For previously oil top we’re range $XX oil be oil per interest of prices for $XX of reported by operational to we materially results. projected sales. $XX an barrel of to have million the our the the the the expense fourth workovers quarter to reduce to financial standpoint, tightening expense crude the barrel is million to million, From and $XX of a the excluding expense lot certainly crude production per versus million $XX.XX production full-year have looking guidance been sales XXXX Production and worldwide to not pandemic. on XXXX an impacted $X

impacts the per barrel barrel the which range. DD&A million barrel currently being per quarter guidance about experienced. of $XXX DD&A was future period was for not than quarter depreciable second from guidance being or same substantially higher Our rate XXXX in in range. $X.X sales, higher in XXXX third the resulted potential higher beating to per XXXX on to unchanged cost, excludes of unit any the the guidance due oil barrel per XXXX, attributable was DD&A was net in which quarter with above of the third the fields our rate volumes

lower non-cash fourth administrative expect General between expense expense the We for for in accounting of compensation per professional $X million. fees. was in XXXX quarter That quarter the and quarter XXXX this the $X million XXXX. $X.X similar and stock sales. the to result be audit our $X.X a and to net year second of legal as was was third of third excluding lower DD&A G&A G&A and expenses barrel quarter fees, than expenses, of the

of quarter costs included third our listing general The London XXXX Stock on Exchange. one-time associated the with G&A

a of forecasts million was compensation a based XX We’re fourth in implemented as of XXXX the tax in those in now to full-year ended allowances have this will as of are the during tax due of effective the million with reductions between we price periods. between a April XXXX, G&A occur for decrease and the reflecting quarter we of reduction stock quarters the to $XX liability challenging. increased, liability resulted result due the be rate, $X.X the XXXX in overall in lower our XXXX, year the during saw taxes, quarter, second company's third that run and XXXX, million. the price forecasting G&A negative in of quarter expense quarter an during combination our comparisons evaluation to lowered proactive And rates charges benefit months deferred assets SARs which to increase stock $XX three cash the September also on to Non-cash SARs stock cash recognized

$X.X benefit XXXX, current three company XX comprised months and the an For income million. September tax $X.X overall of million This expense $X.X was tax had of million. the ended deferred tax of benefits,

in-kind. Foreign income settled crude are are to taxes and the attributable their by oil Gabon government taking

approximately minimal the net adjusted had of In in on increases at At In mind our as prices. prices capital production to well efforts XX higher XX balance compared million, costs to of basis year clearly realized cash These Brent we each million. our are manage breakeven barrel website, cash had due as quarter June current XXXX, oil challenges September that deck $XX.X non-operating working shows with of free net estimate morning third prices, to advances. Slide $X an posted per joint million oil on environment. $XX.X essentially now approximately in As oil expenditures and the price in oil detailed in $XX our attributable is an down approximately prices included under $XX we have $X general, capital oil increased the XX is XXXX. accrual gone of XXXX sales. million low terms as annual This Keep unrestricted venture levels, in presentation higher barrel prices. in of the this well lower $XX that breakeven increase on adjusted September strong currently EBITDAX Despite realized XX costs. cash we general to crude as lower price million leverage estimate expenditures to benchmark low $X this sales per which the our we reflecting XXXX, of VAALCO’s of price operational oil net our flow XXXX by that to breakeven as

million processing to survey net XXXX, $X $X XXXX, the expect $XX As we balance quarter been since million the carrying be now the in call and to hand which $X million It to and to and cash to agreed of acquisition We million second the on has and X-D the Cary recently fourth VAALCO. XXXX VAALCO about million of all million debt. gross invest to net of and estimate acquire in $XX we’re cash from the no data seismic plan took quarter to between We to cost quarter case discussed, fourth have the or the operations. in XXXX. to I'll the With this we over of back turn $X.X seismic new Cary.

Cary Bounds

Thanks, Liz.

to pricing and continue environment we costs the improve drive volatile, margins. our current our While down react to decisively remains

as to portfolio. processing license, future acquisition to past debt field XXXX. base for allow will by all to We've positive VAALCO growing and a of the to operator the to strong prepare energy VAALCO very cash add seismic drilling locations, will our the quarter life better the approximately hand will to diligently provide as excited continues knowledge XXXX-XXXX navigate of growth operationally existing leave we several positioned analyze years, it continuing XX-plus free asset as to campaigns X-D future our for repeat strengthen and us cash drilling the and strong on With and years $XX in license at to remain only fourth actions free Gabon. to have a balance consider Etame Gabon Etame continue million full debt reserves of imaging This prospects VAALCO eliminating foundation hope generate in optimize term Over drilling to the placed new satellite future. uniquely campaign completed locations including flow, on infill to data We're September and worked our production field. a incorporate in conclude of a uncertainties. of solid then as We We in quarter upside. that fully identify generate taken cash and adding fourth significant financially the asset opportunities. sheet a we XXXX of with at acquire, success program producing recently production weather at focused of drilling the initiated We which survey better have XX near-term with build has additional cyclical our the term with X-D process and flow and well that markets base and us we to

evaluate continue to our well to positioned believe consistent we opportunities line strategy. deliver that strategic we with Additionally, growth growth that with ready our take questions. are we’re that in we’re operator, with long-term inorganic you. And And Thank objectives. to

Operator

We’ll Canaccord. Charlie [Operator ahead. Please begin of from session. question-and-answer The the question now Sharp first Instructions] comes today go

Charlie Sharp

accelerating current the the perhaps certain success the processing not could you little you program. number of fast the there thank XXXX-XXXX upon of a locations, other new specific prospectivity of just bit Liz well that I appreciated. much around interpretation perhaps of In process? a see update, looking dovetailing future about based details. that interpretation wait of comprehensive And question of If then the could and you well Cary see, areas highlighted with a also, for And you Thank seismic Thank you, of data. Seismic do of a very just you the explain and track and kind may drilling the seismic. of processed? of might have a ask is you much X-D that Or interpretation the is until for fully you. perhaps all paint you locations words, But picture to way I that

Cary Bounds

on Slide prospects. would good a you investor where share of question wells seismic Well, our and and see and you. areas focus would the happy call the satellite what it on of is to in and our list prospects you'll from what strategy to to I'm what we we where would XX, prospect our in I okay. we on accelerate answer a sorry your have list deck in processing, Right, Charlie, hear I’m And with be

imaging X-D, those where of identified And were is. X-D give the is prospects prospects what the so hybrid these will on are intention and existing our new us those that better

be And reserves idea more so the course, I'm prospects potential that's the I on think sorry, accelerate average barrels. where But be X processing have the range, we much to than or middle of would of of that these that. satellite million it where see resource could

Etame the one in locations, better say the processed the you of satellite our objectives. to mentioned, that's primary for like example. campaign infield then around And seismic processing of So objectives locations well prospects. start year. data end and South well so And our fully accelerate define And acquisition processing better to will prospects next we that's is But how our East also, our and towards of processing final immediately. or around the satellite define our

Charlie Sharp

Okay, thank you.

Operator

from Capital. comes question Tieton Dezellem ahead. next of go Bill Please Your

Bill Dezellem

you thinking thank you that survey, When I’ll really more oil going lot satellite Or you're question. follow-on what gut the are for are your out about is you. you're to lot determine? to thinking more began find to that more, the identify those going you of locations Great, wells? precise to ultimate feeling there What's last that you're speculating a survey, Are purpose? what you and a this prospects? doing infill in

Cary Bounds

and question. great to good from as well Bill you hi, hear and Right

prospect say And the oil confidence capital what is, so, spending have our and a with would the so drill better the would most most can the prioritize the I we oil. define to the understanding we and is understand in primary that the objective, so satellite potential of prospects future,

back what to I better so maybe XXXX, also, our primary in picked-up objective, But actually mention fields. in is the also would place And additional acreage. is, existing license defining the wells to government extension we when where that I that's granted think secondary

that that what that, in there's we haven't we is areas really And additional new find these find And studied so, we before. hoping areas I'm prospects.

are Bill. those objectives, so And the

Bill Dezellem

will the that satellite And relative your helpful. prospects, very That's or thinking issue is what confirm? you feeling, from to the gut hoping know what are you

Cary Bounds

probability we XX% can the that of we success are prospects the several XX%. is confirm probability success is greater, hoping have and or thinking that that to of I'm What

that maybe XX%. the don't most tell will second, I'd we have And are where potential so then us larger. resources. seismic like first to move the most hopeful prospects I like that where I'm of have mentioned And I that confidence to we all, said, and like I up the and the know

Bill Dezellem

appreciated. And used that’s I in Great, me would just my question. I my up back follow-up, or queue, go to shall continue? like And you

Cary Bounds

continue ahead Bill, Go and fine. that’s

Bill Dezellem

anytime doing, you're thank off referenced The that we as you. things me long Great, And part press that a away G&A, or that that as you is the higher going been expense release as anytime. proactive is should in result issue? cut go and $XXX,XXX or the structure an $XXX,XXX probably count COVID to COVID soon as your basically, of an ongoing of

Cary Bounds

our part would devastating. cost facilities an of COVID doing is is which long outbreak our issue any it we're our count would as what as on ongoing be an because of the structure we're impact You as mitigating of

continue cost enabled at as because to So on running. is producing But I epidemic us, see operations. you real still with it has impact that we’ll minimal would, continue kept that us as it cost look is long to has the yes, no

Liz Prochnow

just expense G&A. this And rather also production these clarify, want Liz, I'd is primarily in are like costs I to, our to than

Bill Dezellem

thank Yes, you.

one. it question, my As I asking next confused the I with was

how but a that's did Liz happen? did allowed you sequentially. clarification, G&A So the do decline that? I What great is $XXX,XXX job, that which great mean, to

Liz Prochnow

and you're G&A, overall talking so Okay, about right?

Bill Dezellem

in down QX. G&A overall versus QX right, That's

Liz Prochnow

to with there the of SARs liability. Yes, has do on going what's most

at So of period. to the we that have mark the market to end

quarter, liability. price So to the on that's the is the whatever last day going for of drive stock that the valuation

expense. with we when in up that you it's a say expense. between an of end record going price, I degree, when reversal to a then have quarters. large would decrease, record stock stable additional to the have pretty And increase the beyond what's that that's on? you a so you And But

Bill Dezellem

one The price? only a think could lower benefit stock of

Liz Prochnow

Yes, for say, like I I with charging that. agree I have don't client you. to

Bill Dezellem

gave the confidence your with the allowance? if that causing, reduction in reduce question, of that pandemic other to uncertainty I tax may, accounting the allowance understand valuation what one the valuation I is all you

Liz Prochnow

just U.S. say, it's of interim allocation. GAAP the rules to confusing, this part have I on mechanics but and of is period the tax

I think be almost of me, But really it's a rules have tax rate, change because some there's think don't overall versus we've you not, understand. we're up and to to quarterly probably because the would have we've stuck not give got the for end-up for the rules you were income difficult it's end our to in year, tax allocations odd most sense. an I expect. make some and you the apply, best in the got you on to answer. overall, other candidly, I end-up what know, you if basis, would of I the we effective really that just see that's losses expert which I allocating it make can ended sense oddly it'll So with in with. it what and quarters, where they the is situation, it's with taxes the the negative helpful that were By and are, helpful as way but a to something investors that's But quarters

Bill Dezellem

I'm so it, this to And take offline, more going maybe on. I and stab should take one at then move but I'll

Liz Prochnow

Yes.

Bill Dezellem

is So entirely done. why quarter? a something logical? mechanically what profitability that'll as that Or would to needs result, the is in more expect expecting? that's it this were previously this than greater you again, less indication And fourth be an obvious And you be

Liz Prochnow

quarter, of terms look basically a take of kind income. be to, this we logical portion to so less on to we whole going the to what in than taxable how negative And that of year. forecasted rate for first entirely and allowance valuation and valuation ended allocate losses something putting then is at were had we in it projecting bigger what a thought we it, a and It’s up the first in quarter was we using had then the full-year so allowance the

the that make That you're out But your a deferred a odd the a due quarter, first that very but year. of end so is. doesn't kind of it had sense, deferred if by got down of could It’s in tax you writing lot a over the hint liability which amortizes assets, tax liability, tax subsequent often And the large result. very possibly or explanation (inaudible) we quarters. but reverses when that of deferred be

Bill Dezellem

production how to Great. you. was then And No, me. second the did? the what the it, FPSO for themselves produce maintenance recognize last Thank than much quarter are better versus the producing, wells quarter? of How in versus you one I could was much appreciate to Liz. the that component due OPEC third Is the decline

Cary Bounds

the way Right, the was is in turnaround. and on a five-day think platforms the FPSO maintenance about the turnaround for that to Bill

average multiply so And five turnaround. the you and the production take and that can of the was by impact quarter the for

rest Gabon so that was reduction And of meet the OPEC related curtailment, the could to their the so quarters.

Bill Dezellem

Great, both. thank you

Cary Bounds

you. thank Okay,

Operator

comes Jamie ahead. Wilen Next Please go of Wilen Management. from question

Jamie Wilen

we Good morning. others. of circling looking your maybe Karyia partner end? Do And and their When And you And Do around this to part is their in wait buyers of be that? (inaudible) lots have first of the worth? think we status say what the right till does to is could Energy in sell Etame that reading Energy, bidding? tell about, about we what interest. of partnership minority used we refusal? there a me Are

Cary Bounds

because to VAALCO operating opportunity Etame, Sasol, to the on only not other said very cannot partners for be joint what there that for I can right Right, though whether process partners, would on. there Sasol comment notify I Jamie, the we're the opportunity repeatedly, we've the than an process with is, it's preempt. under our comment that. is so is the who's and than on can venture comment process yes, an and or we that, and price, what for other VAALCO but the at status there I Sasol’s for sales Etame happy Addax is the divestiture the on asset but really our venture and I in would agreement I PetroEnergy, that, to Again, And partners other participating stake, And say can't that can't is process. other is is details, those to Sasol’s comment preempt our joint increase say all

Jamie Wilen

be or dates Did Sasol deadline invited? any put wanted when they out to

Cary Bounds

Jamie on process. again, can't I their comment

Jamie Wilen

with recall the they give from with they that seismic What I new extension that. gave reading talking XXXX about Okay, when about mentioned you? areas. that you you Gabon didn't were did the you

Cary Bounds

areas Okay, Slide time, yes, extension, if XX, if I at you the today. I'm But one back production have you the that not we outline go And continuous. to was again, that deck. the refer there's were you they the Etame one were call on and AEEs to then South had XX. towards Slide to further but Avouma, there north, access and one to don't Ebouri. the Southeast middle they basically, Etame there that there separate was investor three in prior was was in East license they and And our of was was if know what to an

and between then And Ebouri picked say acreage the makes if up and we the Etame Etame sense. Avouma, center and of so field in that between the the is in in acreage

Jamie Wilen

Excellent, cut what forecast good. for could a percentage cut restrictions? you do have requirements you force and out you for they put to for compliance OPEC? forward, to factor of you what When did back in you you how because the And fourth do back, also, your do to may OPEC looking meet quarter

Cary Bounds

an question, VAALCO VAALCO with than other I was VAALCO’s commitment give details that in back take you Right, commitment, first. the right. the cut the and between Well, percentage your second rate long target The negotiation I'm on a reason, based cannot we we to comment any for than worked to have can't it long-term for we we negotiated on And, let that not really make government. did government me production of wells independently other really invested need us allow that, Gabon, we Gabon but operator and to drilled long-term allocation heavily we I so and the commitment and in clear our that a so and recently recently rates government the investments. each Gabonese recover we've

on quarter, question see has requirements into what you'll first production OPEC your the but built the ranges in guidance fourth So it. our curtailment

that end the that of to forecast. ranges quarter we and the up again that, is ranges, the prior out so that And put fourth compared low range

already in. already OPEC there the built is is one So is if curtailment

Jamie Wilen

look where XXXX if next a to wait prices And lastly, is item complete. X-D till is you're that? going a This at you program, the do function or drilling the with seismic or of oil

Cary Bounds

most Well, acquisition see of accelerate the we will course, today to of in don't there's seismic as Sharp, let we areas make here. me wait a certain see really, a couple processing have we where And the Charlie with then, points couple, till We we prospectivity. is complete. about we talked earlier,

wait necessarily processing don't we of have all locations. to well is identifying till the complete So, to

program. again, processing survey in early next drilling throughout have So the all of we'll interpreted And terms next next have year. data, start year, the

So to in drilling let programs. months survey talked of the me down slow about drilling say not program. the always XX XX the between next We've seismic will timing

So our and still ambition our schedule. that's

you up when we when XX again. April, think target to about last of So we program months XX from the drilling kind would picking concluded that's

be So next XXXX, early something late that into year like would that.

Jamie Wilen

your Appreciate Great, thanks, time. Cary.

Cary Bounds

good Okay, hear from to thank Jamie, you, you.

Operator

questions. like conference [Operator would Cary closing session. the any to concludes question-and-answer Instructions] our turn remarks. Showing back for over no further This Bounds I to

Cary Bounds

Yes, I forward with you to next we for to everybody participating look and quarter. thank speaking wanted again

Operator

The for presentation. today’s attending now Thank concluded. conference you is

now You may disconnect.

VAALCO Energy (EGY) 6 Nov 202020 Q3 Earnings call transcript