EGY - Earnings call transcript Q3 2024

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the VAALCO Energy's Third Quarter 2024 Conference Call. [Operator Instructions] This conference is being recorded and a replay will be made available on the Company's website following the call. I would now like to turn the conference over to Chris Delange, Investor Relations Coordinator. Please go ahead.

Chris Delange

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

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

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

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

Let me turn the George. to call over

George Maxwell

our welcome Thank quarter XXXX third you, conference and earnings Chris. to morning, Good call. everyone,

organic a our player or generation. Maintaining and will EBITDAX, essential is position For flow adjusted in production the past to and financial us enable as our adjusted income, larger the net and exceeded leading quarterly excellence including across EBITDAX, and to consistent operational us years, met fund to have strong initiatives results, production we which guidance, industry. growth consistently portfolio expanding operational X cash

guidance. acquisition, occurred fully high quarterly end a at the to Svenska of April. quarter, the or line in with at deliver which above incorporated executing experienced results continue and that results In level our third are We we the

X shareholders XXXX cash efficiently increased assets, our net our We year-end For in delivered months on million of QX, $XXX of to adjusted million surpassing oil. we high-quality returning $XX.X EBITDAX of commitment XXXX, in EBITDAX. with to first third-party have to with valuable a adjusted the beginning our Svenska SEC XXXX the sustained our reserves asset a as highly through have d'Ivoire. XX.X attractive completed at and of now for go all acquisition regular give results on our to and and swiftly Cote of million through the of expectations, our We would a price. Based through of securing QX. I the QX quarterly XX% with our have also proved like dividend quick newest and asset announced portfolio in XXXX diverse update engineers, April reserves barrels being we reserves equivalent oil initial dividend

shutdown XX% more Our the acquisition had interest previous million associated we in sales we move as overall The for liftings purchase. In firm barrels VAALCO FPSO these Cote away in of reserves versus improves CPR justifies and the were total with increase to reserves with QX, shared sail targeted the driving metrics becoming higher scheduled This equivalent. the now X QX. further of QX our shutdown XP d'Ivoire, closer plans the date. in timing remains XX% XX working oil

QX. we'll Cote additional FPSO provide are Baobab on with guidance when in our we operator the drilling and future our d'Ivoire, We issue XXXX and information collaborating at project plans

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

the to laterals laterals. X reminder, improve we program the all of a X.XX-mile economics and wells As longer drilled are

in mix our can online you the GOR. very was QX, wells our with XX% about drilling the our pleased Canadian of see production Canada production program, as from new a production liquids, and in strong and Canadian and with approximately our overall XX% performance liquids to in QX, QX lower are Canada. In that production results from in the This We production which strong has liquids contributes profitability. more and was favor coming rebalanced oil production production in

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

lateral acreage, As for we have with subsurface information, XXXX prior In well, proved add in an are exploration southern has quarter, our hope also drilling if to and the up rate high long in additional successful, return I could on the future well in to as currently locations. In projects the appraisal results to which minimal we last last help this call, year-end. mentioned Egypt, we exploration horizontal we focus been acreage, have our undeveloped of wells in workover to capital decline. mitigate prove the potential disclosed southern

X in recompletions As third you in had the we quarter. the earnings have seen release,

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

We have hours This our million a commitment of people the operation. in a to this training, time incident testament of is X.X to year. without all gone our safety, over man lost and dedication

least wells As at will I have a we the this mentioned XX-well of in the program. year. And commence we the have and contracted these in last fourth X to XX call, quarter, rig

a least the year-end to complete at prior the and of complete expect drilling drill single to and second well We well.

second not January well XXXX. expected provide until However, to production is the

engage and backdated the receivables EGPC issue. on to the continue with Ministry We

the between necessary with We a backdated a position indications of are the program our working drilling to from EGPC balancing limited capital position. but program address

impact South our of in available in one fourth encouraging, be Western late will positive fracture Results development Ghazwa our if QX this for and XXXX, will have on and to in a plan wells the quarter. the the Desert future. in opportunities also We area

Moving to Gabon.

and wells. drilled the is The the haven't to capture us initiating on not strong the overall responded with in field that year, FSO quality minimize the production has production positive improved Etame a remains to and decline of a drilling the projects pleased have the reduce for the well Given our testament XXXX how efficiency, XXXX, guidance overall despite we production a reservoir results OpEx. Currently, are year, in and field positively allowed to Gabon reconfiguration downtime, and over the firm we curves for with planned uptime in reconfiguration. which

Looking announce ahead future. the evaluation is contractor to we XXXX, It on as I process in drilling and almost We're for quarter, XXXX the of complete evaluation stated last very initiated that selection. this bidding intended will results a program. near the bid we

However, for on the have Ebouri testing mid-XXXX. Since communication, equipment will greater we provide of our and program I the for the last remains and sequencing finalized, wells the sequence. within analysis the of project timing wells. this Ebouri When the can selection to schedule review the wells the shut-in of the confirm that of the required well timing program this for continued

wells well a exploration wells, in an SEENT, within the planned remain infill small addition at Etame, and other Etame. workover in X a plan. in potential well is the program of This gas The to

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

long million million. expected noted, Our lead spend on CapEx between for $XX items remains and $XX previously as XXXX

also the provisional renamed government exploration blocks, XX% Niosi of Regarding for granting follows a Gabon as and holding a announced technical Panoro a they as be these VAALCO award Marin. working working XX.X% interest PSCs This interest. Energy owner blocks in October to XX.X% requested XXXX, with Marin nonoperating which recently, signed a working with interest, nonoperating joint Guduma and BW operator, G&H the Energy

in plan with partners Given the are the proximity related XXXX, the engineering March completion or of of our will excited fields study. of begin development. will summer, these the to lead the FEED prolific Guinea anticipate an these final which documents of the decision and This We to to began or Dussafu, the producing working Venus our Block the Venus. enable the P for examining front-end we development to blocks possibilities to announced economic FEED of of finalization Equatorial we Etame FID, investment blocks. In begin design we study

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

reserves significantly debt-free the adjusted and flow return to our X position. have enhancing capital shareholders, grow a generate operational we while capacity to our years, maintaining diversified our Over past cash EBITDAX, bank cash portfolio,

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

Ronald Bain

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

success by acquisition, than by which generated positive strong first we Through X continued Let share adjusted have in me net the [ $XXX is per generated XXXX, the months million now quarter ] our EBITDAX. XXXX, third including from of in million $XX George's income in d'Ivoire. impact shade through we third generated $XX in of X our the comments the We the million of in X XXXX. the $XX.X over adjusted about performance. In $X.XX Svenska driven begin quarters EBITDAX, echoing more or and operational quarter, we first liftings Cote saw million

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

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

in the disclosed were positions earnings release. hedge current Our

Turning to costs.

third of Our $XX.XX. d'Ivoire adjustment production low in guidance, that by the on $XX.X at per to million the barrel an both remind Absolute was to included on that absolute was XX% I the end was the purchase a want per XXXX noncash $XX costs a for price were purchased. quarter a and barrel expense basis basis. on decrease of driven the million QX fact that was you QX compared inventory Cote for basis,

a efficiently capturing fell us process and with remains to and our and increased proven, around the low and project than was expense quarter-over-quarter. an report. world. went occurring with in the Cote to on is to developed, assumed were our back-office QX they also ERP cash reserve flow. G&A company is is whole across DD&A the of CPR, of liftings Cote our dedication effort and due streamline on time synergies Our and depletion Valuation The increased cloud-based costs in increase to with on the single in a enable project reserves, XXXX and forecast testament margins thereby the producing geographies estimated the costs of costs in and allow team. Non-cash This completed which d'Ivoire. accelerated to budget across XXXX. of disconnection in live our primarily completed processes maximize comprised multiple to keeping us located the associated the the line costs primarily the should We entire depletion higher and work on schedule addition QX improvement quarter-over-quarter, d'Ivoire focus implementation due guidance,

payment will as barrels calendar entitled GOC in oil our taking that lift government forecast list the XXXX, kind. foreign early by government QX In for taxes. are we I've QX, Gabon, taxes in-kind their be further Moving through We foreign liftings. through barrels our year. Gabon to million and in no in income state will in $XX.X previously And accrued settled as the this oil taxes there Gabon stated, income

of Third quarter value to tax end. quarter the tax market barrels such change at transaction Gabon state by million $XX.X an higher costs rate Tax prior was XX% in in resulted is the costs about about impacted nonrecurring of by quarters, effective the of as than QX. by the tax mark-to-market due Svenska items. items quarter in discrete nondeductible offset rate but in second in effective This quarter, and the impacted XX%

can see, guided to effective of is items, our the range forecast. excluding a you XX% discrete As XX% over long-term, good tax

to noise shareholders. CapEx million Turning sheet $XX.X to in returned dividends in balance we statement. there cash regarding million, Svenska In now and of sales. statement at QX, acquisition. I'd out our third like the $X.X flow cash through some quarter is grew the million point strong that the spent cash to the Unrestricted $XX.X and flow end driven to cash by the

showing have We the to help waterfall explain the a deck slide to supplemental a movements. in

million investing of our will the receivables higher. capital several books in had working that that, in third million combination. the X the assumed liabilities all cash of seller received July, in which likely primarily that business XXXX, we pounds the be million the payment Egyptian that Egyptian Egyptian in and we Egypt. million was movements, also call, versus to the activities, $XX.X preceding to VAALCO on related This months. early August quarter drove we purchase. Last of see received. Further whole sold accounts with In received you activities discussed accrued USD the was operating September production cash domestically, flowed to On section through in equivalent an September $X cash In worth in $XX.X receivable Svenska

utilize amounted and quarter. million for to $XX the continue payments approximately to the offsets offsets We collectively, the plus

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

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

fourth be dividend We of the the which December. also year, announced in payment paid will

Let me updates. highlights some now will turn you to and guidance, key where give I

on interest breakout full slide release earnings and production Our our supplemental the breakout is website of area. in asset guidance working revenue both net and in the deck by our interest with

per oil due down the only quarter XX,XXX decline. oil slightly For the to equivalent company, per total barrels compared of and between This day. interest QX XX,XXX equivalent forecasting NRI working to natural we and production third of to are XXXX day between XX,XXX be XX,XXX barrels and is

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

May in we production decline we from mitigate Looking growth drilling Egypt in we numbers. d'Ivoire, our the are are year asset program decline. In capital to our and natural operations December full some workover year, Gabon Egypt, campaign are by expecting year-over-year for although through and in full at from reflecting helped the Cote Canada, has seeing

be QX with to less due we down line in are less liftings. our our For sales to but quarter, or the compared offshore more production, will forecasting fourth

to operating slightly range to slightly liftings, per barrel expecting $XX.XX expect equivalent $XX.XX absolute our barrel be our between QX. But We projecting are because only we're compared equivalent. higher costs oil to fewer a per range with we increase and of oil of

G&A. absolute slightly flat to expecting We are also lower

Finally, is some FPSO Egypt and million Gabon QX the change Cote XXXX looking million we as could prepare for campaign in $XXX at the production. in between drilling CapEx, capital our drilling Canada impact spend that next $XXX and anticipated XXXX out in and XXXX d'Ivoire,

and are quarter, well the CapEx, the southern our marine contracts. In of for For million a strategy million which our of we and executing our drilled in range and $XX fourth FPSO adding we are fifth value. includes disconnection expecting between Canadian a $XX acreage long item lead asset closing, meaningful and

increased meaningful a which to additional With and sales, acquisition, in generate has the increase ability we've adjusted cash and also Svenska EBITDAX delivered operational our flow. production

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

George Maxwell

Thanks, Ron.

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

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

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

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

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

are We in the campaign refurbishment Etame, in at program on d'Ivoire the the XXXX XXXX. Cote and working operator drilling development drilling with and planning FPSO

We project production in in the capital are and expense study drilling Egypt. optimizing while executing FEED Guinea Equatorial and progressing a

with even with the an debt producing of deliver have next assets future few an will position bank of enviable the slate with and upside over years. We're gained is portfolio continue results. credibility working growth our deliver to and and market organization the I believe to commitments sustainable and to the on our actively shareholders, having over X years exciting no entire stronger in we we Our strong we to projects, financial past have delivered potential.

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

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

We and projects quarter finalize and will report and future now for guidance timing prospects our areas risk and the XXXX has income. about future VAALCO and first sources of XXXX. diversified We're continue of profile have the to expectations excited truly in producing multiple our that and our

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

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

Operator

Instructions] [Operator question Robertson And Tower our Water will first come with here Jeff Research. from

Jeffrey Robertson

you X.X the George, do your years been, well -- in guess, production last see in going a decline where natural completion? couple since it's Gabon, XXXX I since

George Maxwell

pressure the as preventative for again, reservoir is think as down field, planned of couple reconfiguration, seen we've a improved position. and Jeff. you seen a pointed in reconfiguration, out reduced downtime earlier mean call X% on for we've from I of in actually performance terrific today, hugely reduced reservoir I One second, the for Thank a the reasons. obviously we the performance result decline that in reduction big with the And to some back improvements considerably and seen that, we've the we've maintenance. reason

for to think drilling I the decline of the we're and what the availability. look performance reservoir have XXXX, due would X% around the So earliest the that's be we'll into the QX, that in do or ahead between when mentioned, I That's encouraging. us. maintenance hitting still some probably about particularly the and do June from to 'XX, I rig due May still start which X%. planned But as we seeing mainly available of campaign. we're campaign rig is see We

Jeffrey Robertson

from pressure reducing Does you and the that reserves have there? book gained the an -- how will performance impact on back

George Maxwell

particularly I'm XXXX, the we considering with That's having the underestimating at Or of Actually, are on underestimating XXXX something size week. we're we of tank? the meeting that next the recovery something look through looking and we the are at. reservoir, a performance are factor. That's to

be have completed issued work that's we CPR for in So in of piece the that January. will time report a will

Jeffrey Robertson

squeeze then more I in. And one if can

drilling would the you second anticipate the weighted the on Lastly, the how having wells, sometime from XXXX in quarter, in XXXX? start campaign, more based the or to on half back you you in that program sequence contribution be would if I of -- some production late it guess,

George Maxwell

we're wells. we right we're starting We'll having key the whether Etame Ebouri the that's can of campaign. start And of on no. with production The now side start campaign the No, definitely the the Etame. whether debate side on is sidetrack the and in around for to evaluation, down of XH continued we in for step -- materials what need really the HXS and types order wells the Ebouri testing those sorry, infill concentration completions particularly also or and

comes think infill good all we're time. The it will ready day on be to kit on go when to I Now those the long. Etame wells,

So a and do between at sequence. it's just question of wells how want the infill wells rehabilitate, will restart at moves program the production the definitely be But front take opportunity the to we between it to the Brewery. really rig Etame many into the

Operator

And our with Wheaton next come will Chris from Stifel. question

Christopher Wheaton

Question, both your then an year. to ongoing drilling what sometime be George, be recent from be campaign, is it that's likely on FPSO And good hopefully first around When website, a bit on spend expect returns do see doing which it's the we going whenever and going presentation the I restart XQ Cote to d'Ivoire. that. looks going think money, is spending which like on can timing little more happened, to generating you obviously, clarity you to next

likely reported when calendar wonder that in that when could swing you talk about the because be to your performance timing to seems probably terms 'XX? sort of in factors we're the I of likely biggest So get

George Maxwell

I away the time already in FPSO. we've confirmed don't change think any no. that sail I see we for and mean, Yes the

this the basis what disconnection the and at also So 'XX away it When the is QX speak. fair but go capital to are operator come around contracts for being relates spend some year, probably and FPSO. or we've dry reconfiguration, the more to happen with with only of dock The discussions the sail contracting still look that to through we seen it disconnection 'XX not that 'XX, all the as that is confirmed in date you've campaign. MVXX relates and drilling will we the placed to the

we to right So position that the I One and we total more we next right the market, great time be internal this have which d'Ivoire. overall at say to that a we've get with and project now. When Gabon detailed to we're in Cote already confidence costings. would and and now Obviously, right costings year breakdown of be spending carry year includes the now. early to degree late than look able project thing CapEx to on to project give indicated a lines, a or already expect with time lines are to funded I'll the Egypt everyone out is campaigns adequately

So to there's no all issue It's around fund the timing. being able about campaigns. these

not those certainly from as But soon those, have around schedules be estimates deviate confirmed no next QX project timing as expect carrying, operator. the We But it make yet as we haven't currently we later that. than early we're the we to do certainly announcement will will and an and had year. from significantly

Christopher Wheaton

if Ron, for I questions may. Two

in you back unusual, million -- capital of build, had still Firstly, so depreciation. working receivables And cash d'Ivoire your that's if year. quarter Interestingly, been the outflow, that's generation drag even sign been a reversing quite is Because working this this far obviously, a seen which has flow $XX quite every quarter. free Is out capital. then this question Cote year XQ? working there you a on capital on outflow

commentary unit average. Forgive And d'Ivoire sequentially. thought would on your I higher me, the understand because but d'Ivoire didn't unit I gave DD&A is have than was Cote lower lower Cote if up more unit therefore, got should quite DD&A answer have DD&A, you the you the you've DD&A or barrels,

trying me. So that wrong I'm Could was -- perhaps there? of logical didn't you to I going to sort explain why seem

Ronald Bain

No problem, Chris.

handle Let me that.

right got in all, CDI was that think -- you've which working what removing of early in I receivable, First you're October. capital, the paid on

During the a things. been year, number there's of

obviously, CapEx campaign quarter. out into of really they year. our up reduced the accruals then, had have that, campaigns. got will has again in you Since That and go As in receivables. we trended and XXXX we've first the know, we've drilling campaign next we X-well this been the our AP the Canada, ramp up Outside when of reduction our considerably,

It's tank think oil $XX differentiation in Coast quarter, we're using more since a as $X pricing December. collecting we've year-to-date, bit little million up we're X Ivory at about between trending and too, with the we're million/$X coming and/or million I about what in well. FPSOs what selling with offsets. Obviously, got per present the as

in So our We talked inventory payment in pricing which DMO And had CDI is higher. against were QX. is recoverable. Gabon, a we the have events then one-off in you discount annual QX, some little bit cost that in about. We'll our DMO

these have too. do swing things events one-off do So that you

got we you number that, of than post chart to were a we Chris. did flow, with and cash as settle that talk Svenska too. liabilities waterfall noise cash more It we our seller-led strange, the about settled well will business, look nothing the had working So in capital that the does we with but year-end liabilities note and that

are those driving the working outflows those quarters. So of factors capital all in of each

Moving on to simple, DD&A. Chris, one. this quite It's on

the the acquisition, the producing Although through was proven words, And actually only producing -- in some $XX valued we XXXX. paid when is the put those which proportion obviously goes together that proven other it, million into we the around barrel station, obviously, we happens, price developed disconnect targeted valuation lower predominant going a until are in reserves developed operating large for reserves. Ivory that that off per proportion the cost of QX for When when areas. it Coast comes purchase

you've through So a depreciated portion that got of valuation situation, until and you've got being January effectively large amortized where XXXX. the

through we will exacerbated made CDI. in go why amortized by our QX, there X component the gone think QX have the essentially, of that's year. in most because I be truth up of QX we Now fact listed and on X end do as PDP the is a for the we as PDP we'll the versus before into that XXXX DD&A and high listings have But so go

Christopher Wheaton

using That helpful, Ron, very that equation. because last not unit in answer reserves, the DD&A was reserves XP as I is the PDP denominator

why So that don't numbers matter. those explains

Operator

will from Canaccord. question next our come with Charlie Sharp And

Charlie Sharp

that return, has And I bit. really program. a mid-QX. of I wanted to indicated start slid to little Gabon if may think drilling It sort may, the and Just you that

up I of wells what in final to on would of And aren't rigs those each that I rates? wells. is some was then figure new related. locally are you of will How chase And whether wells us indicated or that think available the think is the of also rig cost just rig bit many program, the that just wanted drilling of you've to is you workover that that ballpark sort can that that of give be actual because the there I indicated X-well X-well drill? pressure program?

George Maxwell

Okay.

take me Let each section.

certain with -- has had one versus the of of location wells when It all that do it's to of then obviously, So Africa. unit Africa, West there -- we other being rig X Taking at the it's into executing pressure When a no in come got around program already was we out to over the then we versus will part lowest sorry, a it's -- in in with bareboat out, it we that, in to are a company mixture currently mobilization were completes put X rates. February, opportunity. And the put tenders another somewhere account, bid. is and there's us. negotiations the looking West issue that unit geographic no tenders mobilization we the or rate that And around LOIs bidders.

kind et cetera, as rates, a So purely one is pressure hot in and to on rig and opposed working any it's used the of is of economics past. we've that economics stacked, one expediency not and it's

opportunities, infill looking look But the at down our program program, the is already we're other detail has on of lot looking and pilots it's that targets. any the the -- doing to to to rig at we're a on it. will the opposed external that really So into I timing be of schedule we side to the is nearer went either when haven't drilling we at committed itself, as that factor. When

wells. So the both pilots the -- successful be number with X of are wells could

So slot got on Ebouri, in of other which be we and coming redrill the to Etame. X-H, one locations. Ebouri could a Ebouri a that, X up X We've or X-H in workover on into Ebouri, redirection will a wells dependent a of have new redrill

given of exploration workover wells. obviously, is the would exclude got gas there fuel So well, and a prospect ESPs necessary got The the are the an out X least and of we've some over gas, exploration if The X wells performance firm, gas elect we've take as I'll those for well of position wells. new and well, at the well. are choose feel to optional the out if opportunities we we on number them of the of

in really that's contingent. what we've kept So

Charlie Sharp

And can a or us wells, per the well? you give the ballpark for of program sort figure

George Maxwell

D&C probably for to well, redrill. million million be million. going be to be going probably about I'm $XX down as to about can. as I less -- about I'm we're on new million exploration going on well. on the $XX for $XX And a a that $X to really The low

Charlie Sharp

And the then Gabon, on have you've I'm you That an easy In like one, those awarded you. finally, to completed doesn't say new documentation. sure. quite the sound very licenses licenses, been

George Maxwell

discussing Cape week. have paper, put formally all that Cape with been last Town he licenses was in to actually [ awarded to announced -- it I I signed Minister but to All week, pen sorry, Town had have ], licenses been Gabon, of was us with Gabon discussing that last we have parties still us. administrative to the in have the not issue in minister. enforcer We an the awarded These in

put So whatsoever, basically issue. is paper, worded of to that's a on we no it's an it. administrative signature just we over have There the why just a piece we've worded question the way it license but

Operator

And from our next come Advisors. Foucaud question Stephane will with Auctus

Stephane Guy Foucaud

is The first Canada. around one

you That's exploration QX well? in on question. is I talk So XXXX? the Canada exploration my results like. do about But upcoming be the of didn't interesting there dependent what side. in much And in on very to plan first 'XX that think drilled look might this be well the would to Do much you

George Maxwell

Okay.

tend Yes, us GOR we keep of We ensure plan number is and probably the for guidance sense for to liquids drill The quite yet. first position 'XX question that Canada ratio haven't -- we in to that we gas. in a easy. a given makes wells between

come the currently we've will, the we're whether of right we in think north. areas south I of next Canada further results will is We now, got be the prospectivity continue that we the drilling in here whether will this or well drill in to key based year. The enhancing on that issue

up. we've got And I've got plan Now X-year excellent team Canada. the I think from an areas we've in said worked before,

to comes possible. will know sure So to the wells change slight cause successfully in the the sequencing drilling to as to we're we where that, high may make that in the next we keep that would where exploration liquid But south, if year. as the drill we saying as well expected, that in we target and ratio as well a exactly for like

Stephane Guy Foucaud

a expect than in Would So year. reasonable? program this capital that we maybe similar something be should Canada for

George Maxwell

GOR or thereabouts. Canada. obviously, to But can't yet, too Stephane, I there in allow those can position giving the that we're not the mean, we see we I go due positions. position Yes, mean, guidance haven't high in locked Yes. gas to anyone because

we So keep investing those ratios liquid to have keep to up.

Stephane Guy Foucaud

Ron. And probably my second one, for

got good to to up I very the was Page been QX, I when trying the -- the has asset, was day? across individual And X, a Slide I assets. is the XX,XXX on production production good. think of production lower What's reconcile each got and per I for you've XX,XXX. ] add headline the the sort XX,XXX X number, the in slightly [ QX where difference of But So so of BOE see production the the between which production X sorry, of

George Maxwell

difficult were you out bit, point highlighting? Stephan, sorry, it cutting which to pages, little and could a you. finding you to You're a I'm me hear little But if bit in

Stephane Guy Foucaud

Yes.

hear me you Can Sorry. now?

George Maxwell

Yes, I can.

Stephane Guy Foucaud

Okay.

So it's I it's asset day. Slide be looking different was And XX,XXX suggest X, each the very in think would if could production. figure, what good headline individually, has number confirm a for Canada, the on at I And was production X. you it a slightly which I wondering the great. is difference? which a that got I Slide when is been would was XX,XXX

George Maxwell

themselves Yes. me. be team And or averages our numbers back probably for those at in coming the is are interest by I divided it QX. slide these yes, X most in total individual areas through -- guess to XX the averages average But production on view presented obviously, could of there. just I XX from anything, a who it versus working individual think then I X my have if because would and point look that effectively days was

Operator

from Bill Tieton will Capital. Our question next with come Dezellem

William Dezellem

I'd start days by I up was a adjusts than us production like assume Cote d'Ivoire. it's greater since The with a a calculation daily for was to could number in XX%. basis And on because that hoping that that I understand on basis. help daily you QX QX of

George Maxwell

Baobab, been and -- seen forecast, down against has our one the P-XX well. the -- field the has certainly performing take come I the d'Ivoire well. Recently, Yes. Cote we've production in well, wells mean of very

closer position our think, strong will we position. And But basically, think we've in see that QX. very So to reflects I forecast performance. guidance seen I a a

the But higher we've the the forecast a also performing seen had rate, got run only increase higher X/X not QX, was operator. got there's that of than the recently we've end we see been That's QX. towards of we've So at primarily original we well. some the because to from full our started QX P-XX issues versus the -- it And until around what's happening. well

Ronald Bain

is through Bill. were the I on we right QX the I'll jump midpoint. just Yes. forecast And X,XXX mean October, for in there, mean I to X,XXX.

William Dezellem

that production in addresses in feel increase versus the QX don't totally the like daily I QX. significant But

George Maxwell

shed Yes, date I months X QX only has X closing the because can in months. some has of it probably QX that. light on versus

William Dezellem

I the daily that What the production. looking was Does daily total at, change as opposed take into account? to the production though, was production

George Maxwell

about Let me think that.

Ronald Bain

divided total of by the days. It's production number

George Maxwell

the It's total divided number days number Yes. by the in quarter. of your

would So be it XX%.

Ronald Bain

May, the than day, more you time. we got at combined though days in QX, days at the production for of of the so happened you've it XX the mean, because on QX, Xst what I same even in is have end from had Bill, of the And got Xst you've then of worth we count got would days, CDI XX April. in obviously, came

William Dezellem

nice offline, activity I'll take that looks there. like one but it certainly

BW X the for relationship you for to What me blocks shift and fields. have those begin before that drilling production? the Let line Energy is time

George Maxwell

blocks. exploration These X are

we main down is that drilling reason between G&H because the And -- we where down the BWE basically on with been whole Now we the production and into for partnership in the us, are went partners a Etame flow we of from are Etame area Panoro into run Dussafu. in blocks Dussafu. in fairway where and and in produce X play they've

but one -- around particularly to well, program block. and the XXXX, a that seismic we anticipate G, us. the we nearest XXXX, we signature we QX, in Block And pay once once sign the well be acquisition, then in which haven't will will bonus. -- yet, committed So seen is into the sometime being we be anticipate In the program would

X from It's is infrastructure. things. on any to production its dependent Now on well proximity successful dependent

tying it is how is close close to how Etame to Dussafu So versus and back. it then it obviously

se, we're availability, drilling late production in by per wouldn't rig from back equipment the the place you in and seeing until tie that So we put time any to XXXX 'XX it assuming be infrastructure.

William Dezellem

as account going come transfer it happen? over happen that What's do that are does still squeak which are you you'll to to that if expectation, more that your And going time? of think expect forward? does your unfolds I I'm try $XX $XX Egypt, million The roughly or payments, you from and million to it. into one owed in one when allow how piecemeal

George Maxwell

basis been We're trade monthly because a or it pushing -- for it's promised recognized time. we settlement separate highlighting offsets finally our we're got to where from looking a point this. and acknowledged as when we've for government. not a some on the to our keeping receivables we're do this it Well, for with by it We comes the not discussions for keep trade settled looking it AR. it to as so We're

for country new this how discussions, as has we've item. and whether there now looking to And extraordinary manager a treat discussions -- an to in we're that, get deal So been this. our on separate and been try having we having

in Our will we anticipation is payment certainly be U.S. a single looking position. this for to back settle to that dollars

including Ras Egypt, government and on and to that progress South QX the in commenced always On where this doesn't activity, the Ghazwa. the backdated and the latest but with the discussions the have at that, be see or trade We're around. are any stood of in be but discussions looking keep we up suffer sure certainly pursuing the because our ongoing. been discussions investment full My trade we the into AR would agreements having our in month, made movement that we'll making payment And we'll that's at we've your preference some single starting the name settlement. both we Gara way account, the time, VAALCO recognition basis drilling and again significant of last through rig the a same be compromised to that

Operator

here, one with Water time Research. take have follow-up from we more for Jeff will Robertson a question Tower We and

Jeffrey Robertson

rig stages for of in are a that seeking development d'Ivoire, you George, with you campaign planned for and are drilling in yet next the together? Cote putting it actively early year still into or XXXX, all

George Maxwell

operator. they in are are actively rig, and us I That's they believe QX. a believe that with ready seeking I early to the talk to about

Operator

concludes our turn like George remarks. to question-and-answer to for any this closing And Maxwell back conference I'd over session. the

George Maxwell

much, you Thank operator. very

XX et like production, something meeting now we're guidance cetera. think I quarters for

a When X a portfolio d'Ivoire stable the push and have as plans production the about that opportunity and make than to it's the to is a We're the now and to we number its we where commitments opportunities. that for platforms the Equatorial very a diversification got for we of the talked we Cote look phase for continues production Egypt we also such more the plans years, for company forward, and opportunity in our double strength for Gabon, company the base Guinea, base at exciting I the then and plans entering with prospect we production such think and company briefly next market. across the key derisk us. drilling to of a of over the performance see both up add move investable and

times makes forward time to to to them and today, like for flows, for think and And can we've everyone able you their listening make I stable be cash talking time maintain QX. and exciting the worked but to and the very not business, future. effort that also increase next got thank us those VAALCO see our So only hard it team again in for very opportunities the very the sure few I that to in base diligently to a to maintain look and production into years. I'd create to the early you

VAALCO Energy (EGY) 12 Nov 242024 Q3 Earnings call transcript