EGY - Earnings call transcript Q1 2024

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Operator

Good day, and welcome to the VAALCO Energy First Quarter 2024 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded.I would now like to turn the conference over to Al Petrie, Investor Relations Coordinator. Please go ahead.

Al Petrie

Thank you, operator. Welcome to VAALCO Energy's first quarter 2024 conference call. forward-looking of Maxwell, the the review CEO, cover highlights key first I statements, our George will After quarter. Ron provide Bain, a then more in-depth our financial review. CFO, will your closing George to you questions a before will for and your question-and-answer some one then we we return limit take follow-up. questions.During to ask our session, comments

guidance out our always a and supplemental posted reenter additional should website You analysis, we has that queue can financial questions. I'd that, proceed deck on helpful.With that with the like that additional statement to let point our with be investor comments. comparisons me forward-looking

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

George Maxwell

operational EBITDAX results, strong Thank first with call. to began quarter financial our you, XXXX including and positive conference Good adjusted We generation. welcome and Al. earnings XXXX earnings everyone, morning, and

rest announced assets we're acquisition. to expectations. XXXX and XX, at the This efficiently that Svenska acquisition the numbers We Svenska million schedule, XXXX. of ahead of for the for in buyback.Let's of into our those was financial we shareholders operational dividends deal XXXX quickly In beginning the in with QX. internal incorporating $XX an returned April of overview We about the very in end and addition, begin over on our our all-cash we and new excited April, of results acquisition done closed and VAALCO's through QX closed million ahead and $XX.X

Our to team traveled to officially directly Cote on to CI-XX. a the of VAALCO Hydrocarbons new meet with as d'Ivoire Block Ministry introduce partner

accretive another additional Block CI-XX growth.It and adding asset metrics an We strong West price. diversification reserves Baobab production with attractive production and very area. to are highly at strategically provides current Cote strong us on and focus expands future field our shareholder and provides with This strong acquisition support d'Ivoire our in a asset key is The reserves. has African

to to next drilling be the the reflects guidance. Kossipo to time with lead detailed which and outstanding Baobab future International quarter yet International XXXX greater positive Later and of second plans we adjusted full information Egypt. to significant asset upside partnering and relationship development undeveloped the in field Petroci and discovered with field, phase excited yesterday's year, this are get the should Both believe we and we updated XXXX to provide drilling improved We of the which barrel, year operators' earnings d'Ivoire margins more release, of Baobab after in our and expect CNR further CNR Cote impact and Baobab you an production potential.In is per the expense production have plans.Turning planned project on had with understanding our and FPSO additional EBITDAX. to a

per added of In we and about X to workovers, capital This quarter, oil return on help to fracs. including day, XXXX last offset the recompletions focused As decline. projects of mitigate natural of decline. X we helping disclosed quarter, is first first work rate the half had XXX workover barrels high

In quarter major addition Egypt. the XXXX milestone a we that am in proud accomplished first the in successful to of workovers, very of I

have have drilling program to on this testament dedication over a I evaluating all in evaluation We million drilling remains our gone time well safety, of second confirmation This on XX and lost program a to for we year. mentioned of is X half people and rig of are last training to of the commitment our we program for a the man the XX a the call, incident. This hours field.As our period. that contingent currently of without completion

add We have won't not included until CapEx confirmed. and guidance it program this XXXX in our

we additional production. program, the approximately will with of $XX CapEx proceed million, we which if anticipate additional XXXX generate However, also

wells. We which released is some wells. payment of first receivables, wells successfully from we announcements aged all the in positive have in very particular, we a X.XX government the of quarter lateral all X in March, completing X seen In Canada, we XXXX, rig, drilled began mile late and encouraging.In XXXX, drilling

wells successfully wells been unloading and the X production X and on results. have coming encouraging now completed have with all of We are fluid

and of XX wells contribute other are the all the online be placed month. X The in by expected production wells days X within to next the end

in the in guidance information we In are production could the an to in press more targeting acreage. detail potential exploration in acreage, the our see in and our undeveloped impact have in future with well that release and Ron sales yesterday this that our additional out will also later.In and locations. lateral we if up southern third can we You prove put minimal subsurface wells add proved quarter well, appraisal review the our of exploration long XXXX addition, successful, southern

has an liquids, existing to production our profitability.Turning of dollars to related fourth Gabon. contributes portfolio performance and to lead will favor We Our previous overall Gabon and which completed in wells more the increasing our maintenance and CapEx in rebalance in XXXX, invested long drilling new XXXX primarily equipment. the in campaign drilling CapEx quarter us to only strong minimal of the and gas/oil ratio well

decline technical we The FSO our projects next actively Southeast and on to fields. working and us at wells. efficiency capture XXXX, the Activities North the of allowed reconfiguration curves final field are XXXX reduce overall with Etame. since are have and have seen results then We positive Etame in overall and production downtime, on production strong Ebouri, minimize uptime Etame, aspects ahead and OpEx.Looking the drilling campaign Tchibala commercial at planned to improved

that a mix have oil we between at HXS in Ebouri drilling production a power that they that forward.As tested. and substantially keep the high a X We trending the were chemical planned campaign levels encountered well were to or of infield solution, a after exploration production HXS includes but fuel Ebouri of levels been wells going and chemical development be of for costs X XH too the well able the for along gas using lowest in X in low requirements and reduce XXXX with high wells had XH on field, field will the of previously, discussed with wells effective. treatment XH the to due to We the on the treatment wells levels well would to HXS, shorten be increasing

the the being due of to barrels we currently to levels the oil are were XX left current field's million of a As HXS and HXS the efforts wells support between and concentrations X forecast to testing validate expect HXS wells. complete remeasuring done XH in second our proposed to also to contamination.We in resource to HXS XH with levels assess quarter our contingent million in of XH future and result, potential the other and testing modeling is well XXXX. The

Ebouri. the We to path at increase forward production for continue cost-effective to most look

Once methodologies we the also well. with result the address X only well, fault replace test but currently of the Ebouri, reviewing undrilled addition, XH an going solution oil well.Coupled to resources stranded well opportunity forward. oil commercialize crude a will are exploration We optimally going not process new and to mechanical sweeten optimal potentially to wells and a a with at add determine XH more XH plan forward, conduct block with our we we in HXS with Ebouri, the chemical will sweetening and an derisk to to the located in treatment the at plans and workovers an field in

Our extending evaluation been access new oil ability Etame results completed number to Etame of field. just In and to identified drive more use on lower potential. field's this to of have evaluation, of technologies has the a revised a engineering life knowledge we new our the the paramount field, we cost opportunities. and Based of

Etame production will online platform, well at We therefore, platform X prospect the well. immediately well Etame are within and wells will be exploration exploration prospect.The and the sits nearby the from planning as successful, of if production reach is it brought the a a drilled be additional test to

wells pilot resulting is a third drill platform, Etame production the the platform. option, slots exploration the We well the so are the early main of second in we have the for successful if have attractive block, fault Etame well X both Etame well open a to from potential and at

Venus Design commercial included total finalization our lead continue enable make Equatorial lot and time with spend and and this to the this illustration a spend included between FID, $XX XXXX, The is between completion which development on March have study investment We million Venus. expecting on an we negotiations of those some in now for plan in XXXX, will accompanying finalization GEPetrol. have and Block our are study. we the announced a previously in plus carry our announced and campaign. economics made PSC decision, items more partners, examining XX, drilling the to we or slide terms long on H documents and Front-End the or This continuing currently lead the progress ongoing. of XX.X%. will G these the FEED of FEED and assets, Gabonese an will our $XX On to agreements is deck.We at Progress to SOFR P This to government, Engineering of and related Blocks arrangement the economic how development. them We of improves Atlas a X%, of profitable.We anticipate preparing are in efficient quarter. proceed XP encouraging of final of million partnership anticipation the of the of Guinea in arrangement

we new more the We Block offshore expectations. execute or operate begin guidance producing our have that with who Equatorial and hard our plans. are to XXXX continue analyst this shareholders. operationally would in operate to next and on FEED And year have outpaced results for study forward in of plans very I the few solid growing years. like to excited by team to started financial on proceed working and P discussing our detail delivering complete.We value discovery to our with is operations We reserves from in once develop, the remain focused look exceeding thank our Guinea and production,

portfolio, our growing remaining diversified has greatly have expanded our we position ability years, cash which X past cash operational generate free. debt while our flow the Over to and bank

track portfolio share well our to We I'd within over the proven in our to few the to are past the execute results. and enhanced record that, years should these turn success Ron instill of confidence positioned future.With to projects financial call like for our

Ronald Bain

I turn acquisition were begin oil by about revenue. echoing the per were our changes at XX,XXX Thank ahead million each and results. reiterate and also the our areas. good the in see and remains if the solid, from insight impacts focus be higher diversified generated and have with you a and bigger in our to performance, guidance, mix in the along you, will with both on of quarter-to-quarter March, ultimately, Production portfolio production impressive across a financial Svenska by financial We strong and into sales our and XX, producing picture high our for equivalent results see year, sales EBITDAX, our into quarter financial the success or key and I'd closing In change end at that growth George, that will by results. highly for expanding a quarter day everyone. the pricing acquisition of to will income you of all over assets, of George's lifting will strong of first quickly assets.We and comments results earnings. for we with sales, drives accretive realized almost barrels this But sales the $X.XX sales net drivers for into of estimates.Let's closed continued the Gabon our provide XX.X our me guidance. $X.X we a share May as of on which mix pricing in the end completed first our from per quarter, sales our consensus of means April million like XXXX, forward. with some This from solid realized driven and adjusted can operational morning, the the at the in portfolio look our X in incorporated on results you full production, producing revenue assets points.Let

So numbers, X Svenska to have of X hedging and and strong our months Pricing protect remains mitigate of always full commitment impact and risk impact. looked the months will second quarter return. year has the to program our shareholder help

costless have quarter XXXX, We current Realized were were costs. in disclosed the positions colors the earnings to hedge and hedge $XX,XXX.Turning place in for our costs release. in

end bottom on absolute production the costs end below Our first and per basis. guidance quarter a the of guidance low of on of for XXXX the at were an basis barrel

the us combined reserve. compared maximize us and well on both DD&A fourth the costs seen of a and completed timing lower in a the quarter-over-quarter, the Egypt in XXXX, of the single per DD&A primarily our synergies. whole and keeping ERP in behind have adjustments in capturing reserves assets. we a costs with margins additional year, low XXXX reorganization our G&A and we state the barrel were outstanding ahead together basis investment costs debt were refinery. commenced the to on because absolute is are for government-owned we with credit VAALCO of TVA profit agreement some in depletion enable lifting deal This November mostly seen for long-standing to the Compared projects protocol tax a our online guidance. rate flow, Gabonese to with to were in line cash and by XXX,XXX and oil This protocol agreed quarter. our When to target differences across well prior year-end focused process XXXX. brought XXXX, was holding increase in will company.Non-cash driven Canada higher way with that XX%.In ] costs of improvement lifting also an by a down a in prior of of to as state discrete XXXX than reduced about both in resulted in barrels barrels lifting held had permanent that We we had state settlement XXXX, loss of May taxes foreign for no XX% costs in in quarters was of due debt Sogara corporate revaluation overall ] quantity an its remaining in effective some of barrels Gabon state of Svenska settled once new to we've costs CPR. implementation Year-on-year due remain driven G&A in of the XXXX back-office Etame first wells TransGlobe, in costs oil While This of increase we costs and Egypt and across the of by be and an as final barrels as [ our million the in for Gabonese reductions integration our the costs quarter seen debt. project made [ are state quarter $XX.X evaluation DD&A both in by from increased a the an the increase tax the costs meaningful on The business we've transfer payable, on the for and XXXX. contractors primarily approximately synergies but in cloud-based of this barrels.Tax with of about

we mark government taxes the Gabon, are our stated foreign have by oil the to As At each the market through to end in-kind in-kind before, quarter, settled payments. in oil. income of I

a price taxes. we if it the to control tax marked We has to. And rise, commodity thus negative fall, in-kind is which a accrued prices impact prices this movement the our of when general, see reducing in our benefit, So liability. to oil cannot underlying

quarter, long rate this $XX term, million call, cash million We sheet movements, used continue Svenska working capital in the to receivable. million of fourth reduction to but now XX% in slightly also tax capital payment Egyptian We offsets, EGPC was statement. over some sales the payable and receivable. offset associated was against balance occurred likely of effective items.Turning The we XXXX sold to which decrease that XXXX. in in quarter the acquisition. cash the had In we small flow fund we the guide payment. first April, accounts negotiated of multiple Also, effective is in domestic as related a to first the tax quarter including all modernization about discussed accounts with XXXX accounts cash the correct the $XXX $XX of XX% last In annual the XX, March as as down to excluding to Unrestricted of the our annual we XXXX, modernization program. an discrete production rate experienced

more other we early cash and that costs. market had including cash paid EGPC payments domestic also Gabon domestic QX, tend collections insurance obligation had in annual in in company and We to sister than and year, certain a full of available annual sales.Additionally, annual renewal quarter our new recovering offsets staff our package energy the be

its XX% receivables payables. concerted In agreed XXst that the the billed the billed of reduce [indiscernible] VAALCO its has reduced reduced quarter, with a December, first community outstanding engagement accrued. made by a partner projects part that the are as were first said, and PSC quarter on we're of pleased of community sanctioned that being in Gabon, cash operator Finally, backdated payables responsible XXXX. of about XXXX.With executing in These it effort of a we items as the to Egyptian government its backdated also previously by

paid additional VAALCO since $X.XXXX build value.In XXXX, the XXXX, and credit our to debt acquisition our are opportunities been dividend available common quarterly continue bank million, for a quarter. or we $XX third $X.X carrying the of in the quarter to $X.X utilize facilities no accretive has returns million case shareholder share million, was buyback and QX about in of per share cash over As

of We which to now turn of updates. you highlights and I working that give of to the breakout paid XXXX remind revenue production slide will website forecasting want guidance, to both recently working key acquisition, is and now second and XXXX. we some interest also full breakout me of guidance production interest.For deck with year, and equivalent barrels company, the wells first closed expected between and the decline. dividend I the second earnings for be includes payment June.Let Svenska barrels are Canada up due offset on supplemental net between for oil in XX,XXX XX,XXX in announced in quarter interest by our will where slightly day. a and year total XX,XXX guidance the QX acquisition natural This Also, is to per revenue full XX,XXX day interest and our from our release the the per the equivalent net and in significantly oil you quarter new Svenska be

campaign we're them in less we a help and Canada, second and we our offset VAALCO in neutral is full XXXX, oil expect government our lifting XX,XXX XX,XXX sales and are in on XX,XXX mitigate the to we our decline cash production that per year In should XX,XXX net program the will tax through the flows The working by Gabon, and barrels one production assuming natural I of company our holding a day.Looking Cote quarter, d'Ivoire, we're interest liftings line settling per in quarter equivalent be more to full and year-over-year Egypt, full have December sheet. between expecting be the in in from as with or balance Egypt we're day of our government for For decline. now total reflecting in In equivalent accrued of are that with the expecting being at of between growth forecasting quarter. drilling our do XXXX, workover asset, It's we're from mentioned, year XXXX, through lifting. interest the May half first the Gabon production. capital although by net for X numbers.For and we oil and year revenue sales operations barrels liability

barrel as FPSO costs at our Svenska volume. G&A the operating decrease Ivory in expected we up absolute our are expecting Svenska per XXXX both as has capital also We're our go absolute million to Our CapEx, Coast drilling to for Gabon, next and addition, in due are drilling but previously.Finally, of looking increases Canadian the increased be between oil to projecting Svenska $XXX range we small we the the to program. equivalent XXXX with million noted spend anticipated prepare change-out, $XXX campaigns and XXXX the

CapEx.In we're despite believe of and for $XX debt quarter, having at of the continue and we For recent EBITDAX low we yield a price trade performance, despite strong being $XX second expecting between that closing, bank a stock to free. range a our million our million multiple dividend

acquisition, generate forecasting meaningful increase the cash XXXX. Svenska to flow should a we are sales, which ability in and operational increase production EBITDAX With our in adjusted also and

well are multiple program turn the I and execute the fund across assets back CapEx very positioned several years.With over producing George. call now over our will to next We that, to

George Maxwell

Ron. Thanks,

efficiently, asset accretive opportunities. base strategy, maximizing continue on prudently looking will focused our our We for execute and investing operating and to

have strong and you both in off heard this start As a very morning, XXXX, operationally we to financially. are

and of a see EBITDAX. the flow closing at we the April, operational of Svenska positive per the adjusted end sales, to impact cash With BOE, acquisition will OpEx production,

Canadian we quarter. in Additionally, have the the coming online wells development second

results. in are X at FEED we exciting to drilling we projects believe will our have and credibility past our delivered workovers the growth market We optimizing having we with are executing is while few I next commitments the the have to organization of over entire Guinea deliver planning actively the on to slate to over we production and continue study campaign and and Equatorial deliver the years, gained shareholders, years. strong working in progressing Egypt.Our a sustainable Etame, and

and returned portfolio enviable position QX debt with to our assets returning shareholders. addition even potential our to dividends and we to $XX future value million on we stronger funding capital financial producing XXXX, no with an of We remained bank shareholders upside.In our through program, have an buybacks. focused in are In

on are yield XXXX, current share we annual deliver share paid XXXX, pace in matching has dividend about price $X.XX per We dividend X.X%. of what a our to for out another which

As and the can improving Ron to open and corporate and the to to sustainability closing I the a be up our our ESG and we call guidance I environmental now effort I as XXXX. seen will in and discussed, which would to X of that awareness out addressing only only Svenska concerted X questions, have full want a made our to quarter that months part XXXX governance, our acquisition accretive Svenska in transparency has stewardship, like April social in we incorporated, year operational that commitment point reporting, months materially the published good acquisition due second reiterate but financial date. of incorporated Regardless, increase highly has XX results.Before the April this report

During the report resilience business greatly standards, physical our enhanced in approach Disclosures, impact and appointment and Financial report group ESG of for a Sustainability risk. and sustainability with that Reporting detailed management disclosure. Task XXXX, to Climate-related Force has enabled holistic to assessment of on most of best represents align accordance accountability a of we TCFD climate with functions global set the date, our industry of processes to This including performance Regulatory plans practices.Furthermore, team, the and Director appointing centralize and heads the new business level leadership

by continue truly XXXX future website Scope the program, questions. to Sustainability our risk production, though highly areas our remain for value and the prospects to in are And with and growing we producing is on our that maximizing now reduction diversified X and in multiple a profile VAALCO successful Even to past previous to our growth the we shareholders available pleased and our As assets, reserves sustainability about that, report X decarbonization sources XX% completely we the have we're you. under and our we emissions drive year. operator, are disciplined in has cash over years tab.We developing of have ready income. from excited approach The delivering report our flow.Thank take been future

Operator

The Instructions] from Chris question first Stifel. with Wheaton [Operator is

Christopher Wheaton

X I'll I said do only question. question know Al maybe. parts, one in one

wondered additional also $XX quarter-on-quarter, Firstly, the because that could would why year? related I FPSO $XX Cote Egyptian and I or a quarter. the of be between the your breaks d'Ivoire spending on you on That maybe CapEx, a ahead in identify seemed [indiscernible] that bit about d'Ivoire? the shutdown spending price really with questions. that million you Ron, perhaps if outline a that additional next payment much lower question CapEx a my the bit year.There's would receivables be to just was. more on of I if you it's And had to spending How that's quite helpful in referred what's additional oil low bit which realizations, the wonder that was Canada that down could in also Cote CapEx in to earlier, discussion be

George Maxwell

George. it's Chris,

we're has side, detail to little position initially. the reserves the Canada caused in CapEx what southern we've the the CapEx given area Harmattan doing guidance Obviously, On to Xth in resources the a the now in well as there. bit to increase part of of opportunity and increase prove obviously, out a

FEED FID Baobab, position XXXX. with to in get investment inside of We've the campaign aren't out to relating X potential of And for to regard also quarter first Equatorial right part obviously, FPSO that's the forecasts it. we're Guinea for that the added study So to coming looking the LLIs to Phase LLIs at in on number a Baobab. now purely the refurbishment for at but drilling relate also

of of FPSO the million increasing primarily, potential for that main So part on the LLIs. also the drilling it's requirements the mixture $XX program a are and

Ronald Bain

oil realization on QX. and it's take Egyptian between Chris, Ron. question the price I'll QX

also it's say The December down to EGPC companies were got their would the as you to XXst heard receivables a paid. related number outstanding have payments. nothing aged to And XX% I our its of part, XXst of as do started the the first with we party of that The got of payments related about receivables from books of of on XXXX. that. of pay you some may We [indiscernible] December

that in effectively, had. thing.The In that So it $XX. second Egypt, come relation price, did the first the down but we was EGPC domestically, average domestically thing there was to in cargoes QX, about sold realized

everyone the So trialing situation the was where that obviously been that a now are market domestically refineries. for basically was that to refineries locally, price those at in we they're QX, within so blend out. In was the the they've price that utilizing And provided.

the really in pricing. quarter-on-quarter. difference that's about It's down So $XX

Christopher Wheaton

new Just possible. of that $XX going refineries, be is mean more that in international quarters? mix if is forthcoming domestic if is Or a to versus being be sales? follow-up still be mean does of the that domestic it to this the is realization dependent the trialed with where blend to likely one Does going on kind delta

Ronald Bain

dependent, think At it they the end be I much through day, in very Chris. the went was will trialing of a that it QX.

continuing in locked that, EGPC's with cannot too. obtaining key to relation our we cargoes department in. And say to locally talk that's we're So marketing own

price. take So that locked as in being no, wouldn't I a

Operator

Stephane from is question Advisors. Foucaud next with The Auctus

Stephane Guy Foucaud

things that magnitude on trying we so Difficulty]. it's in when Cote of something than similar talking of have appreciate And XX% and double to CapEx of in of today, of magnitude sort likewise, order of Question of we the that increase? I was we -- but d'Ivoire, magnitude. talking also Are production [Technical back Are the early understand is I order stage, come XXXX.

also is So first that's my second Cote question.My d'Ivoire. on question

further Now that detail could term whether you're is was you the fiscal wondering provide perhaps the to. closed, I some exposed transaction on

was X%. case at is tax you or the benefit corporate But tax I looking government from? looks Cote whether sometimes whether that in the pool that if d'Ivoire. And think is pays wondering pay corporate royalty a lastly, I cost could the any you it So C&I, in the there

George Maxwell

we're coming impossible into to So right be back and operator, and on and would schedule production yet the flush to the looking FPSO. point around would -- a expectation. of that. post But sit information projections obviously, with have would at there's of be the validations that.Obviously, potential and timing of this from the of volumes. side subject FPSO some we the and the But that what do expect absolutely with But with that position would have time, the there's with received drilling down the that offline, also that the it. that. the understanding now, that's operator we've happening regard exactly time which to concurrently, also take with refurbishment operator. lines existing quite understand But the reviewing at would the model that place how program for subsurface work us on of would to the that obviously to coming say that lot we're the both going to works One in discussions production It's that's still our our a get increase the

Ronald Bain

in is through there. see our X, we've Stephane, go deck, supplemental model Slide it's Cote I'm And part you question. heard date. of with Ron. I'll of take the given In your correctly sure to I your physical elements terms d'Ivoire. you'll the if terms the on fiscal make of in up call happy the outside you to to that that PSC's second

Operator

The from [ ] next with Instructions] Bill Tieton Capital. (sic) Dezellem question [Operator Eaton is

William Dezellem

that, That's question that the guess next when the Svenska acquisition? Tieton for also. the start transaction, what with next look like? non-operated, I Capital. you with ready is that mind, pipeline And May given does is, And the in I are

George Maxwell

something focused it. taking been opportunities I market serious we're the the last think obviously, the And A that for growth and company this for demonstrates answer. years I our difficult opportunity we've was one record to the is about on. where track in set mean, growth X

our always are -- into from fence course, business, that a our that consider many, carefully something opportunities industry, there's are steady pipeline that looking the portfolio can absolutely many to under this maximize around we the profiles Yes, But paramount in it's we of existing have we the that post portfolios. fit how evaluation. start before into very always transactions d'Ivoire flow because in at the there opportunities Cote fit opportunity over this cash else. growth Of the acquisition,

William Dezellem

us remarks. And or was update referenced release in then to consortium what's there? your happening the you relative Could the press please BW not opening

George Maxwell

the basically no will. those DGH -- Yes, mean been been and I update there's [ of course, with the are discussions a movement. and and the is didn't partners reason I ongoing. we discussions of ] There's lot

I the weeks DGH resolve. think G&A with partners in [ in levels I multiple the call, the week still meetings had have XX activity been about or on and last said intensified. we've that to last we the months been to meetings ] points few we follow-up I have certainly in wheel a as But mean, the and given the this with mouse so. between X There's for X last

over of announcement we update there and still we'll And additional legal other be a outstanding which the been give only future some I'm come terms. soon. the didn't significant meetings. any in reason be So The to able movement than on issues, are confident the hasn't to an resolution hopeful contractual very to an near that is give that surrounding

William Dezellem

in have that And they the XX-K gave government far the interested interacting the in the seems than impression more past?

George Maxwell

more say obviously, would the been the since there has most been aware been, I the than with our change in of, administration I probably it mean, in everyone level a is has at that's new as senior interaction the had and -- the past. administration true.

that point state directly dialogue met had the So a we we level. of to as have happened, head the has and company with at have where that

seen governmental activity a X with than the months previously. yes, is the lot we've more in perhaps So there institutions last

William Dezellem

Great. And one additional then question.

time having you through through of to Would today time Guinea you're progress made the appreciate good there. from line, where go now You referenced you at takes and the it some that if amount I please? the would, don't walk next Equatorial stages. us think I

George Maxwell

that. Yes, I can do

That So obviously, commercial I for with ceding this company, And to as included a by in to we've terms, the some been in now Guinea. been equity since start journey ready outlined completed, been trying partner facilitated been which has that MMH the in resolution additional we've we've as partly -- been process. months has change group. Equatorial to VAALCO get resolution that a XX in

as and for -- plan us, get X economics before to that is to out almost steps study CapEx estimate such time our standpoint. spend to just the in based point, the or the even detailed and to OpEx that there's in and as analysis analysis FEED the plans the spend from a to project engineering projects in how a would can not And development, a detailed of return that on more the also industrial the at lease sync. position. to And Venus. for the CapEx and/or you -- desktop our reduce optimize a is The And essential FEED CapEx commitments study. potentially plan time engineering done around the conceptually take us go we a trying FEED of changes all price so purposes a environment both FID will mediums to studies attractive We level lower development final those then with subsurface replace the other us on from perspective plan at to with X are cost for development concepts test marketplace, complete that CapEx And are line, and at certainly go both therefore, -- that FEED. contracts the we're in the make the One reduce of So a both cost study. least always part get into locking side.The and line CapEx forward our study. the development.It's to about spend, equipment we'd reduce look are major to objective XX to the from the that's months then basis make and there source we locking for and gets of the we're at cost equipment a but cost, a as that for

So that's available. ensuring require project addition study in we that to the main objective the the of to the execute is FEED equipment

Operator

follow-up Advisors. Next, Auctus with question Foucaud we a have from Stephane

Stephane Guy Foucaud

It's from a a acquisition cash available. the and question bit Bill about on of follow-on

in years. as I well. So coming Cote be But d'Ivoire the intensive EG for would me CapEx guess

Part X, in So you resources about of large thinking developed projects be same time? how context the the deployments having very are or to cash cash at

Ronald Bain

I correctly, line Basically, got FPSO obviously, your us operating flow a your if is year question, Yes, this off-station. bit goes little cash for before sorry, vague.

the X have We've and first facility but as And different both see strong up through in place, we mixture than a new will institutions we're as got a years 'XX cash those we in facilities. we're operating spend. should point we're going of of end foremost, spiky time, flows flow, I CapEx financial be -- a We're where there At projects.Because number of and looking the for cash some being in to between operational periods the facilities. to looking that. there, the but be relation spends. same are in now CapEx Our Yes, your in time to covering basically track more flow got year. well or these financing talking at cash development utilized we're 'XX CapEx

at looking working of moment. can't with the into that detail really those we're I at what still that's Stephane, the institutions. So go We're

Al Petrie

question when that pose get is, the Operator, I coming to email to Thor. that do soon? George online that And and Canada I we a drilled I expect we're on that we wells new that in the have by we results received said

Thor Pruckl

Yes.

that. I answer So can

So the expect type week. Both wells above tight -- X -- a on the first we wells are cleaned Actually, in the curves completions are the are cleanup are on well stabilized flow, well X and curves. up X drilling program about and has are the that first completed wells online, completed third X program flowing, wells. is fourth

still is know about we'll bit in a week. and more a the third in The fourth cleanup well, well

Operator

CEO, This Maxwell, to concludes the would conference back closing our over for George question-and-answer session. to I turn like remarks. any

George Maxwell

Thank you, operator.

very the company pleased QX, another where parted -- [ of for results ] be well. to I'm performed to it's has I think successful set

performing are assets well. Our

that much shareholder operation. excellence that operational We see of levels in the where continue guidance efficient each asked production we the company And see to once more when diversified operator. value our mind, that inside and the as We'll sets in to plans much. on talk skill each able And guidance Egypt XXXX, add We we in end, to discussions become have quarters its through about build the Cote for very continue can And a and that's sustainable the are areas more we and performing coming we company the of look in to that just maintained. we thank Canada look marketplace being base.With streamline a able our we've of and longer-term -- portfolio that, couple be see much in areas to of mentioned for Thor of had how as starting is more of delivery. the more with our questionnaires, at in question you Gabon the where can opportunities to be we're in what operation improving. and to in d'Ivoire that by

Operator

one have do We Sharp Canaccord. question more from Charlie with

Charlie Sharp

results Africa of look it, is I question if a QX, of very workovers first I to Egypt Just really that looking for follow-up particularly XX and is you less terms good. and West in program? you it to the question longer that In is, good, then what been compelling projects it uncertainties? allocation, you make looking X have slightly workover bigger Is Canada guess, the less is commit now to quite months may. quick in and element question the Egypt, might or And perhaps Egypt in of you really one of capital issues given with X others the the them sort the the ago? there half particularly in range second did of that than have,

George Maxwell

parts a of me in it number take Charlie. Let there,

first to Egypt. with regard drilling in The the campaign thing

to a and the as of right additional the The availability million have opportunities the drilling availability XX $XX key contingency rig well around campaign. execute to opposed of access campaign the that CapEx spend to with an potential drill. equipment we XX that of drilling campaign target we now as So to is around of

contingent -- So if and overcome that with will and we the for will secure are in can elements, where additional we add drill issues because Egypt even it Egypt. primarily improve year, positions those we XXXX, will in allocation PSC will this production capital inside the

would more start pass restricted allocation, be more I'll allocation.And the be become Ron. obviously, in capital economic in to some Now the of compelling, if drivers to will over that then and capital returns far we

Ronald Bain

-- would that mean, number going to I got of Charlie, is things what exactly a on. right. I add George We've

is As Egypt, liquidity it's liquidity liquidity you improving. problem, know, a certainly problem issue this --

control World inflation the UAE currency, the to they land on saw saw Bank, interest they ], [ devalued you well. the You sales that had obviously, the trying rates the as

in were positive So going of number more there peer a there's EGPCs add unit. all decline we production with be we be want I to it's where it looks thing a be. second in QX looking workover maybe as that and a are.The of that working And in It's the relation is to closely slow as bit are not imminently other as in going obviously, group we're and to certainly would ride things QX, Egypt there. But taking a everyone our quick state XXXX. would to

unit. in, be QX. That a sourced workover will we So taken second in

So through effectively the units through we'll X next have workover X months. working

campaign, will drilling arrest help units on the discussion the certainly decline. of X production regardless workover So

Thor Pruckl

rig to and just drilling we're does If drilling does the can only actually rig workover the add the I the workovers. that, when drilling in Egypt,

the rig, purpose that So the we're program workover workovers, in rig order up. second support to to when exact in for minimize starts bringing downtime drilling on wells drilling the that need the rig

Operator

question. last the is That

conference Thank now concluded. attending presentation. you the today's for has So

You may now disconnect.

VAALCO Energy (EGY) 8 May 242024 Q1 Earnings call transcript