HOUSTON, Feb. 4, 2014 /PRNewswire/ -- VAALCO Energy,
Inc. (NYSE: EGY) today announced that it has executed a loan
agreement with the International Finance Corporation (IFC) for a
$65 million reserve based loan
facility secured by the assets of the Company's Gabon subsidiary which owns the Company's
interest in the Etame Marin block, offshore Gabon. The loan facility will be used to
support the Company's development program in Gabon.
(Logo:
http://photos.prnewswire.com/prnh/20100316/NY71495LOGO)
Steve Guidry, CEO, commented,
"VAALCO's strong financial position is a key competitive advantage
and with this credit facility, we have significantly enhanced our
financial flexibility. With the proceeds of this facility, we
will invest in the continued development of the Etame Marin block,
including our ongoing drilling program and the two additional
production platforms scheduled for installation in 2014. We will
also now have more scope to allocate operating cash flow and the
cash we have on hand to invest in value accretive development,
exploration and acquisition opportunities."
As of the end of the third quarter of 2013, the Company had
unrestricted cash of $100.5 million
with no outstanding debt.
Forward-Looking Statements
This document includes "forward-looking statements" within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as
amended. Forward-looking statements are those concerning
VAALCO's plans, expectations, and objectives for future drilling,
completion and other operations and activities. All
statements included in this document that address activities,
events or developments that VAALCO expects, believes or anticipates
will or may occur in the future are forward-looking
statements. These statements include expected capital
expenditures, future drilling plans, prospect evaluations,
objectives and operations, and reserve growth. These
statements are based on assumptions made by VAALCO based on its
experience perception of historical trends, current conditions,
expected future developments and other factors it believes are
appropriate in the circumstances. Such statements are subject
to a number of assumptions, risks and uncertainties, many of which
are beyond VAALCO's control. These risks include, but are not
limited to, inflation, general economic conditions, oil and gas
price volatility, the Company's success in discovering, developing
and producing reserves, lack of availability of goods,
services and capital, environmental risks, drilling risks, foreign
operational risks, and regulatory changes. These and other
risks are further described in VAALCO's annual report on Form 10-K
for the year ended December 31, 2012,
its Form 10-Q for the third quarter filed on November 7, 2013, and other reports filed with
the SEC which can be reviewed at http://www.sec.gov, or which can
be received by contacting VAALCO at 4600 Post Oak Place, Suite 300,
Houston, Texas 77027, (713)
623-0801. Investors are cautioned that forward-looking
statements are not guarantees of future performance and that actual
results or developments may differ materially from those projected
in the forward-looking statements. VAALCO disclaims any
intention or obligation to update or revise any forward-looking
statements, whether as a result of new information, future events,
or otherwise.
About VAALCO
VAALCO Energy, Inc. is a Houston based independent energy company
principally engaged in the acquisition, exploration, development
and production of crude oil. VAALCO's strategy is to increase
reserves and production through the exploration and exploitation of
oil and natural gas properties with high emphasis on international
opportunities. The company's properties and exploration
acreage are located primarily in Gabon, Angola
and Equatorial Guinea in
West Africa.
SOURCE VAALCO Energy, Inc.