to welcome and you, end conference fourth And quarter Good everyone. morning, year XXXX Thank earnings our call. Al.
we Stock runway extension towards like all I XXXX, long-term value a to diversify our Exchange which our in our are growing to discuss reflect base, have a our rebuild the blocks and achieved number by to additional building access the to provide I York reserves and to XXXX, with New maximize XX initiated we of XXXX, objectives. of our in accomplishments fund and to provided sources on negotiated VAALCO assets. from paid license significant years providing position. opportunity by the would Stock we Also complements our outstanding on production on growth. results, up of world-class research debt additional the In attract VAALCO off all Before shareholder Etame help Gabon that began of our we capital us cash London Exchange, which trading listing In coverage to growth increasing
adversely net year-over-year average had and campaign. of impacted production we XXXX production X,XXX saw well campaign Just as by day day, as per critical, demand result supply barrels of in cash of Sasol’s opportunity three success. in increase XXXX acquisition us a February through very Etame the to arose production free of and kicked our place XXXX-XXXX two our sheet balance oil Maintaining XXXX, our prices We off our wellbores. in we In to with of appraisal per the global able in X,XXX our challenges net with hedges oil had successful Comparing That as able development we successful wells to in of higher as XX% good and fell our continue We that drilling from to oil we XXXX. September oil full flexibility XXXX were pandemic, the volumes gave were year close cash barrels that the imbalances. and COVID-XX XXXX. flow value drilling in us protection hand. XXXX, and meaningful when of provided prices ability overcome accretive XXXX capture financial generate on interest strong a acquisition
production flow provided to generation with along continued in drilling forward. expected strong us late projecting additional announce going This transaction pricing, cash With confidence the us with to that brings our the which start XXXX. the recovery has free oil next campaign, meaningful is in we’re
could very that to additional to four barrels drilling our We all gross to we drill oil program achieving is per our are as future This XXXX. X,XXX X,XXX net time With long-term planning completed well our Etame, an and wells of up when have to are higher are ahead add goals. interest that truly could in X,XXX a bright is of the oil barrels in of day us X,XXX be as to this on exciting an additional working way we believe VAALCO. per we VAALCO we to an for -- day
purchase for flows results, the effective Before be of highlights date. acquisition. we date to the some cash closing I our get would through cash amount from of key into net Sasol’s In settlement interest Etame working operational XXXX, the with the $XX XX.X% to the by to generated final review in agreed I like of X November of reduced million, Sasol July
the Since to is increasing We price we improving and our we operate $X.XX benefit the in at oil is believe from margins, we already million the increase and the million CPR will averaged XX deal $XX and very deposit cash per we barrel paid asset, than year, XXth paid part days. We and is of the on of in closed a expense, about this needed acquisition. closing, between deposit we flow agreement, Brent reserves. for for XXXX generated barrel we net minimal integration $X.X of was on $XX.X no production closing of X, As November consecutive XP all $X.X million it hand. taking expect accretive agreed the the VAALCO the there cash G&A prices if to immediately cash as contingent account for $X date was a and made of with into payment July February acquisition the greater million oil that
to was XX% which from quarter Turning the an oil X,XXX we by barrels produced the driven the of fourth quarter campaign. fourth net of of strong drilling recent results results, per of our an well increase operational day, in XXXX, of XXXX, average over
For oil increase barrels per X,XXX day, the net full production XX% of an year year-over-year. of averaged
ahead Sasol Looking like the to a of few minutes XXXX, I would which XXXX details outlook, result as to the a additional discussing production volumes spend of our acquisition. includes
fourth Sasol day. Sasol barrels first acquisition. second first The that remainder between February of with month quarter is volumes average first XXXX, XXXX our guidance the will midpoint In guidance of to quarter a expected of puts months any volumes transaction and the X,XXX for net the between quarter includes This combined, of production one which and our of per increase X,XXX XXXX production closing XX% X,XXX not oil VAALCO means to quarter XXth. guidance two X,XXX Our of XXXX first per prior over date production. day. the production production include average of of includes is volumes oil VAALCO Sasol the barrels and Production quarter production net impact full and quarter
natural delay in That consideration, range position XXXX XXXX. be XX% barrels full of per this rising X,XXX increase on net the from late X,XXX is XXXX oil adversely VAALCO a the pricing reported campaign as XXXX, coupled are in our significant production, with the not the to early cash of into half we and of adjusted cash from account enable half decline year-over-year fourth expect of barrels fund second the net hand. our results annual expect of average uplift help environment of any well, EBITDAX Taking Taking solid and for turnaround into the production oil midpoint the million. to material should by we the upcoming forecasting quarter The planning Unfortunately, and per oil upcoming we seven-day drilling in sales its we of all from impacted of day grow January. were increase day. into production second generate our In at between campaign. X,XXX December are drilling to $X.X we fourth net quarter, to X,XXX During guidance. a XXXX of year and EBITDAX
volumes were was sales than were quarter Brent which higher a adjusted January As January pricing result, priced but and at EBITDAX our earnings December. fourth to deferred lower,
For generated the in adjusted year $XX.X we million XXXX, full EBITDAX.
I our a entire XXXX, In and Now acquisition to scheduled would for plans seismic block. seismic Etame like over XD year. of to the progress next survey the of our the the campaign late acquisition new XD this drilling discuss we start completed
drilling at our future Etame. vision locations. over a XXXX, will the drilling reduce seismic the the continue repeat solid campaign quarterly our allowing adding data success XXXX legacy XD expect is programs enhance for us continuous first drilling several our over similar The with foundation improved campaigns newly that next In production Etame. the acquired optimize prior by XD built merging our years data risk I and entire future block. and help We imaging imaging calls, the for subsurface of seismic seismic to seismic The and has reserves to have said at drilling
and Sasol the pricing, the seismic With campaign. block next our we improved XD time right new believe closed, acquisition over is drilling oil start acquisition the to Etame of complete a
up We of in finishing in are quarter wells to drill XXXX and to the fourth four starting planning XXXX.
drilling are opportunities development two access and re-entries for expecting low costs reserves production. wells. We will wells are sidetrack and appraisal to that drill reduce currently two There risk and
in We the to not XXXX. report. be day data the VAALCO. to X,XXX million barrels well in per X,XXX believe of $XXX low net field determined oil in to If estimated flow The also or that completed seismic we upside combined offer barrels are our have processing between structure. four conjunction increase generate locations million prevailing day per our VAALCO that oil of meaningful of our production million $XXX XD campaign currently successful, the new the in drilling cost cash and is The free potential the appraisal or with $XX X,XXX is with the campaign final current prices operating net when $XX well to reflected is estimated is acquired. upcoming gross significant we million can reserve will oil cost locations The to has programs X,XXX the program is gross to drilling when of
transformative organic to in the growth additional Our strategy opportunities to is flow cash future. free the in fund utilize
more and details provide will seismic later finalize we process locations. as our We well the
on cash basis net $XX.X on $XX expenditures in capital were Our basis. a million an XXXX million accrual and
primarily at were program expenditures to capital drilling XXXX the Our XXXX-XXXX related Etame.
year XXXX For potential FPSO $X million. the excluding The estimates related life $X million campaign replacement. the seismic drilling any to expenditure to estimates VAALCO XXXX, full costs and expenditures, its FPSO extension net also full capital capital to year total exclude or
the of life be costs FPSO, we will upfront costs. to Nautipa long-term replacing either there or the lower with able While be we associated believe extending will
Next, reserves. I minutes to spend year end our would like few a talking about
value XX% at PV-XX these as Our were value revisions XXXX million per end by pricing. reserves to The X.X The Etame down barrels million the of December SEC positive the were at and proved million from year XX, $XX.XX XP million XXXX adding SEC year decreased revisions significantly. in end and by at SEC SEC XXXX. significantly which PV-XX X.X pricing was a were performance pricing of barrel, XX, drove result proved XXXX revision discovery $XX.X were Despite pricing downward X.X barrels. VAALCO December down reserves the The at proved reserves impacted $XX.XX year-over-year. production of South reserves XXXX East driven SEC barrels down million $XX.X net. slightly barrels downward million from of of X.X
Brent plus end XX.X year proven of million was $XX.X to XXXX XP year estimate reserves PV-XX year VAALCO’s XXXX XP at probable virtually Our million, year-over-year XXXX of reserves end escalated at remained VAALCO’s working assuming unchanged interest. barrels CPR The end CPR pricing.
reserves end very VAALCO’s assets reserve over years. Netherland, VAALCO’s fully & for and independent independent of end Associates. third-party were by year with Sewell Our familiar are have They engineered XXXX annual XX reserves their estimates year consultant, provided
of and barrels Sasol’s using SEC X.X Etame, for proved reserves the we of million estimate production. X.X CPR assumptions were barrels adjusted XP Regarding net acquisition net approximately XXXX interest of that million reserves year-end at acquired
operator first through the for give VAALCO a our XX% interest I continues you The a the Given to quick to that quarter Sasol In $X.X Atlas in only made, interest on us P sharing updated additional all acquisition, about Equatorial that we Mines cost working P. update Block of On Hydrocarbons. the as Petroleum, that increasing activity and like thereby future from can and the to there’s Guinea. Block by our increase participating acquired we working increase see XXXX, significant the a substantially in Memorandum August, has only well. to In cover-off production reserves pricing was believe as of of working amendment to interest well Ministry now acquiring of will pricing to and or due Block drill P from contract not Guinea Equatorial our but our is it commercial recent Levene an additional exploratory XX%. production if be million from with Brent Understanding would The reflecting those executed and Non-Binding payment expired. to assuming material costs in XXXX, interest naming
to gross resources to drill XXX barrels the our West of prospect. funding South We’re exploratory million alternatives cost at evaluating over an targeting well Grande
the resources our over scenarios gross committed excellence excited to EG enhanced to about profitably successful and operational discovery months, XX to a drilling VAALCO strong potential. drilling generating later campaign XD and Venus barrels In we remain seismic for contingent at while accretive new at another exploit resource We value We we campaign over P. with results. of financial evaluating remain summary, XX have past also and are materially We planning are the working million year. Block this acquisition, on highly develop
sheet and like continue turn We price growth production With our to with flow -- our to the significant This will base as over profitably strong meet to should future increased goals. would call we in balance flexibility rising with provide a share the have generate results. financial XXXX. look in environment, a for and Liz our I cash we long-term that, to our to grow increased
