Page 19 - AfrOil Week 45

AfrOil NEWS IN BRIEF AfrOil

PERFORMANCE operational excellence and execution, which $25mn on FID from the JV partners, the Com-
continues to allow us to maintain a healthy cash pany believes the Group has sufficient funds to
VAALCO Energy announces position, and cost discipline remains a core pri- continue in operation for the foreseeable future
ority for the Company as we seek to maximise until at least FID, which is expected in 2021.
Q3-2020 results our profitability. We completed a highly suc- Corporate: Bowleven and New Age Ltd
cessful drilling programme earlier this year that have jointly appointed a lead financial adviser,
VAALCO Energy has reported operational and demonstrated the quality of the Etame asset that Cofarco, to manage raising investment finance
financial results for the third quarter of 2020. we have been operating and growing since 1995. for the Etinde development. The Etinde JV part-
Highlights and Recent Key Items: Achieved Our recent announcement that we are acquir- ners are in discussion with Société Nationale des
strong production performance of 4,405 net ing new proprietary 3-D seismic data over the Hydrocarbures (SNH) and various other com-
revenue interest (NRI) barrels per day (bpd) of entire Etame Marin block underscores the con- mercial parties with respect to the sale of gas,
crude oil, or 5,064 working interest (WI) bpd in fidence we have in the long-term potential at LPG and condensate. The Group commenced
Q3-2020, despite planned full-field maintenance Etame. We believe that we are well positioned to closing its Employee Benefit Trust during the
shutdown in September and production curtail- deliver both near-term and long-term profitable year following the cessation of the Group’s long-
ment due to an OPEC+ mandate for Gabon; growth, as we continue to execute on our strate- term incentive plan (LTIP) and employee share
Successfully resumed production following gic objectives. option schemes.
completion of the planned full field annual VAALCO Energy, November 06 2020 E&Y resigned as auditor during the year. Fol-
maintenance shutdown at Etame in September lowing a tender process, BDO was appointed
on schedule and on budget; Sold 412,000 barrels Bowleven reports on to the role of auditor in the interim and will be
of oil in Q3-2020, compared to 279,000 barrels nominated to be reappointed at the forthcoming
in Q3-2019, due to the continued strong produc- preliminary results annual general meeting (AGM).
tion performance from the successful 2019/2020 Outlook: Key objectives are to deliver on a
drilling campaign. Bowleven, the Africa-focused oil and gas explo- revised strategy in FY2021, including working
Decreased per-unit production expense, ration group traded on AIM, today announces with JV partners on FEED, Commercial and
excluding workovers, by 35% in Q3-2020 vs its preliminary unaudited results for the year Finance matters in respect of the Etinde devel-
Q3-2019 as a result of higher sales volumes ended June 30, 2020. opment options with the aim of Etinde project
and lower operating costs due to proactive cost Operational, Etinde offshore Cameroon: FID in 2021. The JV partners propose to address
reductions; Reported Q3-2020 net income of Front End Engineering Design (FEED) contract the Etinde Exclusive Exploitation Agreement
$7.6mn ($0.13 per diluted share), Adjusted awarded to Technip in Q1 2020. Commence- (EEEA) licence duration as part of the FID pro-
Net Income(3) of $2.3mn ($0.04 per diluted ment was delayed until July 1, 2020 due to the cess regulatory submission to the Government
share) and generated Adjusted EBITDAX(3) of impact of the COVID-19 pandemic. This con- of Cameroon.
$7.0mn; Maintained strong balance sheet with tract focuses on the design and engineering of The risk of the Etinde licence potentially
no debt, a cash balance of $42.0mn, including the onshore gas processing facility, the IM well expiring in January 2021 is considered low to
$6.0mn in joint venture owner advances, work- head platform and the appropriate produc- medium at the current time. Disciplined capi-
ing capital of $16.6mn and Adjusted Working tion and sales pipeline infrastructure. FEED is tal management to secure progress towards FID
Capital(3) of $29.3mn as of September 30, 2020. expected to complete in November 2020 and and thereafter explore funding options regard-
Announced acquisition of new proprietary is currently on time and within budget. Work ing development capital.
3D seismic data over the entire Etame Marin is also progressing on the sub-surface develop- Eli Chahin, Chief Executive Officer of
block, which will be used to optimise and de-risk ment plan, including location, number and type Bowleven, said: “Our focus in 2021 will be to
future drilling locations as well as identify new of wells required to produce wet gas from IM work with all of our stakeholders to ensure FID
potential locations. reservoirs. is achieved and underpinned by a compelling
Cary Bounds, VAALCO’s Chief Executive Financial: The loss for the financial year was development plan, which is suitably robust to
Officer, commented: “We continued to perform $2.6mn. Bowleven closed the year with $9.1mn secure future capex funding. This, combined
well operationally in the third quarter with net of cash and a financial investment of $2.0mn, with a disciplined approach to capital manage-
production of 4,405 bpd, despite our annual giving a total value of funds of $11.1mn. Having ment, will ensure that we are able to deliver max-
planned full field maintenance shutdown at assessed the forecast cash expenditure to Finan- imum value for the Company’s shareholders.”
Etame and production curtailment due to an cial Investment Decision (FID) and the receipt of Bowleven Oil & Gas, November 05 2020
OPEC+ mandate for Gabon. From a financial
perspective, we reported net income of $7.6mn
in the quarter, even with the impact of those
production curtailments and low oil prices,
and generated $7.0mn of Adjusted EBITDAX,
highlighting the economic robustness of the
Etame field. Our cash balance remained strong
at $42.0mn, which includes $6.0mn in joint ven-
ture owner advances. Additionally, given that the
vast majority of our operating expenses are fixed,
our higher sales volumes and proactive measures
to manage costs have helped to drive down our
unit production costs and enhanced our profit
margins year-over-year.
“We have maintained our focus on

Week 45 11•November•2020 www. NEWSBASE .com P19