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CALGARY, ALBERTA--(Marketwired - May 10, 2017) - United Hydrocarbon International Corp. (the "Company" or "United") is pleased to announce that it has entered into an agreement (the "Agreement") with Delonex Energy Ltd. ("Delonex") for Delonex to acquire the Company's wholly-owned subsidiary, United Hydrocarbon Chad Ltd. ("UHCL"). UHCL holds United's Production Sharing Contract ("PSC") in the Republic of Chad ("Chad"). This transaction ensures UHCL's long-term commitment to Chad and maintains United's exposure to future project successes. Under the terms of the Agreement, Delonex will commit to a comprehensive exploration program with a minimum spend of US$65 million in the PSC in Chad. This will include 2D and 3D seismic programs and three exploration wells which represents a significant increase in activity compared to UHCL's current obligations. The Agreement is based on the acquisition of UHCL by Delonex in exchange for a cash consideration of US$35 million. United will retain a continuing economic interest in the Chad PSC and benefit from future commercial success in both the Doba basin and the Lake Chad Block H through deferred consideration to be paid at agreed milestones. The Agreement is a very positive development for United and Delonex but more importantly for the Government and people of the Republic of Chad ("Chad"). The transaction will catalyse rapid exploration and development of Chad's hydrocarbon resources across the PSC including in Block H where there has been virtually no activity since the mid-70s. United's President and Chief Executive Officer, Gabriel Ollivier, commented: "The transaction is transformational for Chad in that our Agreement requires an active exploration program to be initiated immediately upon approval. With industry-leading and proven project execution skills, access to advanced technologies and financial strength, Delonex is the right partner for United and for the Government of Chad as we seek to increase oil production, boost export capabilities and create value for Chad and for United's shareholders." Mr. Ollivier further added: "Following threshold exploration success, UHCL will under Delonex ownership have the experience, and financial backing to fast-track the appropriate crude export infrastructure for Termit basin production to global markets. This Agreement retains significant valuation creation potential for United shareholders through continued exposure to the PSC. In Doba, UHCL will continue to rapidly evaluate the production potential of the discoveries made to date and the prospects for further exploration. An immediate exploration program will also commence in Block H located in the Lake Chad and Kanem region where little exploration has taken place in recent years. We look forward to continuing to work closely with the Government of Chad, its associated agencies and with Delonex to conclude this transaction and start the exploration program by the third quarter of this year." Mr. Rahul Dhir, Chief Executive Officer of Delonex, said: "This Agreement represents an important strategic step for Delonex. We are very pleased to partner with United on their blocks in the Doba and Termit basins. United has a very strong position in Chad and over the past five years has invested significantly in exploration in their PSC. We are committed to a fast-track exploration and appraisal program in these blocks to target early production and benefit for all stakeholders. With the support of our investors Warburg Pincus and the International Finance Corporation (IFC), we look forward to working closely with the Government of Chad and the local communities to further develop United's onshore interests in Chad and deliver value for the nation." The transaction is subject to a number of conditions including approval from the Government of Chad and United shareholder consent. United's Information Circular will contain further transaction details and will be mailed out by late May 2017, and a special meeting of the United shareholders to approve the Agreement is anticipated to be held by June 30, 2017. GMP FirstEnergy acted as financial advisor to United. Delonex is a Sub-Saharan oil and gas company focused on exploration, development and production. Delonex is currently active in Ethiopia, Kenya and Mozambique and the proposed transaction in Chad is part of the company's strategy for expanding its portfolio in Central & West Africa. Delonex Energy is led by a management team with a proven track record in discovering, developing and operating world-class, onshore basins and building and operating pipeline infrastructure. Their core leadership team previously worked together at Cairn India, where they established a recoverable resource base of 1.2 billion barrels of oil onshore in Rajasthan, India, with plateau production of c. 200,000 barrels of oil per day. They also managed the successful financing and execution of integrated upstream and midstream development projects with a combined capital spend of over US$4 billion. The projects included development wells, processing facilities and the world's longest (c.700 km) continuously heated and insulated oil pipeline with an export terminal. Delonex is backed by a group of global investors with extensive oil & gas experience, led by global private equity firm Warburg Pincus and the International Finance Corporation (a part of the World Bank group). For further information on Delonex Energy Ltd. view Delonex Energy's website: www.delonexenergy.com. United is a private junior exploration company with all of its assets located in Chad, comprised of four land blocks which are contained in one Production Sharing Contract. United's recent efforts have been dedicated to providing clear and informative scientific data to the world's oil industry participants to express Chad's immense potential with the objective of securing a partner(s) to convert the company's sizeable resource potential into reserves, production and cash flow. United is very proud of its partnership with both the government of Chad and now with Delonex and is similarly dedicated to creating value in Chad for all stakeholders. For further information on United, view United's website at: www.unitedhydrocarbon.com. This press release contains forward-looking statements. More particularly, this press release contains statements concerning the terms of the Agreement, the timing and completion of the Agreement, the timing of the special meeting of United shareholders and anticipated benefits of the Agreement to United shareholders and other stakeholders. The forward-looking statements in this press release are based on certain key expectations and assumptions made by United and Delonex, including expectations and assumptions concerning the prevailing market conditions, the actions and decisions by the Ministry of Petroleum and Energy in Chad, other decisions and approvals of the Chad government, commodity prices and the availability of capital. Although United and Delonex believe that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because United and Delonex can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, risks associated with adverse market conditions, the inability of United or Delonex to complete the Arrangement at all or on the terms announced, not obtaining the required court, shareholder, government, and regulatory approvals, and the risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserves estimates; the uncertainty of estimates and projections relating to production, costs and expenses; and health, safety and environmental risks), uncertainty as to the availability of labour and services, commodity price and exchange rate fluctuations, unexpected adverse weather conditions, general business, economic, competitive, political and social uncertainties, capital market conditions and market prices for securities and changes to existing laws and regulations. More information about certain of these risks are set out in the documents and will be covered in the United's Information Circular regarding the Delonex Agreement. Forward-looking statements are based on estimates and opinions of management of United and Delonex at the time the statements are presented. United and Delonex may, as considered necessary in the circumstances, update or revise such forward-looking statements, whether as a result of new information, future events or otherwise, but United and Delonex undertake no obligation to update or revise any forward-looking statements, except as required by applicable securities laws.


Durant la conférence, M. Gude a déclaré: "La demande pour un meilleur accès au haut débit continue de s'accélérer rapidement. À l'heure où le monde devient plus mobile, l'internet est de plus en plus dépendant de l'accès sans fil. Nous avançons vers des réseaux de prochaine génération qui répondront à la demande d'une société connectée en permanence, et nous devons faire face au fait que quatre milliards de nos concitoyens sur terre n'ont pas accès à une vraie connectivité. Ils sont des laissés-pour-compte, alors qu'une minorité bénéficie des derniers progrès. L'accès au spectre fait partie de la solution à ces deux problèmes, auxquels sont confrontés les régulateurs et la société." Avant le déjeuner, les leaders de la communauté financière, les officiels et les opérateurs commerciaux se sont réunis en un panel, animé par M. Frank McCosker, directeur général d'Affordable Access Microsoft 4Afrika Initiatives et intitulé "Closing the Digital Divide: Addressing financial challenges to facilitate economic growth". Les participants comptaient parmi des représentants d'International Finance Corporation, Overseas Private Investment Corporation (OPIC), Prescient, Universal Service and Access Agency of South Africa (USAASA), Project Isizwe et Zenzeleni Networks. Le panel s'est arrêté sur des études de cas relatives aux modes de financement des nouveaux écosystèmes de connectivité mondiale basés sur des approches de spectre innovantes. La DSA a également tenu hier son atelier consacré aux régulateurs, qui a rassemblé des régulateurs et des officiels d'Afrique, Europe, Amérique latine, Amérique du Nord et Asie pour aborder la question du partage de spectre et l'accès au spectre dynamique à l'échelle internationale. La DSA a également accueilli deux nouveaux membres cette semaine: ViaSat, un leader mondial des services et technologies haut débit, et Brightwave, une société de réseaux et de services de télécommunications et de haut débit. Brightwave a mis au point un important réseau fibre et wifi de dernier kilomètre à Johannesburg afin de fournir un accès haut débit abordable pour une majorité d'habitants. Pour plus d'informations sur la Dynamic Spectrum Alliance et le Global Summit 2017, veuillez visiter www.dynamicspectrumalliance.org/ ou suivez @dynamicspectrum et #DSA17GS sur Twitter. Vous pouvez également rejoindre l'Alliance sur Facebook ou LinkedIn. La Dynamic Spectrum Alliance est une organisation mondiale qui milite en faveur de lois et de réglementations qui permettront une utilisation plus efficiente et plus efficace du spectre. Elle compte parmi ses membres des multinationales, des petites et moyennes entreprises, et des organisations universitaires, de recherche et autres du monde entier, qui s’attellent toutes à créer des solutions innovantes qui permettront d'accroître le spectre disponible au bénéfice tant des consommateurs que des entreprises. Pour plus d'informations, rendez-vous sur http://www.dynamicspectrumalliance.org/. La Dynamic Spectrum Alliance retourne en Afrique pour la cinquième édition de son sommet annuel mondial. Le sommet rassemble des décideurs politiques, régulateurs, universitaires et des représentants des secteurs public et privé disposant d'une expérience directe dans le développement et l'exécution d'un ensemble de régimes de partage du spectre, allant de l'attribution de licences exclusives aux attributions de spectre hors licence, en passant par divers régimes de partage de spectre sur une variété de bandes complémentaires, y compris celles qui permettront l'arrivée de la 5G. Dans un monde avec des dizaines de milliards d'appareils connectés sans fil, le partage de spectre est un aspect incontournable pour tout décideur cherchant des moyens innovants pour combler le fossé numérique et ouvrir la voie de l'internet des objets. Le sommet annuel de la Dynamic Spectrum Alliance est le principal événement consacré aux décideurs et aux régulateurs pour qu'ils puissent partager les meilleures pratiques, se tenir informés des dernières politiques de partage de spectre, et prendre part à des discussions visant à optimiser l'impact social et économique à l'échelle mondiale, aussi bien dans les villes que dans les régions reculées.


News Article | May 10, 2017
Site: www.marketwired.com

TORONTO, ONTARIO--(Marketwired - May 10, 2017) - Dundee Corporation (TSX:DC.A) ("Dundee") is pleased to announce that its subsidiary, United Hydrocarbon International Corp. ("United" or "UHIC") has entered into an agreement (the "Agreement") with Delonex Energy Ltd. ("Delonex") pursuant to which Delonex will acquire United Hydrocarbon Chad Ltd. ("UHCL"), a wholly owned subsidiary of United, and the holder of United's Production Sharing Contract ("PSC") in the Republic of Chad ("Chad"). Delonex will pay US$35 million on closing of the transaction, and will pay an additional US$50 million if first oil is achieved, including US$20 million for first oil at Doba and US$30 million for first oil at Block H. United will retain a royalty of 10 percent on Doba production and a five per cent royalty on all Block H production, payable unless the average price of Brent Crude oil is less than US$45 for a quarter. Under the terms of the Agreement, Delonex has committed US$65 million in funding within two years of the closing date for a comprehensive exploration program for the assets in Chad, and has committed, subject to commerciality being achieved, US$35 million for development in Doba. The exploration program will include 2D and 3D seismic programs and three exploration wells, representing a significant increase in activity compared to UHCL's current obligations. The Agreement will benefit Chad by ensuring the rapid exploration and development of Chad's hydrocarbon resources across the PSC and including in Block H, where there has been limited activity since the mid 1970's. Delonex is a Sub-Saharan oil and gas company focused on exploration, development and production. Delonex is currently active in Ethiopia, Kenya and Mozambique and the proposed transaction in Chad is part of the company's strategy for expanding its portfolio in Central & West Africa. Delonex is led by a management team with a proven track record in discovering, developing and operating world-class, onshore basins and building and operating pipeline infrastructure. Their core leadership team previously worked together at Cairn India, where they established a recoverable resource base of 1.2 billion barrels of oil onshore in Rajasthan, India, with plateau production of c. 200,000 barrels of oil per day. They also managed the successful financing and execution of integrated upstream and midstream development projects with a combined capital spend of over US$4 billion. The projects included development wells, processing facilities and the world's longest (c.700 km) continuously heated and insulated oil pipeline with an export terminal. Delonex is backed by a group of global investors with extensive oil & gas experience, led by global private equity firm Warburg Pincus and the International Finance Corporation (a part of the World Bank group). The transaction is subject to a number of conditions including approval from the Government of Chad and UHIC shareholder approval. A special meeting of UHIC shareholders to approve the Agreement is anticipated to be held by June 30, 2017. Dundee is a public Canadian independent holding company, listed on the Toronto Stock Exchange under the symbol "DC.A". Through its operating subsidiaries, Dundee is engaged in diverse business activities in the areas of investment advisory, corporate finance, energy, resources, agriculture, real estate and infrastructure. Dundee also holds, directly and indirectly, a portfolio of investments mostly in these key areas, as well as other select investments in both publicly listed and private enterprises. United Hydrocarbon International Corp. is a private junior exploration company with all of its assets located in Chad, Africa, comprised of four land blocks which are contained in one Production Sharing Contract. United's recent efforts have been dedicated to providing clear and informative scientific data to the world's oil industry participants to demonstrate Chad's immense potential with the objective of securing a partner(s) to convert the company's sizeable resource potential into reserves, production and cash flow. For further information, please visit UHIC's website at: http://www.unitedhydrocarbon.com. This press release contains forward-looking statements. More particularly, this press release contains statements concerning the terms of the Agreement, the timing and completion of the transaction, the timing of the special meeting of United shareholders and the anticipated benefits of the Transaction to Dundee and other stakeholders. The forward-looking statements in this press release are based on certain key expectations and assumptions made by Dundee, including expectations and assumptions concerning the prevailing market conditions, the actions and decisions by the Ministry of Petroleum and Energy in Chad, other decisions and approvals of the Government of Chad, commodity prices, and the availability of capital. Although Dundee believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Dundee can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, risks associated with adverse market conditions, the inability of United or Delonex to complete the Transaction at all or on the terms announced, not obtaining the required shareholder, government and regulatory approvals, and the risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserves estimates; the uncertainty of estimates and projections relating to production, costs and expenses; and health, safety and environmental risks), uncertainty as to the availability of labour and services, commodity price and exchange rate fluctuations, unexpected adverse weather conditions, general business, economic, competitive, political and social uncertainties, capital market conditions and market prices for securities and changes to existing laws and regulations and other risks as outlined in the 2016 Annual Information Form of Dundee and subsequent filings made with securities commissions in Canada. Forward-looking statements are based on estimates and opinions of management of Dundee at the time the statements are presented. Dundee undertakes no obligation to update or revise any forward-looking statements, except as required by applicable securities laws.


News Article | May 8, 2017
Site: globenewswire.com

HOUSTON, May 08, 2017 (GLOBE NEWSWIRE) -- VAALCO Energy, Inc. (NYSE:EGY) today reported operational and financial results for the first quarter 2017. For the first quarter of 2017, VAALCO reported income from continuing operations of $4.4 million, or $0.07 per diluted share. In the same period in 2016, the Company reported a loss from continuing operations of $15.4 million, or a loss of $0.26 per diluted share. The average realized price for crude oil in the first quarter of 2017 was $51.99 per barrel, up 92% from $27.07 per barrel in the first quarter of 2016.  Adjusted EBITDAX totaled $10.4 million in the first quarter of 2017 compared with a loss of $10.7 million in the same period of 2016. Adjusted EBITDAX is a Non-GAAP financial measure and is described and reconciled to net income (loss) in the attached table under “Non-GAAP Financial Measures.” Cary Bounds, VAALCO’s Chief Executive Officer commented: “We continue to enhance value by delivering solid production results and minimizing costs. We successfully completed two well interventions utilizing a cost effective hydraulic workover unit versus the traditional method of mobilizing a more expensive drilling rig. VAALCO produced 4,622 BOPD of net production which, coupled with improved pricing, allowed us to grow operating income and Adjusted EBITDAX significantly versus the fourth quarter 2016. Our focus in 2017 is to maximize margins through operational excellence and continue to execute on our corporate strategy while evaluating opportunistic transactions.” Bounds continued, “Financially, in the first quarter we reported earnings per share of $0.07, our highest earnings per share since the second quarter of 2014. Operationally, we delivered production above the high end of our guidance range and costs at the low end of the guidance range. We continue our evaluation of development opportunities on our offshore Gabon asset, and we are seeking similar growth opportunities in West Africa, where we can leverage our strong operational and technical expertise. We look to carry the positive momentum from the first quarter results forward into 2017.” On March 14, 2017, VAALCO borrowed $4.2 million of additional funds under its Supplemental Agreement with the International Finance Corporation (IFC) which was executed June 29, 2016. The borrowed funds will provide added financial flexibility and facilitate execution of VAALCO’s corporate strategy. The additional borrowings will be repaid in five quarterly principal installments commencing June 30, 2017, together with interest which will accrue at LIBOR plus 5.75%. At March 31, 2017, debt, net of deferred financing costs, totaled $15.0 million, of which $8.3 million was classified as current, reflecting the repayment terms of the new loan agreement with the IFC. On October 17, 2016, the Company signed a letter of intent to sell its entire acreage interests in the East Poplar Unit in Montana for $250,000 and the assumption of asset retirement obligations.  The transaction closed on April 3, 2017. In the first quarter of 2017, production increased 26% from 3,682 BOPD in the fourth quarter of 2016 to 4,622 BOPD. The Company was able to maintain and optimize production for the quarter following the successful workover operations that brought the South Tchibala 2-H and the Avouma 2-H wells back on production. VAALCO continues to examine alternative, lower cost development options for discoveries in the Mutamba Iroru permit onshore Gabon, and in Block P offshore Equatorial Guinea. These discoveries present unique development opportunities that will be re-evaluated as prices continue to recover. The loss from discontinued operations in the first quarter of 2017 totaled $0.2 million, or $0.00 loss per diluted share. The small loss from these discontinued operations for this quarter related to ongoing administrative costs.  In the first quarter of 2016, there was income from discontinued operations of $7.8 million, or $0.13 per diluted share which includes $7.6 million of bad debt recovery and $3.2 million of collected default interest partially offset by the associated tax expense of $3.0 million. Total oil and natural gas sales for the first quarter of 2017 were $21.3 million, compared to $11.0 million for the same period in 2016. During the first quarter of 2017, VAALCO sold approximately 394,000 net barrels of oil at an average price of $51.99 per barrel, compared to 381,000 net barrels at an average price of $27.07 per barrel in the first quarter of 2016. First quarter 2017 revenue was positively impacted by the increase in realized pricing and by increased sales volumes compared to the first quarter of 2016. Total production expense, excluding workovers, was $8.1 million, or $20.44 per BOE of sales, for the first quarter of 2017, compared to $7.0 million, or $18.03 per BOE of sales, for the first quarter of 2016. The first quarter of 2017 included additional customs fees of $0.5 million. Depreciation, depletion and amortization (DD&A) expense was $1.9 million, or $4.74 per BOE of sales in the three months ended March 31, 2017 compared to $2.2 million, or $5.81 per BOE in the comparable period in 2016. General and administrative (G&A) expense for the three months ended March 31, 2017 was $3.1 million, or $7.94 per BOE, as compared to $2.2 million, or $5.82 per BOE in the three months ended March 31, 2016. While the Company has taken significant steps to reduce overall G&A costs over the past 18 months, with decreases realized in personnel costs, incentive compensation, services and various other cost categories, the reduced drilling activity limits the amount of overhead that VAALCO can recover from its partners. General and administrative expense includes $0.2 million and $0.4 million of non-cash compensation expense for the quarters ended March 31, 2017 and March 31, 2016. Income tax expense for the first quarter of 2017 was $3.2 million compared to $1.7 million for the same period in 2016.  The increase in tax compared to the same period a year ago is primarily attributable to higher revenues from the Company’s operations in Gabon. In order to limit VAALCO’s commodity price risk, in 2016 the Company purchased crude oil puts for part of its 2017 volume. As of March 31, 2017, VAALCO had unexpired crude oil put contracts covering 540,000 barrels of anticipated sales volumes for the period from April 2017 through December 31, 2017 at a weighted average price of $49.63. The Company recorded a non-cash mark-to-market charge of $0.2 million related to the puts during the first quarter of 2017 which was included in other, net in the Condensed Consolidated Statements of Operations. The Company has not entered into additional derivative contracts since March 31, 2017. During the three months ended March 31, 2017, the Company did not undertake any new capital projects. The capital expenditures on a cash basis were $0.8 million primarily for equipment and enhancements. At the end of the first quarter, VAALCO had an unrestricted cash balance of $24.2 million.  This does not include an additional $0.8 million in restricted cash (related primarily to deposits in Gabon) classified as current assets or the additional $0.9 million of restricted cash classified as long term. As previously announced, the Company will hold a conference call to discuss its first quarter financial and operating results tomorrow, Tuesday, May 9, 2017, at 8:00 a.m. Central Time (9:00 a.m. Eastern Time). Interested parties may participate by dialing (844) 841-1668.  International parties may dial (661) 378-9859.  The confirmation code is 16558969.  This call will also be webcast on VAALCO’s website at www.vaalco.com. An audio replay will be available beginning approximately two hours after the end of the call and be available through May 16, 2017 by dialing (855) 859-2056.  International parties may dial (404) 537-3406. The confirmation code is 16558969. 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.  All statements, other than statements of historical facts, included in this document that address activities, events, plans, expectations, objectives or developments that VAALCO expects, believes or anticipates will or may occur in the future are forward-looking statements.  These statements may include amounts due in connection with the Company’s withdrawal from Angola, expected sources of future capital funding and future liquidity, future operating losses, future changes in oil and natural gas prices, future strategic alternatives, capital expenditures, future drilling plans, prospect evaluations, negotiations with governments and third parties including with the government of the Republic of Gabon in connection with a revised production sharing contract, expectations regarding processing facilities, reserve growth, and other issues related to our exit from Angola.  These statements are based on assumptions made by VAALCO based on its experience and 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, oil and gas price volatility, inflation, general economic conditions, the Company's success in discovering, developing and producing reserves, decisions by our current lender or future lenders, the risks associated with liquidity, the risk that our negotiations with the governments of the Republic of Gabon and the Republic of Angola will be unsuccessful, lack of availability of goods, services and capital, environmental risks, drilling risks, foreign regulatory and 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, 2016 and quarterly report on Form 10-Q for the quarter ended March 31, 2017, which will be filed shortly, 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 9800 Richmond Avenue, Suite 700, Houston, Texas 77042, (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. VAALCO Energy, Inc. is a Houston, Texas 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 development and exploitation of international oil and natural gas properties. The Company's properties and exploration acreage are located primarily in Gabon and Equatorial Guinea in West Africa. Adjusted EBITDAX is a supplemental non-GAAP financial measure used by VAALCO’s management and by external users of the Company’s financial statements, such as industry analysts, lenders, rating agencies, investors and others who follow the industry as an indicator of the Company’s ability to internally fund exploration and development activities and to service or incur additional debt. Adjusted EBITDAX is a non-GAAP financial measure and as used herein represents net income before discontinued operations, interest income (expense) net, income tax expense, depletion, depreciation and amortization, impairment of proved properties, exploration expense, non-cash and other items including stock compensation expense and commodity derivative loss. Adjusted EBITDAX has significant limitations, including that it does not reflect the Company’s cash requirements for capital expenditures, contractual commitments, working capital or debt service. Adjusted EBITDAX should not be considered as a substitute for net income (loss), operating income (loss), cash flows from operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP. Adjusted EBITDAX excludes some, but not all, items that affect net income (loss) and operating income (loss) and these measures may vary among other companies. Therefore, the Company’s Adjusted EBITDAX may not be comparable to similarly titled measures used by other companies. The table below reconciles the most directly comparable GAAP financial measures to Adjusted EBITDAX.


News Article | May 8, 2017
Site: globenewswire.com

HOUSTON, May 08, 2017 (GLOBE NEWSWIRE) -- VAALCO Energy, Inc. (NYSE:EGY) today reported operational and financial results for the first quarter 2017. For the first quarter of 2017, VAALCO reported income from continuing operations of $4.4 million, or $0.07 per diluted share. In the same period in 2016, the Company reported a loss from continuing operations of $15.4 million, or a loss of $0.26 per diluted share. The average realized price for crude oil in the first quarter of 2017 was $51.99 per barrel, up 92% from $27.07 per barrel in the first quarter of 2016.  Adjusted EBITDAX totaled $10.4 million in the first quarter of 2017 compared with a loss of $10.7 million in the same period of 2016. Adjusted EBITDAX is a Non-GAAP financial measure and is described and reconciled to net income (loss) in the attached table under “Non-GAAP Financial Measures.” Cary Bounds, VAALCO’s Chief Executive Officer commented: “We continue to enhance value by delivering solid production results and minimizing costs. We successfully completed two well interventions utilizing a cost effective hydraulic workover unit versus the traditional method of mobilizing a more expensive drilling rig. VAALCO produced 4,622 BOPD of net production which, coupled with improved pricing, allowed us to grow operating income and Adjusted EBITDAX significantly versus the fourth quarter 2016. Our focus in 2017 is to maximize margins through operational excellence and continue to execute on our corporate strategy while evaluating opportunistic transactions.” Bounds continued, “Financially, in the first quarter we reported earnings per share of $0.07, our highest earnings per share since the second quarter of 2014. Operationally, we delivered production above the high end of our guidance range and costs at the low end of the guidance range. We continue our evaluation of development opportunities on our offshore Gabon asset, and we are seeking similar growth opportunities in West Africa, where we can leverage our strong operational and technical expertise. We look to carry the positive momentum from the first quarter results forward into 2017.” On March 14, 2017, VAALCO borrowed $4.2 million of additional funds under its Supplemental Agreement with the International Finance Corporation (IFC) which was executed June 29, 2016. The borrowed funds will provide added financial flexibility and facilitate execution of VAALCO’s corporate strategy. The additional borrowings will be repaid in five quarterly principal installments commencing June 30, 2017, together with interest which will accrue at LIBOR plus 5.75%. At March 31, 2017, debt, net of deferred financing costs, totaled $15.0 million, of which $8.3 million was classified as current, reflecting the repayment terms of the new loan agreement with the IFC. On October 17, 2016, the Company signed a letter of intent to sell its entire acreage interests in the East Poplar Unit in Montana for $250,000 and the assumption of asset retirement obligations.  The transaction closed on April 3, 2017. In the first quarter of 2017, production increased 26% from 3,682 BOPD in the fourth quarter of 2016 to 4,622 BOPD. The Company was able to maintain and optimize production for the quarter following the successful workover operations that brought the South Tchibala 2-H and the Avouma 2-H wells back on production. VAALCO continues to examine alternative, lower cost development options for discoveries in the Mutamba Iroru permit onshore Gabon, and in Block P offshore Equatorial Guinea. These discoveries present unique development opportunities that will be re-evaluated as prices continue to recover. The loss from discontinued operations in the first quarter of 2017 totaled $0.2 million, or $0.00 loss per diluted share. The small loss from these discontinued operations for this quarter related to ongoing administrative costs.  In the first quarter of 2016, there was income from discontinued operations of $7.8 million, or $0.13 per diluted share which includes $7.6 million of bad debt recovery and $3.2 million of collected default interest partially offset by the associated tax expense of $3.0 million. Total oil and natural gas sales for the first quarter of 2017 were $21.3 million, compared to $11.0 million for the same period in 2016. During the first quarter of 2017, VAALCO sold approximately 394,000 net barrels of oil at an average price of $51.99 per barrel, compared to 381,000 net barrels at an average price of $27.07 per barrel in the first quarter of 2016. First quarter 2017 revenue was positively impacted by the increase in realized pricing and by increased sales volumes compared to the first quarter of 2016. Total production expense, excluding workovers, was $8.1 million, or $20.44 per BOE of sales, for the first quarter of 2017, compared to $7.0 million, or $18.03 per BOE of sales, for the first quarter of 2016. The first quarter of 2017 included additional customs fees of $0.5 million. Depreciation, depletion and amortization (DD&A) expense was $1.9 million, or $4.74 per BOE of sales in the three months ended March 31, 2017 compared to $2.2 million, or $5.81 per BOE in the comparable period in 2016. General and administrative (G&A) expense for the three months ended March 31, 2017 was $3.1 million, or $7.94 per BOE, as compared to $2.2 million, or $5.82 per BOE in the three months ended March 31, 2016. While the Company has taken significant steps to reduce overall G&A costs over the past 18 months, with decreases realized in personnel costs, incentive compensation, services and various other cost categories, the reduced drilling activity limits the amount of overhead that VAALCO can recover from its partners. General and administrative expense includes $0.2 million and $0.4 million of non-cash compensation expense for the quarters ended March 31, 2017 and March 31, 2016. Income tax expense for the first quarter of 2017 was $3.2 million compared to $1.7 million for the same period in 2016.  The increase in tax compared to the same period a year ago is primarily attributable to higher revenues from the Company’s operations in Gabon. In order to limit VAALCO’s commodity price risk, in 2016 the Company purchased crude oil puts for part of its 2017 volume. As of March 31, 2017, VAALCO had unexpired crude oil put contracts covering 540,000 barrels of anticipated sales volumes for the period from April 2017 through December 31, 2017 at a weighted average price of $49.63. The Company recorded a non-cash mark-to-market charge of $0.2 million related to the puts during the first quarter of 2017 which was included in other, net in the Condensed Consolidated Statements of Operations. The Company has not entered into additional derivative contracts since March 31, 2017. During the three months ended March 31, 2017, the Company did not undertake any new capital projects. The capital expenditures on a cash basis were $0.8 million primarily for equipment and enhancements. At the end of the first quarter, VAALCO had an unrestricted cash balance of $24.2 million.  This does not include an additional $0.8 million in restricted cash (related primarily to deposits in Gabon) classified as current assets or the additional $0.9 million of restricted cash classified as long term. As previously announced, the Company will hold a conference call to discuss its first quarter financial and operating results tomorrow, Tuesday, May 9, 2017, at 8:00 a.m. Central Time (9:00 a.m. Eastern Time). Interested parties may participate by dialing (844) 841-1668.  International parties may dial (661) 378-9859.  The confirmation code is 16558969.  This call will also be webcast on VAALCO’s website at www.vaalco.com. An audio replay will be available beginning approximately two hours after the end of the call and be available through May 16, 2017 by dialing (855) 859-2056.  International parties may dial (404) 537-3406. The confirmation code is 16558969. 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.  All statements, other than statements of historical facts, included in this document that address activities, events, plans, expectations, objectives or developments that VAALCO expects, believes or anticipates will or may occur in the future are forward-looking statements.  These statements may include amounts due in connection with the Company’s withdrawal from Angola, expected sources of future capital funding and future liquidity, future operating losses, future changes in oil and natural gas prices, future strategic alternatives, capital expenditures, future drilling plans, prospect evaluations, negotiations with governments and third parties including with the government of the Republic of Gabon in connection with a revised production sharing contract, expectations regarding processing facilities, reserve growth, and other issues related to our exit from Angola.  These statements are based on assumptions made by VAALCO based on its experience and 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, oil and gas price volatility, inflation, general economic conditions, the Company's success in discovering, developing and producing reserves, decisions by our current lender or future lenders, the risks associated with liquidity, the risk that our negotiations with the governments of the Republic of Gabon and the Republic of Angola will be unsuccessful, lack of availability of goods, services and capital, environmental risks, drilling risks, foreign regulatory and 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, 2016 and quarterly report on Form 10-Q for the quarter ended March 31, 2017, which will be filed shortly, 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 9800 Richmond Avenue, Suite 700, Houston, Texas 77042, (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. VAALCO Energy, Inc. is a Houston, Texas 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 development and exploitation of international oil and natural gas properties. The Company's properties and exploration acreage are located primarily in Gabon and Equatorial Guinea in West Africa. Adjusted EBITDAX is a supplemental non-GAAP financial measure used by VAALCO’s management and by external users of the Company’s financial statements, such as industry analysts, lenders, rating agencies, investors and others who follow the industry as an indicator of the Company’s ability to internally fund exploration and development activities and to service or incur additional debt. Adjusted EBITDAX is a non-GAAP financial measure and as used herein represents net income before discontinued operations, interest income (expense) net, income tax expense, depletion, depreciation and amortization, impairment of proved properties, exploration expense, non-cash and other items including stock compensation expense and commodity derivative loss. Adjusted EBITDAX has significant limitations, including that it does not reflect the Company’s cash requirements for capital expenditures, contractual commitments, working capital or debt service. Adjusted EBITDAX should not be considered as a substitute for net income (loss), operating income (loss), cash flows from operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP. Adjusted EBITDAX excludes some, but not all, items that affect net income (loss) and operating income (loss) and these measures may vary among other companies. Therefore, the Company’s Adjusted EBITDAX may not be comparable to similarly titled measures used by other companies. The table below reconciles the most directly comparable GAAP financial measures to Adjusted EBITDAX.


Cape Town, South Africa, 10 May 2017: The Dynamic Spectrum Alliance (DSA), the National Communications Authority (NCA), Ghana, and the Independent Communications Authority of South Africa (ICASA) have given the opening keynote addresses to kick off the 2017 DSA Global Summit in Cape Town, South Africa. Welcoming everyone to the conference, the keynote speakers summarised how important spectrum issues are today, to help solve the digital divide and make Internet access a reality everywhere. The DSA Global Summit (May 9-11) is being co-hosted with the Independent Communications Authority of South Africa (ICASA), which recently published draft regulations on the use of TV White Space (TVWS) in the country and are open for public consultation until 19 May 2017. Following the morning keynotes, Kalpak Gude, President of the DSA, presented a session titled ‘Spectrum Sharing Unleashed.’ The session focused on the spectrum requirements for the next generation Internet and the benefits of dynamic spectrum access to help meet those spectrum needs. Gude also discussed how dynamic access technology is ready today to help bring connectivity to everyone, everywhere. Speaking during the conference, Gude commented: “The demands for greater broadband access continue to grow at a rapid pace. As the world becomes more mobile, the Internet has also become far more dependent on wireless access. As we move to the next generation networks that will support the demands of an always connected society, we must confront the reality that four billion of our fellow citizens on earth lack any real connectivity. They are being left behind as the fortunate few race ahead. Access to spectrum is part of the solution to both problems confronting regulators and society.” Before the conference broke for lunch, industry leaders from the finance community, government and commercial operators came together on a panel, moderated by Mr. Frank McCosker, General Manager, Affordable Access Microsoft 4Afrika Initiatives, titled ‘Closing the Digital Divide: Addressing financial challenges to facilitate economic growth.’ Participants included representatives from the International Finance Corporation, the Overseas Private Investment Corporation (OPIC), Prescient, the Universal Service and Access Agency of South Africa (USAASA), Project Isizwe and Zenzeleni Networks. The panel looked at case studies of how new global connectivity ecosystems based on new spectrum approaches are financed. “A lack of access to capital in the emerging markets of Asia, Africa, Latin America and the Caribbean has remained one of the main barriers to commercially sustainable investments in new spectrum-related technologies,” said Rob Henley, Principal, Prescient Capital. “Smart financing approaches are required to push new ecosystems that lower costs and speed of deployment.” The DSA also hosted its regulator workshop yesterday, which brought together regulators and government officials from Africa, Europe, Latin America, North America, and Asia around the world to discuss spectrum sharing and dynamic spectrum access on an international-wide level. Two new members are also being welcomed to the DSA this week, including ViaSat, a leading global broadband services and technology company and Brightwave, a telecoms and broadband network and services company. Brightwave has developed an extensive last mile Fibre and WiFi network within the City of Johannesburg to deliver high speed but affordable broadband access to the majority. For further information about the Dynamic Spectrum Alliance and the Global Summit 2017, please visit www.dynamicspectrumalliance.org/ or follow @dynamicspectrum and #DSA17GS on Twitter. Alternatively join the Alliance on Facebook or LinkedIn. About the Dynamic Spectrum Alliance The Dynamic Spectrum Alliance is a global organization advocating for laws and regulations that will lead to more efficient and effective spectrum utilization. The DSA’s membership spans multinationals, small- and medium-sized enterprises, and academic, research, and other organizations from around the world, all working to create innovative solutions that will increase the amount of available spectrum to the benefit of consumers and businesses alike. Visit http://www.dynamicspectrumalliance.org/. About the Dynamic Spectrum Alliance Global Summit The Dynamic Spectrum Alliance returns to Africa for its Fifth Annual Global Summit. The Global Summit brings together policy makers, regulators, academia, and public and private sector representatives with first-hand experience developing and implementing a range of spectrum sharing regimes, from exclusive use licensing to unlicensed spectrum allocations to various kinds of spectrum sharing regimes across a variety of complementary spectrum bands, including those that will enable 5G to come to life. In a world with tens of billions of wirelessly connected devices, spectrum sharing is a must for any policy maker looking for innovative ways to close the digital divide and enable the Internet of Things. The Dynamic Spectrum Alliance’s annual Summit is the premier event for policy makers and regulators to share best practices, learn about the latest spectrum sharing policies, and participate in discussions on how to maximize social and economic impact in urban cities and remote regions across the Globe. Media Contact For all media enquiries, please contact Sian Borrill by emailing sian.borrill@proactive-pr.com.


News Article | May 13, 2017
Site: www.prnewswire.com

(ii) The hiring, by Sabesp, of the International Finance Corporation ("IFC"), an institution bound to the World Bank; and (iii) The conclusion of an agreement between Sabesp and the São Paulo State Government, through the Secretariat of Sanitary and Water Resources and the Secretariat of Finance, to delineate the scope of the IFC's hiring and to govern the relationship between the contracting parties, including proportional reimbursement of expenses. The proposed Capitalization provides the establishment of a new company to exercise Sabesp's direct corporate control after the conference of the totality of share interest owned by the São Paulo State Government into the stock capital of the new company. São Paulo State Government will continue, under any circumstances, to hold sufficient shareholding interest to assure the exercise of Sabesp's majority corporate control, as provided by law. The purpose of the Capitalization is to overcome financial restrictiveness and preserve the expansion of the activities of universalization of basic sanitation services promoted by the Company. If further studies are implemented, new information will be disclosed regarding the possible Capitalization, which, if continued, may provide for the admission of institutional investors in order to fund the new company's share capital, allowing to strengthen Sabesp's corporate governance and business efficiency in order to preserve the development of its activities of universal sanitation services in the São Paulo State. During this process the Company will disclose any relevant developments over this subject. The Resolution is available on Sabesp's Investor Relations website, section Material Facts. To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/material-fact-300457150.html


News Article | May 8, 2017
Site: globenewswire.com

HOUSTON, May 08, 2017 (GLOBE NEWSWIRE) -- VAALCO Energy, Inc. (NYSE:EGY) today reported operational and financial results for the first quarter 2017. For the first quarter of 2017, VAALCO reported income from continuing operations of $4.4 million, or $0.07 per diluted share. In the same period in 2016, the Company reported a loss from continuing operations of $15.4 million, or a loss of $0.26 per diluted share. The average realized price for crude oil in the first quarter of 2017 was $51.99 per barrel, up 92% from $27.07 per barrel in the first quarter of 2016.  Adjusted EBITDAX totaled $10.4 million in the first quarter of 2017 compared with a loss of $10.7 million in the same period of 2016. Adjusted EBITDAX is a Non-GAAP financial measure and is described and reconciled to net income (loss) in the attached table under “Non-GAAP Financial Measures.” Cary Bounds, VAALCO’s Chief Executive Officer commented: “We continue to enhance value by delivering solid production results and minimizing costs. We successfully completed two well interventions utilizing a cost effective hydraulic workover unit versus the traditional method of mobilizing a more expensive drilling rig. VAALCO produced 4,622 BOPD of net production which, coupled with improved pricing, allowed us to grow operating income and Adjusted EBITDAX significantly versus the fourth quarter 2016. Our focus in 2017 is to maximize margins through operational excellence and continue to execute on our corporate strategy while evaluating opportunistic transactions.” Bounds continued, “Financially, in the first quarter we reported earnings per share of $0.07, our highest earnings per share since the second quarter of 2014. Operationally, we delivered production above the high end of our guidance range and costs at the low end of the guidance range. We continue our evaluation of development opportunities on our offshore Gabon asset, and we are seeking similar growth opportunities in West Africa, where we can leverage our strong operational and technical expertise. We look to carry the positive momentum from the first quarter results forward into 2017.” On March 14, 2017, VAALCO borrowed $4.2 million of additional funds under its Supplemental Agreement with the International Finance Corporation (IFC) which was executed June 29, 2016. The borrowed funds will provide added financial flexibility and facilitate execution of VAALCO’s corporate strategy. The additional borrowings will be repaid in five quarterly principal installments commencing June 30, 2017, together with interest which will accrue at LIBOR plus 5.75%. At March 31, 2017, debt, net of deferred financing costs, totaled $15.0 million, of which $8.3 million was classified as current, reflecting the repayment terms of the new loan agreement with the IFC. On October 17, 2016, the Company signed a letter of intent to sell its entire acreage interests in the East Poplar Unit in Montana for $250,000 and the assumption of asset retirement obligations.  The transaction closed on April 3, 2017. In the first quarter of 2017, production increased 26% from 3,682 BOPD in the fourth quarter of 2016 to 4,622 BOPD. The Company was able to maintain and optimize production for the quarter following the successful workover operations that brought the South Tchibala 2-H and the Avouma 2-H wells back on production. VAALCO continues to examine alternative, lower cost development options for discoveries in the Mutamba Iroru permit onshore Gabon, and in Block P offshore Equatorial Guinea. These discoveries present unique development opportunities that will be re-evaluated as prices continue to recover. The loss from discontinued operations in the first quarter of 2017 totaled $0.2 million, or $0.00 loss per diluted share. The small loss from these discontinued operations for this quarter related to ongoing administrative costs.  In the first quarter of 2016, there was income from discontinued operations of $7.8 million, or $0.13 per diluted share which includes $7.6 million of bad debt recovery and $3.2 million of collected default interest partially offset by the associated tax expense of $3.0 million. Total oil and natural gas sales for the first quarter of 2017 were $21.3 million, compared to $11.0 million for the same period in 2016. During the first quarter of 2017, VAALCO sold approximately 394,000 net barrels of oil at an average price of $51.99 per barrel, compared to 381,000 net barrels at an average price of $27.07 per barrel in the first quarter of 2016. First quarter 2017 revenue was positively impacted by the increase in realized pricing and by increased sales volumes compared to the first quarter of 2016. Total production expense, excluding workovers, was $8.1 million, or $20.44 per BOE of sales, for the first quarter of 2017, compared to $7.0 million, or $18.03 per BOE of sales, for the first quarter of 2016. The first quarter of 2017 included additional customs fees of $0.5 million. Depreciation, depletion and amortization (DD&A) expense was $1.9 million, or $4.74 per BOE of sales in the three months ended March 31, 2017 compared to $2.2 million, or $5.81 per BOE in the comparable period in 2016. General and administrative (G&A) expense for the three months ended March 31, 2017 was $3.1 million, or $7.94 per BOE, as compared to $2.2 million, or $5.82 per BOE in the three months ended March 31, 2016. While the Company has taken significant steps to reduce overall G&A costs over the past 18 months, with decreases realized in personnel costs, incentive compensation, services and various other cost categories, the reduced drilling activity limits the amount of overhead that VAALCO can recover from its partners. General and administrative expense includes $0.2 million and $0.4 million of non-cash compensation expense for the quarters ended March 31, 2017 and March 31, 2016. Income tax expense for the first quarter of 2017 was $3.2 million compared to $1.7 million for the same period in 2016.  The increase in tax compared to the same period a year ago is primarily attributable to higher revenues from the Company’s operations in Gabon. In order to limit VAALCO’s commodity price risk, in 2016 the Company purchased crude oil puts for part of its 2017 volume. As of March 31, 2017, VAALCO had unexpired crude oil put contracts covering 540,000 barrels of anticipated sales volumes for the period from April 2017 through December 31, 2017 at a weighted average price of $49.63. The Company recorded a non-cash mark-to-market charge of $0.2 million related to the puts during the first quarter of 2017 which was included in other, net in the Condensed Consolidated Statements of Operations. The Company has not entered into additional derivative contracts since March 31, 2017. During the three months ended March 31, 2017, the Company did not undertake any new capital projects. The capital expenditures on a cash basis were $0.8 million primarily for equipment and enhancements. At the end of the first quarter, VAALCO had an unrestricted cash balance of $24.2 million.  This does not include an additional $0.8 million in restricted cash (related primarily to deposits in Gabon) classified as current assets or the additional $0.9 million of restricted cash classified as long term. As previously announced, the Company will hold a conference call to discuss its first quarter financial and operating results tomorrow, Tuesday, May 9, 2017, at 8:00 a.m. Central Time (9:00 a.m. Eastern Time). Interested parties may participate by dialing (844) 841-1668.  International parties may dial (661) 378-9859.  The confirmation code is 16558969.  This call will also be webcast on VAALCO’s website at www.vaalco.com. An audio replay will be available beginning approximately two hours after the end of the call and be available through May 16, 2017 by dialing (855) 859-2056.  International parties may dial (404) 537-3406. The confirmation code is 16558969. 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.  All statements, other than statements of historical facts, included in this document that address activities, events, plans, expectations, objectives or developments that VAALCO expects, believes or anticipates will or may occur in the future are forward-looking statements.  These statements may include amounts due in connection with the Company’s withdrawal from Angola, expected sources of future capital funding and future liquidity, future operating losses, future changes in oil and natural gas prices, future strategic alternatives, capital expenditures, future drilling plans, prospect evaluations, negotiations with governments and third parties including with the government of the Republic of Gabon in connection with a revised production sharing contract, expectations regarding processing facilities, reserve growth, and other issues related to our exit from Angola.  These statements are based on assumptions made by VAALCO based on its experience and 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, oil and gas price volatility, inflation, general economic conditions, the Company's success in discovering, developing and producing reserves, decisions by our current lender or future lenders, the risks associated with liquidity, the risk that our negotiations with the governments of the Republic of Gabon and the Republic of Angola will be unsuccessful, lack of availability of goods, services and capital, environmental risks, drilling risks, foreign regulatory and 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, 2016 and quarterly report on Form 10-Q for the quarter ended March 31, 2017, which will be filed shortly, 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 9800 Richmond Avenue, Suite 700, Houston, Texas 77042, (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. VAALCO Energy, Inc. is a Houston, Texas 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 development and exploitation of international oil and natural gas properties. The Company's properties and exploration acreage are located primarily in Gabon and Equatorial Guinea in West Africa. Adjusted EBITDAX is a supplemental non-GAAP financial measure used by VAALCO’s management and by external users of the Company’s financial statements, such as industry analysts, lenders, rating agencies, investors and others who follow the industry as an indicator of the Company’s ability to internally fund exploration and development activities and to service or incur additional debt. Adjusted EBITDAX is a non-GAAP financial measure and as used herein represents net income before discontinued operations, interest income (expense) net, income tax expense, depletion, depreciation and amortization, impairment of proved properties, exploration expense, non-cash and other items including stock compensation expense and commodity derivative loss. Adjusted EBITDAX has significant limitations, including that it does not reflect the Company’s cash requirements for capital expenditures, contractual commitments, working capital or debt service. Adjusted EBITDAX should not be considered as a substitute for net income (loss), operating income (loss), cash flows from operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP. Adjusted EBITDAX excludes some, but not all, items that affect net income (loss) and operating income (loss) and these measures may vary among other companies. Therefore, the Company’s Adjusted EBITDAX may not be comparable to similarly titled measures used by other companies. The table below reconciles the most directly comparable GAAP financial measures to Adjusted EBITDAX.


CAPE TOWN, South Africa--(BUSINESS WIRE)--The Dynamic Spectrum Alliance (DSA), the National Communications Authority (NCA), Ghana, and the Independent Communications Authority of South Africa (ICASA) have given the opening keynote addresses to kick off the 2017 DSA Global Summit in Cape Town, South Africa. Welcoming everyone to the conference, the keynote speakers summarised how important spectrum issues are today, to help solve the digital divide and make Internet access a reality everywhere. The DSA Global Summit (May 9-11) is being co-hosted with the Independent Communications Authority of South Africa (ICASA), which recently published draft regulations on the use of TV White Space (TVWS) in the country and are open for public consultation until 19 May 2017. Following the morning keynotes, Kalpak Gude, President of the DSA, presented a session titled ‘Spectrum Sharing Unleashed.’ The session focused on the spectrum requirements for the next generation Internet and the benefits of dynamic spectrum access to help meet those spectrum needs. Gude also discussed how dynamic access technology is ready today to help bring connectivity to everyone, everywhere. Speaking during the conference, Gude commented: “The demands for greater broadband access continue to grow at a rapid pace. As the world becomes more mobile, the Internet has also become far more dependent on wireless access. As we move to the next generation networks that will support the demands of an always connected society, we must confront the reality that four billion of our fellow citizens on earth lack any real connectivity. They are being left behind as the fortunate few race ahead. Access to spectrum is part of the solution to both problems confronting regulators and society.” Before the conference broke for lunch, industry leaders from the finance community, government and commercial operators came together on a panel, moderated by Mr. Frank McCosker, General Manager, Affordable Access Microsoft 4Afrika Initiatives, titled ‘Closing the Digital Divide: Addressing financial challenges to facilitate economic growth.’ Participants included representatives from the International Finance Corporation, the Overseas Private Investment Corporation (OPIC), Prescient, the Universal Service and Access Agency of South Africa (USAASA), Project Isizwe and Zenzeleni Networks. The panel looked at case studies of how new global connectivity ecosystems based on new spectrum approaches are financed. “A lack of access to capital in the emerging markets of Asia, Africa, Latin America and the Caribbean has remained one of the main barriers to commercially sustainable investments in new spectrum-related technologies,” said Rob Henley, Principal, Prescient Capital. “Smart financing approaches are required to push new ecosystems that lower costs and speed of deployment.” The DSA also hosted its regulator workshop yesterday, which brought together regulators and government officials from Africa, Europe, Latin America, North America, and Asia around the world to discuss spectrum sharing and dynamic spectrum access on an international-wide level. Two new members are also being welcomed to the DSA this week, including ViaSat, a leading global broadband services and technology company and Brightwave, a telecoms and broadband network and services company. Brightwave has developed an extensive last mile Fibre and WiFi network within the City of Johannesburg to deliver high speed but affordable broadband access to the majority. For further information about the Dynamic Spectrum Alliance and the Global Summit 2017, please visit www.dynamicspectrumalliance.org/ or follow @dynamicspectrum and #DSA17GS on Twitter. Alternatively join the Alliance on Facebook or LinkedIn. The Dynamic Spectrum Alliance is a global organization advocating for laws and regulations that will lead to more efficient and effective spectrum utilization. The DSA’s membership spans multinationals, small- and medium-sized enterprises, and academic, research, and other organizations from around the world, all working to create innovative solutions that will increase the amount of available spectrum to the benefit of consumers and businesses alike. Visit http://www.dynamicspectrumalliance.org/. The Dynamic Spectrum Alliance returns to Africa for its Fifth Annual Global Summit. The Global Summit brings together policy makers, regulators, academia, and public and private sector representatives with first-hand experience developing and implementing a range of spectrum sharing regimes, from exclusive use licensing to unlicensed spectrum allocations to various kinds of spectrum sharing regimes across a variety of complementary spectrum bands, including those that will enable 5G to come to life. In a world with tens of billions of wirelessly connected devices, spectrum sharing is a must for any policy maker looking for innovative ways to close the digital divide and enable the Internet of Things. The Dynamic Spectrum Alliance’s annual Summit is the premier event for policy makers and regulators to share best practices, learn about the latest spectrum sharing policies, and participate in discussions on how to maximize social and economic impact in urban cities and remote regions across the Globe.


News Article | May 8, 2017
Site: globenewswire.com

HOUSTON, May 08, 2017 (GLOBE NEWSWIRE) -- VAALCO Energy, Inc. (NYSE:EGY) today reported operational and financial results for the first quarter 2017. For the first quarter of 2017, VAALCO reported income from continuing operations of $4.4 million, or $0.07 per diluted share. In the same period in 2016, the Company reported a loss from continuing operations of $15.4 million, or a loss of $0.26 per diluted share. The average realized price for crude oil in the first quarter of 2017 was $51.99 per barrel, up 92% from $27.07 per barrel in the first quarter of 2016.  Adjusted EBITDAX totaled $10.4 million in the first quarter of 2017 compared with a loss of $10.7 million in the same period of 2016. Adjusted EBITDAX is a Non-GAAP financial measure and is described and reconciled to net income (loss) in the attached table under “Non-GAAP Financial Measures.” Cary Bounds, VAALCO’s Chief Executive Officer commented: “We continue to enhance value by delivering solid production results and minimizing costs. We successfully completed two well interventions utilizing a cost effective hydraulic workover unit versus the traditional method of mobilizing a more expensive drilling rig. VAALCO produced 4,622 BOPD of net production which, coupled with improved pricing, allowed us to grow operating income and Adjusted EBITDAX significantly versus the fourth quarter 2016. Our focus in 2017 is to maximize margins through operational excellence and continue to execute on our corporate strategy while evaluating opportunistic transactions.” Bounds continued, “Financially, in the first quarter we reported earnings per share of $0.07, our highest earnings per share since the second quarter of 2014. Operationally, we delivered production above the high end of our guidance range and costs at the low end of the guidance range. We continue our evaluation of development opportunities on our offshore Gabon asset, and we are seeking similar growth opportunities in West Africa, where we can leverage our strong operational and technical expertise. We look to carry the positive momentum from the first quarter results forward into 2017.” On March 14, 2017, VAALCO borrowed $4.2 million of additional funds under its Supplemental Agreement with the International Finance Corporation (IFC) which was executed June 29, 2016. The borrowed funds will provide added financial flexibility and facilitate execution of VAALCO’s corporate strategy. The additional borrowings will be repaid in five quarterly principal installments commencing June 30, 2017, together with interest which will accrue at LIBOR plus 5.75%. At March 31, 2017, debt, net of deferred financing costs, totaled $15.0 million, of which $8.3 million was classified as current, reflecting the repayment terms of the new loan agreement with the IFC. On October 17, 2016, the Company signed a letter of intent to sell its entire acreage interests in the East Poplar Unit in Montana for $250,000 and the assumption of asset retirement obligations.  The transaction closed on April 3, 2017. In the first quarter of 2017, production increased 26% from 3,682 BOPD in the fourth quarter of 2016 to 4,622 BOPD. The Company was able to maintain and optimize production for the quarter following the successful workover operations that brought the South Tchibala 2-H and the Avouma 2-H wells back on production. VAALCO continues to examine alternative, lower cost development options for discoveries in the Mutamba Iroru permit onshore Gabon, and in Block P offshore Equatorial Guinea. These discoveries present unique development opportunities that will be re-evaluated as prices continue to recover. The loss from discontinued operations in the first quarter of 2017 totaled $0.2 million, or $0.00 loss per diluted share. The small loss from these discontinued operations for this quarter related to ongoing administrative costs.  In the first quarter of 2016, there was income from discontinued operations of $7.8 million, or $0.13 per diluted share which includes $7.6 million of bad debt recovery and $3.2 million of collected default interest partially offset by the associated tax expense of $3.0 million. Total oil and natural gas sales for the first quarter of 2017 were $21.3 million, compared to $11.0 million for the same period in 2016. During the first quarter of 2017, VAALCO sold approximately 394,000 net barrels of oil at an average price of $51.99 per barrel, compared to 381,000 net barrels at an average price of $27.07 per barrel in the first quarter of 2016. First quarter 2017 revenue was positively impacted by the increase in realized pricing and by increased sales volumes compared to the first quarter of 2016. Total production expense, excluding workovers, was $8.1 million, or $20.44 per BOE of sales, for the first quarter of 2017, compared to $7.0 million, or $18.03 per BOE of sales, for the first quarter of 2016. The first quarter of 2017 included additional customs fees of $0.5 million. Depreciation, depletion and amortization (DD&A) expense was $1.9 million, or $4.74 per BOE of sales in the three months ended March 31, 2017 compared to $2.2 million, or $5.81 per BOE in the comparable period in 2016. General and administrative (G&A) expense for the three months ended March 31, 2017 was $3.1 million, or $7.94 per BOE, as compared to $2.2 million, or $5.82 per BOE in the three months ended March 31, 2016. While the Company has taken significant steps to reduce overall G&A costs over the past 18 months, with decreases realized in personnel costs, incentive compensation, services and various other cost categories, the reduced drilling activity limits the amount of overhead that VAALCO can recover from its partners. General and administrative expense includes $0.2 million and $0.4 million of non-cash compensation expense for the quarters ended March 31, 2017 and March 31, 2016. Income tax expense for the first quarter of 2017 was $3.2 million compared to $1.7 million for the same period in 2016.  The increase in tax compared to the same period a year ago is primarily attributable to higher revenues from the Company’s operations in Gabon. In order to limit VAALCO’s commodity price risk, in 2016 the Company purchased crude oil puts for part of its 2017 volume. As of March 31, 2017, VAALCO had unexpired crude oil put contracts covering 540,000 barrels of anticipated sales volumes for the period from April 2017 through December 31, 2017 at a weighted average price of $49.63. The Company recorded a non-cash mark-to-market charge of $0.2 million related to the puts during the first quarter of 2017 which was included in other, net in the Condensed Consolidated Statements of Operations. The Company has not entered into additional derivative contracts since March 31, 2017. During the three months ended March 31, 2017, the Company did not undertake any new capital projects. The capital expenditures on a cash basis were $0.8 million primarily for equipment and enhancements. At the end of the first quarter, VAALCO had an unrestricted cash balance of $24.2 million.  This does not include an additional $0.8 million in restricted cash (related primarily to deposits in Gabon) classified as current assets or the additional $0.9 million of restricted cash classified as long term. As previously announced, the Company will hold a conference call to discuss its first quarter financial and operating results tomorrow, Tuesday, May 9, 2017, at 8:00 a.m. Central Time (9:00 a.m. Eastern Time). Interested parties may participate by dialing (844) 841-1668.  International parties may dial (661) 378-9859.  The confirmation code is 16558969.  This call will also be webcast on VAALCO’s website at www.vaalco.com. An audio replay will be available beginning approximately two hours after the end of the call and be available through May 16, 2017 by dialing (855) 859-2056.  International parties may dial (404) 537-3406. The confirmation code is 16558969. 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.  All statements, other than statements of historical facts, included in this document that address activities, events, plans, expectations, objectives or developments that VAALCO expects, believes or anticipates will or may occur in the future are forward-looking statements.  These statements may include amounts due in connection with the Company’s withdrawal from Angola, expected sources of future capital funding and future liquidity, future operating losses, future changes in oil and natural gas prices, future strategic alternatives, capital expenditures, future drilling plans, prospect evaluations, negotiations with governments and third parties including with the government of the Republic of Gabon in connection with a revised production sharing contract, expectations regarding processing facilities, reserve growth, and other issues related to our exit from Angola.  These statements are based on assumptions made by VAALCO based on its experience and 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, oil and gas price volatility, inflation, general economic conditions, the Company's success in discovering, developing and producing reserves, decisions by our current lender or future lenders, the risks associated with liquidity, the risk that our negotiations with the governments of the Republic of Gabon and the Republic of Angola will be unsuccessful, lack of availability of goods, services and capital, environmental risks, drilling risks, foreign regulatory and 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, 2016 and quarterly report on Form 10-Q for the quarter ended March 31, 2017, which will be filed shortly, 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 9800 Richmond Avenue, Suite 700, Houston, Texas 77042, (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. VAALCO Energy, Inc. is a Houston, Texas 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 development and exploitation of international oil and natural gas properties. The Company's properties and exploration acreage are located primarily in Gabon and Equatorial Guinea in West Africa. Adjusted EBITDAX is a supplemental non-GAAP financial measure used by VAALCO’s management and by external users of the Company’s financial statements, such as industry analysts, lenders, rating agencies, investors and others who follow the industry as an indicator of the Company’s ability to internally fund exploration and development activities and to service or incur additional debt. Adjusted EBITDAX is a non-GAAP financial measure and as used herein represents net income before discontinued operations, interest income (expense) net, income tax expense, depletion, depreciation and amortization, impairment of proved properties, exploration expense, non-cash and other items including stock compensation expense and commodity derivative loss. Adjusted EBITDAX has significant limitations, including that it does not reflect the Company’s cash requirements for capital expenditures, contractual commitments, working capital or debt service. Adjusted EBITDAX should not be considered as a substitute for net income (loss), operating income (loss), cash flows from operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP. Adjusted EBITDAX excludes some, but not all, items that affect net income (loss) and operating income (loss) and these measures may vary among other companies. Therefore, the Company’s Adjusted EBITDAX may not be comparable to similarly titled measures used by other companies. The table below reconciles the most directly comparable GAAP financial measures to Adjusted EBITDAX.

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