16th Oct 2023 09:18
(Alliance News) - Vaalco Energy Inc on Monday said it more than doubled its cash balance in the third quarter, with production and sales volumes at the higher end of its target ranges.
The Canada and Africa-focused hydrocarbon explorer said "robust production and sales volumes" in the third quarter of 2023 were driven by a strong operational performance in Gabon, Canada and Egypt.
Houston, Texas-based Vaalco said it produced just under 19,000 net revenue interest barrels of oil equivalent per day during the quarter. Guidance for the period had predicted 17,500 to 19,200 barrels.
Vaalco also recorded sales volumes of nearly 19,900 NRI barrels, having previously forecast between 18,400 and 20,600 for the quarter.
The firm subsequently completed an additional crude sales lifting of approximately 600,000 gross barrels of oil in Gabon during the first week of October, which Chief Executive Officer George Maxwell said "will add to our healthy cash position".
Vaalco said its cash and equivalents exceeded USD100 million at September 30, more than double its balance at June 30.
"We expect our ability to grow cash flow in the current high commodity price environment to continue through year-end," Maxwell commented. "This robust cash reserve will allow us to fund our 2024 capital program, continue to return cash to shareholders through dividends and buybacks and provides meaningful financial optionality for the future."
He added that since its acquisition of TransGlobe Energy Corp in October last year, "we have focused on returning cash to shareholders, generating meaningful cash flow, maintaining and growing our production base, evaluating a larger portfolio of opportunities across multiple countries and continuing to drill our prospects.
"We continue to not only deliver on all of these accounts, but we have also exceeded expectations while building size and scale for the future."
Shares in Vaalco were untraded at 330.00 pence on Monday morning in London. They last traded on Friday.
By Emma Curzon, Alliance News reporter
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