EGY - Earnings call transcript Q2 2024

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Al Petrie

Thank you operator. Welcome to VAALCO Energy's Second Quarter 2024 Conference Call. After I cover the forward-looking statements, George Maxwell, our CEO, review key highlights of the second quarter. Ron Ban, our CFO, will then provide a more in-depth financial review. George will then return for some closing comments before we take your questions.

we a to follow-up. session, to your question-and-answer and one our ask limit you questions During

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

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

George Maxwell

financial allowing EBITDA. XXXX Thank production Operational you, and Al. strong adjusted call. key grow is us including conference earnings Quarter began and to adjusted to everyone, We with excellence and Second Good consistent EBITDA operational results, morning, earnings our delivering XXXX positive to welcome generation. and

or For have exceeded the past production met we guidance. years, our X quarterly

strong strong share to due in April, high and million end in Gabon. a results our or and in coupled Canada us results at at executing per quarter, EBITDA to $XX.X over or in to which grow workover guidance. earnings to $XX the with line second Egypt, deliver of we and This Svenska are our and Also, uptime the $X.XX million. above level continue is drilling the increase helped closed acquisition adjusted We to

to to our beginning asset on deal to high-quality dividend, We third like as portfolio cash Cote would a of the acquisition and I and April our in quick through We now a assets, an newest efficiently give QX diverse well. quickly for and return quarter in on with XXXX continued our go shareholders dividend XXXX. our we quarterly $XX.X update Svenska through announced pass XX, all million d'Ivoire. in closed

the to We been with key oil. support our at to meet on of results asset third-party provides reserves the a XX% of with barrels we we've solid equivalent as and XXXX partner million Cote initial reserves Hydrocarbons with traveled is reserve at acquisition that of introduce another strong as potential. our a have metrics, estimates, VAALCO oil added price. shareholder too have very attractive to to CI-XX. net significant exceeded XX.X proved on SEC d'Ivoire of Ministry directly future upside in accretive year-end engineers, officially Based team highly new Our Block This and asset growth the

semantics previous in Our increase the reserves XX% further were CPR equivalent. oil purchase. XX and This acquisition working million barrels XP of interest improved justifies with reserves associated the

FPSO and XXXX half will with Cote Baobab in provide project working in planned future additional and d'Ivoire second operator the of XXXX of drilling plans. Baobab on are We information the the

March those to wells on wells in Turning the and of online. successfully in quarter X XXXX, drilled Canada. both completed wells We April first

lower The the and new production all production the As exceeding was one IP mile rates wells type liquids. And overall XX% had the in X the laterals. show Canadian To in our with type the a we was rates strong and of reminder, of X.XX the has improve liquids. X wells, XX% initial very curve. our QX, longer rebalanced feel contributes economics which to laterals wells performance curve and X to strong favorable about approximately QX, of are the Canadian of oil impact in more our production strong Canada, profitability. liquids, the wells production production program

As the continue drilling the our coming curve, to Canada. wells future in potential and optimistic are are with type they produce, in line we about

of last XXXX lateral In potential As well is Southern we as high have targeting long horizontal prove the proved an minimal Southern well Acreage. undeveloped successful, third on the exploration are XXXX first focused we also I our rate is in Acreage information this to call, to mentioned of the the locations. we wells workover future approval capital decline. with of in exploration disclosed last our quarter, Egypt, subsurface and add projects return mitigate to help additional in quarter In half

oil very of As barrels you day adding combine had quarter strong X [indiscernible]. saw some IP in you recompletions XXX the release, second about in the with earnings X when per results, the we

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

safety, X over all people completing our in minors time and that million a had in lost the the This dedication this a third of to cemented of incident testament field. grown have is training year. of to quarter We

XX drilling contingent valuing well mentioned currently of the the are rate. last on that of This and confirmation Egypt. completion drilling evaluation we on program XX in the we project program I to As have call, remains

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

$X.X also million, when we production. additional we proceed anticipate However, the will of program, with genuine CapEx additional which approximately

will in We production XXXX. some see additional

will of early production production. bulk the the XXXX impact additional However,

payment receivables. from will announcements receivables, Ron in regarding of a very the is positive the encouraging. some seen which XXXX, into have details in government more We go particular, Egyptian

impacted a and QX. was the In into issue. platform had in that maintenance due an Turning production we But we in to the to issue not Gabon. second third turnaround was now This third quarter. Etame by will platform turnaround Etame [ the the was have when the Operationally, safely, we forward back quarter, issue, planned ] the in quarter. online addressed moved platform brought

production midpoint You that movement QX for just per under the the to notice of our X,XXX will above barrels turnaround exactly production the of at day Gabon due QX [indiscernible].

well the to in haven't downtime, we projects that in pleased Given overall with and drilled over production have Gabon improved a efficiency reduce and capture we the year, in a OpEx. field strong allowed on overall and are uptime production and FSO declining us results minimize curves reconfiguration well. XXXX The positive

by on to supply tone, a to and well drilling XXXX, well infill and will well grand ahead this XXXX, we our wells gas dependency for proposed well Looking workover X field includes plan we initiate prepared and subject sent an The OpEx infill exploration Ebouri. half redrill reduce that the reduce a program firm executing diesel our X-well of and a in on and fuel first program rig. have a to XH at

in We the analysis we have completed on previous that highlighted quarters. the Ebouri have

Projected downhole that cover should the place X existing throughout them increase program a upon from This campaign be new QX, [indiscernible], contracting, not resources that company and will into required. the can process. that XXXX drill and we treated conduct well anticipate CFP the indicated Ebouri chemical the study one early on full back will in that reserves and to production to wells a option to The sweetening has injection outcome positive We we workovers of be completion. costly adequately chemical and initiate is QX expect the allow continue CapEx to with for more therefore, plan the late will this contingent XXXX. access

we present We will provide when more our volumes and guidance. XXXX detail and budget on CapEx

The Our taken documents illustration have This slide million today's of arrangement includes super economics GEpetrol. partners, of expected we arrangement and of finalization is announced in at the included $XX on forecast. place, on our related XX to the accompanying previously X%, and an of March those block that we have XP the Guinea plan XXXX items carrier included XXXX, Atlas spend signature these between million. noted previously which bonuses Block terms announced included have deck. rates lone and development. discussions XXXX the we is CapEx Equatorial in Further remains G&A on commercial for our in Venus P plus This our and of of about on XX.X%. finalization agreements CapEx as On $XX a

engineering enable feed We We or the with study. an front-end our to of sign FID, final the completion which Venus. of will team investment decision, economic now the development proceed anticipate will lead or will

first expectations. exceeded once begin our have over discussing forward have our analyst to plans in on we years. to to more hardworking with would and guidance results remain team Block solid shareholders. financial thank this for XXXX, operate is like in of half from value execute and the next develop, Equatorial to delivered study We Guinea or operationally In P the to are continue and our production, plans. operations complete. our growing our the focused I look that the detail We offshore few discovery production operate to reserves field and We of the new excited proceed outpaced

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

turn With we the projects well our the success are instill that, of enhanced share record years, in in our portfolio the few execute call over would track in to We like to financial proven I positioned our future. to results. under to past Ron confidence

Ronald Bain

I George, some key focus into points. results for insight with the on you, will drivers morning, Thank good a and financial provide everyone. the our

by operational performance. comments George's driven echoing by our into begin me strong continued our XXXX, success Let about

share or positive May. net $XX.X our adjusted both The acquisition, the EBITDAX, around in first in We increases some the per and income over first second $XX.X Cote Svenska quarter significant in listing $X.XX million also quarter. generated in saw from including million impact d'Ivoire

pricing Let's revenue. and with drives turn sales, to realized our along production which

driven full to the in of exceeded we've for for that with a acquisition. the completed the reiterate mentioned, production up sales Cote by X per George in to looked always like QX, help growth volumes following across to of producing guidance. commitment over will May you end quarter protect remained and of and As received ultimately, portfolio will closing the Pricing oil risk the picture program past and above day, mitigate year, listing to assets. of NRI the increased d'Ivoire portfolio in of midpoint shareholder earnings. changes the met our with our of quarter, return. June. has each expanding of I'd hedging payment realized bigger our the the production and the impacts in guidance higher look mix barrels sales equivalent quarter-to-quarter the We areas. the pricing Total at But at mix sales our This from and have X,XXX years, the change you of our of d'Ivoire from producing the we revenue assets, the if for and production our second Cote or and see incorporating solid impressive in guidance our and XX,XXX diversified

hedge earnings the current release. were Our disclosed positions in

Turning to costs.

noncash quarter the $X million acquisition, in production d'Ivoire. in month. expense Our purchased for but by around impacted expense VAALCO expense rules, costs purchase Cote time the that ongoing were QX production prices to expense. the $XX this on second the mark-to-market production price when an recorded basis our of believe would GAAP the midpoint the related inventory adjustment the per production below at of We and May, have in acquisition million had dropped, lifting a been to occurred noncash corresponding XXXX d'Ivoire adjustment, was will of According purchase is be net guidance. Without Cote

work back-office that growth We per by single prior implementation with cash Our they a the in were also across primarily efficiently GA with due costs across whole multiple in the depletion the focus allow increased the flat and QX quarter-over-quarter, capturing company to And basis, cloud-based XXXX. our of flow. a to to maximize while us Egypt costs and enable addition to Canada synergies were rose basis, the in depletable year, process decrease the the remains will improvement by absolute the offset and keeping barrel Gabon, lower Compared QX d'Ivoire. go margins world. across should Noncash Cote our addition costs on line absolute an partially in XXXX same ERP costs offices DD&A d'Ivoire. costs virtually guidance. Cote to streamline driven increased and a with our DD&A in increase saw per of associated with project due low a on on to and barrel commenced they of us costs we located and live quarter processes

taxes. Gabon in-kind And we development I've QX, we payment a for have May. liftings. our Last oil are mark-to-market reset. the to would through the discussed that million taxes listing $XX.X government income our lifting in Moving their in taking in-kind foreign through settled been of as the oil previously income the foreign we call, We've taxes kind. in by in QX, oil amount a Gabon, has stated, settled as oil discussed In in-kind of barrels past. in With government

the term, in near fluctuations impact costs back about second tax resulted $X.X of have the Tax build of listing So associated the as as not state gain in was and transaction price an than liability of to of the million in of nondeductible effective in-kind transaction. settling until rate a quarter. the up. will an prior quantity regarding to oil This the tax significant costs Svenska lower begins and barrels with XX% by each driven such in quarters bargain items Svenska the about quarter

Excluding the effective XX% the bargain tax rate gain, quarter. is the for

projected over new long term, excluding to rate Our XX% items, range tax is XX%. the effective the discrete

the the oil $XX.X the to In the to is in $XX.X Svenska associated end there proceeds million that government and Svenska like cash million the of balance flow second as also noise million the which it like quarter the acquisition. rather the than I'd million and taxes quarter due spent paid shareholders. was this in-kind factors. the with statement to out an cash to to lifting received would. $X.X receiving at some dividends that through compared Unrestricted statement. CapEx means point VAALCO settling now We million, and lifting, in normally $XX.X our in $XX.X first regarding cash cash which to sheet down returned we for the acquisition. the settled cash point in through cash out Gabon flow I'd we was several QX, we Turning

drove with receivable likely cash Egyptian that quarter sold deck supplemental We cash on to Svenska to slide assumed June the accounts Egypt. flowed discussed production activity to domestically, through will a operating the related million Last help section activities, movements in investing in combination. capital have business the received that of second to In explain VAALCO all you purchase. In presell working was call, that waterfall books primarily the movements. we we accrued the which liabilities the our showing XXXX, This XX.X a had the higher. see

accounts we of million Following for an the $X end the July, quarter, Egyptian did receive in payment early receivable. cash

confirmation reduce effort and dated work its situation a with and million. has step minister their to related to March IOCs July each from backdated back the recognized payable forward Additionally, EGPC has continue EGPC major payments resolving in provided now XXXX. the merger to written our made with Egyptian is PSCs invoice approximately to receivable concentrated This through of and oil which to a the in payables government, of are $XX with new demonstrating the prioritizing pleased contractual and the June we payables bill

million been in the now have recurring million facilities third share $X.XXXX has of In to quarter have As XXXX, the XXXX, returned $XX and In shareholder XXXX, credit no to VAALCO paid quarterly continue QX almost available since $X.X common or we bank a value. absolute. cash build returns. dividend per of case debt

which We will third be of paid also the dividend the September. announced payment year, in

closed is both with seen slide our the for turn only earnings I'll in the now to interest full asset in Svenska and in second quarter interest X I and includes the you by acquisition, where the key revenue net you now our want full which on of will me updates. affected the deck to quarter. breakout and that remind Let months Also, guidance give supplemental website highlights release some guidance, guidance production our impact breakout third be and area. recently working

to second XX,XXX production NRI This oil between that be barrel the timing XX,XXX and and per barrels equivalent For to and QX the of George and the XXXX to forecasting day up acquisition turnaround quarter due to the are Svenska day. company, between full working compared interest oil of the discussed. XX,XXX total impact is equivalent due per we XX,XXX Gabon of

For of to company full XX,XXX total the XXXX, day. barrels NRI our unchanged oil now day working oil of barrels forecasting equivalent and between production are and between we year interest remain XX,XXX per per XX,XXX and XX,XXX equivalent

we Looking Gabon for are in decline at expecting in by the production full Egypt. year, asset natural

in program In seen d'Ivoire, reflecting first to our through And half year-over-year of Cote campaign. year drilling December we mitigate May from and the has full operations growth work year capital to the decline. in we've Although in from the Egypt Canada, some are our helped numbers.

year with third we're the For in assuming or be and quarter the line our will less production. more our XXXX, full sales

due costs in Our to as adjustment into quarterly previously. Cote the this full and we we that price the compared equivalent flat to expected G&A costs, due volume. costs go this down adding are adjustment, to expected for Normalizing projecting all due absolute expenses to We're are slightly go barrel purchase absolute QX. per noted running operating then for to operating operational drove of to QX lower the will in d'Ivoire to higher costs the year up our also range Cote expecting the Taking additional decrease d'Ivoire. normal consideration, oil noncash

between our and drilling change-out, at program. drilling XXXX CapEx, spend million $XXX capital and Gabon XXXX the in million the completed campaign we as anticipated for Finally, FPSO next Canadian is largely $XXX XXXX looking prepare the

to executing are should adjusted and quarter, half between and meaningful in our on EBITDAX sales, expecting for this third With the million are $XX flow $XX cash forecasting we million closing, increase we in generate range CapEx. ability value. and of increase we the adding In a of For our XXXX. are we our production additional meaningful operational and also acquisition, trend a second strategy

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

George Maxwell

Thanks, Ron.

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

As very has half the profitable. heard XXXX first morning, been you this of have

$XX.X generated in $XXX We have per share $X.XX and net million in almost million adjusted EBITDA. income or

of sales, With half a second the the the flow acquisition to production, at the see for we adjusted positive of barrel of Svenska of and April, the impact equivalent, closing EBITDA end year. operational per OpEx will cash oil

pleased asset drilling Looking across our base, we are Canadian the with results.

at planning are campaign the in we Guinea Equatorial progressing and Egypt. while executing a drilling We study TAMI, FEED and workovers are optimizing in production

slate to years, entire a Our on I deliver having shareholders, next our X commitment actively and will deliver market sustainable few and projects the our gained results. to we the strong the that over have to exciting organization past have the over working years. growth of continue and is credibility we believe with to we delivered

We financial bank are an and future assets with producing portfolio in upside no of even potential. enviable a debt position stronger with

capital QX to In value In addition XXXX, we our on our dividends. to shareholders have shareholders. our $X focused we returning through to funding program, remained returned million over

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

our incorporated to expected Ron to has guidance As production sales Svenska discussed, strong XXXX continue. and the acquisition

producing under profile and about have the of VAALCO prospects has future and sources future risk areas We income. diversified our excited multiple are truly that

growing past developing We in over assets. our many we the been the because successful highly ability largely projects our confident execute have and to ahead, years X are on

far, growth ready by have Thank Our disciplined production, into of flow beyond. momentum with that results operator, and that and cash our you. we expanding value carry are reserves maximizing led for will to take we the questions. that, believe shareholders and approach to remainder delivering thus And XXXX to in we

Operator

Foucaud Instructions] [Operator question And with from the Advisors. first Stephane comes Auctus

Stephane Guy Foucaud

X. got I've

could end second June? risk Does agreement And agreed, volume sort is at Egypt an that comes end it? would Or the my September particularly, when That of million $XX be receivable been in? said question. on just could is of around barrel program, The the the about first has that something first of that be million in Canada the potentially has HX. been the the of one added be was balance by that it this question signed. What the order in and on million the by $XX already is and in exploration this idea sort my of program sheet

George Maxwell

And back leave Thanks, Stephane. come done Ron one. is I'll question. that, to once the first answer the on I'll second he

Ronald Bain

Egyptian basically TransGlobe. over Stephane. therefore Thanks in was that contractual that's backdated the George. when the Yes, to receivable, relation we receivable took

and we've in has effectively, net of relation So really have departments XXXX. now. to an at we've it get is recent sitting And position The TransGlobe. invoice to in booked EGPC. resolution And of on was where documentation. since June there October the confirmation we're payables, prior agreement end to the for long in signing have But areas looking us the the recognized that those the X in now for XXXX receivable managed been the their they this agreed of values too. We've that been each been given been got process to through cut. now path purchasing a day to take, the we've all got It's but

has payment it getting before at all. any we've there's anything It And glad be any that to else. So payables to it's like chance on registered on succeeded I'm their see part. on you're

Stephane Guy Foucaud

as already what the I receivable VAACLO rather balance Sorry, than not? or is that meant meant sheet of EGPC. I in That's

George Maxwell

Ron. We will that? lost did you I question, Ron answer Okay. Stephane. second the But hear may have

for We're the the of it's performance this did we're what Roughly, reestablish would the I and well in those looking gain XX and do Canada, looking type Acreage. Acreage the the and million also X curve that a we're is reserves some million Southern below further play drilling with well. in there, in is barrels. think reestablish well about with And what lost to you to north. the so trying reserves ago, Southern year So to open exploration do a or between in to came exploration try some we

encouraged quite we September this well and will going looking we're enhance program that spud the further that at So into in XXXX. by hope to

Operator

the question with Stifel. from Chris comes next And Wheaton

Christopher Wheaton

was moving there progress of update first I'll a do for you different oil? half the in that probably FID. Ron the therefore, inflationary At question, see you absence, need to that environment also, Equatorial the ask it's slightly what if cost towards cost towards second services Guinea, actual for George, I good seem at construction first you the update Could and progress think or And timing see after an though. point likely development which they given be we to moment. in of still to the offshore development, on

George Maxwell

that think I And as plus don't did XX and months ago development, with initially before, and million. FEED that going was fully the X a to mentioned plan is I the for this spend what it's CapEx costed around was gross about spend that through of CapEx tax was about plan together The it short CapEx put $XXX [indiscernible] of costed. and was more we fully Okay. I've efficient wells development. much because study swap reduce the of given a tenure try somewhere OpEx for

there are some level a about still to through of the the to story bit services. we're inflationary around of OpEx pressures course, down lease and the adjustment [indiscernible] Now million trying $XXX through the this is on So increase to position that little there reduce achieve growth of CapEx

States. here particular where output units part jackup study, few arrangements. we United can available and at looking have the you're the quite from older of the aware, as However, some opportunities converted we'll those are FEED be rigs And there the in lease a the into [indiscernible] through of go of

that, that to the hoping where to would increase for and the need So would be in get of at a us sometime first get Guinea, kind to advising campaign of to drilling, that Equatorial profile. into late we which the any to right come to of we back a equity for now, it I'm allow which on on in then get may cost I FID mid- piggyback allow point lot structure 'XX a to wouldn't we get planned Gabon us will and 'XX. oil of we be that look

Operator

And Robertson Tower the comes Research. Water Jeff with question next from

Jeffrey Robertson

do the there with George, past. the FPSO in detail operating the in for CI? on is will any capital time up be d'Ivoire, significant while from in the additional costs you've any incurred lines? will costs FPSO change operator you provided line Cote all cost on station, the have what And Or out the the

George Maxwell

Yes, no change we the I station. the any a that's At a right significant have vessel for good to XXXX the We which shutdown not we mean, question, tooling obviously, discussions having update initiated, those now. moment, what is was OpEx. QX do in anticipate Jeff.

project in we'll cost. go on retaining at XXXX. The are ongoing won't that to back we're there obviously, for being looking presence it will refurbishment the operating will as FPSO be the through into fact, station retaining main and but significant. get of the the time focus Those the In those during line costs be costs on still CDI, part which because But ongoing retain XXXX. those capitalized period of discussions are

over cost sees we for come the that and plan in earlier, program that, year operator it's to for and for we what the finalize I and the the as to specific to at well. finalize guidance can -- and more provide structure give around to we our and project to leave my plan 'XX, So later we the planned is and XXXX on linked and position vessel said when to when that that this it's as be in lot with slide when it's point everyone budget plan when be detailed commentary will we come drilling detail a that going for will timing XXXX come when position Gabon capital back of program where

do to going our probably it's fund year, this of look when have we at mentioned, -- and to debt extremely that we'll confidence that, and But towards period. cashing than be give sheet high, be execute through we ability also the are but levels as more the to So end lines our coverage able to free, remain detail we available to Ron there. balance more debt

Jeffrey Robertson

Can about [Indiscernible] aged with market? sell the the payables opposed Ron color oil domestic to to progress as any you into EGPC. discussions market provide around export with talked being on able

George Maxwell

mean, team you different meeting our team, always that is we of small Yes, currently have That's in to bit. we're in tell, planet management with can a make speak management CEO, I we we're a a so member we the and -- senior, as with the in can Alexandra. reason right quite as the do now. for Egypt is governments senior actually little sure Minister meeting various parts

have now So initially, the discussion, don't but improve. made We minister refining refine ] Egypt. we're balances, looking that charge outcome a too, see the we the is mentioned because position position can with the it's potential are in of both -- we to and investment down investment, the each aware, to forecast them not ] are corporate plans have the type on of for commitment crude detail optimize for we what the don't XX-mile the not tackle of looking encouraging. And but to have drilling of country. not that you're -- I've sure made as has which the seen statement to Rascoude that we At we But publicly. [ that moment that make moment, XX% could for cargoes. aged EGPC, of paid ahead possibility the And program. how in receivables we're We've we looking we [ that's case. at waiting and that our to initiated see they accelerated with They that an sufficient with see export the not

looking rest this move in bit from still compelling the for of, a sales. to we're need great But Egypt. of a opportunities we think just see saying at one. with I in it as I We So and one to year, we're said to just see deal that profiles domestic a that, little at the encouraged point,

Al Petrie

VAALCO for the before George. disconnected Ron receivable with now. I you confirmed the was on was texting and books he after that early, got

was question, for the So yes, Stephane's already booked. receivable

if think not I I'm back trying Ron get you actuallyâ€¦ sure is to in.

Ronald Bain

the back Yes. I and customer communications, travel can on but back online. get

Operator

And the Charlie comes Canaccord. Sharp with question from next

Charlie Sharp

to to I able to I if in when might some just of may, additional might expect you what you from us planning drill year that on wells? sort clarify, wells provide you're Gabon wanted production next guidance and be the those to

George Maxwell

No volumes of the problem, wells X wells to wells to or X got to look in million X probably on further initial of the million X that's barrels step-out exploration as overview somewhere pickup. [indiscernible], regard of volumetric little which wells resource. we a the been of well of that We've that On on give but and through excluding the are a With a gas position. north an coming we Charlie. XXXX the We a to in brief guidance, lost going November that start I our contingent basis, call position went reserves effect the of the X out may of also At or we're moment, in hopeful in is we'll we is more got firm. we're to contingent additional mixture and give we a bit will very well come given I'm program, the planning. reserves around that's that into include program. we've redevelopment -- kind what we've targeting see the -- of We've probably key improvement kind X risk really well. on what guidance

on bit likely the a exact reserve broadcasting IP final and But on in pickup rates targeting. be that. land the November to exactly can be we're to but that's the continue you of may we're positions there more that, well and sequencing for So study what little we'll

Charlie Sharp

you And and for still Ron, just if on. one finally,

think full sure really I was just if the Svenska I be related wanted that that understood indicated year than there I Or operating previously. cost for missing are that had you to 'XX, else you've there? was acquisition? something the was higher to

Ronald Bain

Yes.

to April think company. I I mentioned costs that's in inventory FPSO, the had in acquisition XXth the script, So on gone up. the there, just that because made they when crude really my purchased of have the we production see QX, Charlie, in relation oil Svenska you And

then valued It's and market that oil that at in we to crude then, market. produced May. means mark effectively of is course, And we that price. So basically sold

through cost of And so market when that accounting view, the roll we an do mark-to-market at you that and price. from point

in will that nonrecurring $X in bumped obviously, up XX our million per it would of each not Cote cost quarters. in will $XX we run And $X So that that's month, opening see million, net about it's -- costs noncash, comments you net. d'Ivoire the mentioned about by the quarter. would and million there other it's see it in I my that, also typically

Operator

question comes next Tieton with William Dezellem Capital. the And from

William Dezellem

going that would about your back those George, to doing the to what wells you are time is comments HXS that may return back line please you there anticipate able production? it you be to be and circle and into the

George Maxwell

I the injection Bill. and problem, rather downhole can a cost study sweetheart mean, process. No now I Yes. than we've, more where chemical mentioned, we completed as mechanical

and campaign, based -- server in completion sequencing need Right we these good the we standpoint due we're So on come data now, subsurface news. that's back at And into update of able wells into them the quality be of to production to with get brewery Obviously, that profile. from more a to downhole. coming treatment that's and the the to the wells as planning production, end able campaign in add that's through for being and that are primarily equipment the the have. model very structure is we revise existing we'll more start we modeling

quite those to times are lead beyond. extensive XX and So up months

we platform moment, on do we're that to then pull But time. early So and the wells I will of program, end [indiscernible] on we as at they'll certainly delivered as can work say, program that the the if prolific the equipment for are given the possible. be those at they course, the reasonably do back back that [indiscernible] allow arriving to forward of end of by earlier, be as the at

William Dezellem

shut please you total what would on production is the in us remind And those HXS wells?

George Maxwell

in, Well, as chemicals. them I that's still a using but -- day have this at were and think, they XXXX, so it X,XXX shut in, one for piece barrels production I to moment, when the is were think the there was program about numbers, test and was I'd one the shut Ebouri we've downhole been in But doing the actually was a goes the XH of back sweetening shut for that to it X,XXX to check shut in. in

William Dezellem

HXS. shut And to due it now that's well one just is in

George Maxwell

It's right now. only well in production one that's

will and that shut do line we're some are when the efficient is production. What on the be [indiscernible]chemical particular will to sure functioning, an fully that wells to other existing make The we do to comes is injection planning to work more enhancement in. it well well it the make

on to will specialized a We the that equipment. XH that reservoir. got and -- one what favorable do the to reasons the of sidetrack well also need give location the -- within was And to that X then then X that's one on more are completion move to and the it these reburnt we've -- of a we

and optimum redrill that X the ability X planned back to levels. workovers up to get those are citrated -- So one are production

William Dezellem

those that understanding that the to enhance beyond will drilling also be correctly? [indiscernible] there wells recompletions. you through additional then online production worry the Is bringing a wells -- back And at

George Maxwell

running where next. additional that contingent will we need we get these program, potential -- the are the There X wells and in go but to first ] [ Ebouri determine first, wells up and

William Dezellem

a on Congratulations sold quarter.

Ronald Bain

little [indiscernible] at being add shareholder. there wells in to shut a Those to as I build relation George, was reserves. interest being smaller when color it working a VAALCO in were a long-term much those bit in looking well

we're on XX% at we're interest. Now back on, bringing back nearly them bringing working them

able And that working position. So hopefully, coming in kind greater to into of [indiscernible] flow with interest with way it our too shut VAALCO. the be we we'll now

William Dezellem

a had overlooked. great point, I which Actually, that's Ron,

that with to total greater would wells? interest, at in. the account is the -- were wells mind, were expect what at had now that you if they production So flow what your they those into shut that the rate from flow is in the But working the time taking

George Maxwell

X,XXX I barrel X,XXX what mean I saying you to Bill, in I Yes. was in was our position. lines was the what giving before,

factored in. I already So that -- that

mean, is interest be we where model because we working no where end perspective. getting me, back a in ] do contingent model production that we that's But here to from where for model, match this the opportunities opportunities may yes, opportunity there enough And points better field what our I wells. the drainage then that having see give But the have accuracy perfect. study in program the us BOPD for of the lies me against sequencing, some and time So that does multiple for wouldn't history for key additional program. existing with is thereafter. drilling And the [ additional at wherever the there place can there because

Operator

Foucaud Stephane And the next question Auctus from is Advisors. with

Stephane Guy Foucaud

Again. Two quick clarification. follow-on

is one about Egypt. first The

target, condition the to about year, doing? other export that to have to payment that Egypt some -- condition soon talked which are maybe other looking an have You that things part Because understand go of to need we the fact would back mind the drilling. that to you like go I the but is required for only are in back that there is not you're anymore, from you second they

million be a to purely XXX would related acquisition? Ron, the think Cote something EUR And capabilities great. I compared big the confirmation to for beyond So that is time current increase? Or jump last -- the dâ€™Ivoire there second is that's other of is

George Maxwell

one. to on jump I'll Okay. the agent

with is correct. the can said Egypt. extremely that need that too identified. looking got We make works anything for that some exciting and compelling types that drilling now. drilling to wells economic the right You're for discussions do of still we and get think the make compelling for immediately. economics And from condition I've Egypt program supplier kind we previously, becomes rig. We've of of in that as the in and having that rig right execute sure pickup I we sure to We're the There the we're goes

So is not -- the secured. rig but yet

are available a Egypt. is there now can as we were I answer, mix yes, crude the of so export in in be refined not previous explained looking probably given And the that cargoes, export the for cargoes

the cannot to be and and profiles program, to see our we'll existing opportunities Minister investment are the execute take we we positions and investment these to quickly return we'd there, Egypt just [ very -- get. enhance how how see get to forward's and inside the this ] hopefully, position feedback accelerate up. And looking where from positive we're them today some visit So because but keen

your one. this profiling the question, invest answer to Ron country. we answer because returned. we cargo said how changes export to So must we to But an money, we I'll next going leave to the yes, as are be the no in we've understand see looking have it's longer how

Ronald Bain

that. mean, the out that, it would our comes obviously, is up you is look liabilities Yes. up I the color be No in if I some reported XX-Q it of breakdown question your predominantly, $XXX increase to there Svenska George. million, to will every at in Yes, when period. about tonight. when that give The accrued And correctly. I half relation picked there's Stefan. coming obviously, problem, transaction in. What to, in probably

look but -- turning QX. year, QX sorry, a move going and it's in is certainly into certainly over long-term would half about to So more of it next not not it of It's item. probably

Operator

Thank question-and-answer session. concludes George to like conference Maxwell to would turn back the our over any closing you. comments. I for And this

George Maxwell

and another solid through call a the Thank you XXXX. -- and conference of today's listening QX. ongoing you you for as activities We've We've very attended much, know, we're had lot got operator, and rest QX. halfway operations quarter. for our thank activities everyone We're to who of for

hard-working derisk our each that things we both have will excite executed assets, the think that at we're the on market and our nonproducing I to organic get and now, planning these acquisitions when assets us. both with our look of the and and we you have a number catalysts staff staff the excite profile for producing of activities

of a lot us. of portfolio part achieved that exciting and longevity. creating very gives for we've lot to decades So that's objective this our we've got And a but our of upcoming We've do. things of our company profile in got work

their everyone to to for you attendance, Thank you. and November I'd forward in So QX. talking look to like again we thank for

Operator

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

You may now disconnect your lines.

VAALCO Energy (EGY) 7 Aug 242024 Q2 Earnings call transcript