VAALCO Energy's Q4 2024: Key Contradictions in FPSO Refurbishment, Drilling Plans, and Cost Recovery

These are the key contradictions discussed in VAALCO Energy's latest 2024Q4 earnings call, specifically including: FPSO refurbishment timeline and costs, drilling campaign in Cote d'Ivoire, and impact of FPSO refurbishment on production:



Record Financial and Operational Performance:
- VAALCO Energy reported a record adjusted EBITDAX of $303 million for the full year 2024, which was a new company record.
- The company also achieved record production at almost 25,000 barrels of oil equivalent per day.
- This performance was driven by operational excellence, consistent production, and successful inorganic growth initiatives.

Reserve Growth and Acquisition Impact:
- VAALCO's SEC proved reserves grew by 57% year-over-year to 45 million BOE, with a 2P CPR reserve estimate increasing to 96.1 million BOE.
- The significant reserve growth was due to the acquisition of the Svenska assets in Cote d'Ivoire and positive reserve revisions from drilling results in Egypt and Canada.

Investment in Cote d'Ivoire:
- The company invested $3 million to acquire a 70% working interest in the new CI-705 block in Cote d'Ivoire.
- The investment is driven by the block's favorable location in a proven hydrocarbon system with access to a strong domestic market and attractive upside potential.

Capital Expenditure and Drilling Programs:
- VAALCO's 2025 capital spend is projected to be between $270 million and $330 million, focusing on drilling programs in Gabon, Egypt, and Cote d'Ivoire.
- The significant investment is aimed at offsetting decline, enhancing production, and supporting future growth opportunities across its diverse asset portfolio.