VAALCO Energy 2007 Results Reflect Growth in Revenues
VAALCO Energy, Inc. announced higher revenues in 2007 compared with 2006, although net income was affected by an increased depletion rate, a higher effective income tax rate and a dry hole cost.
The Company said its total oil and gas sales for the year ended December 31, 2007 were $125.0 million, up 27% from $98.3 million in 2006. Operating income for the year was $68.7 million, down 8% from $74.3 million in 2006. Net income for 2007 decreased to $19.1 million, or $0.32 per diluted share, from $40.3 million, or $0.67 per diluted share in 2006. In 2007, net income included a pre-tax charge of $8.1 million for an unsuccessful well in the North Sea.
Depletion costs for 2007 were higher due to higher depletion rates at the Avouma and South Tchibala fields in the Etame concession, which commenced production in January 2007. Income taxes increased $11.4 million, primarily due to higher commodity prices and increased production.
Robert L. Gerry, III, Chairman and CEO, stated, "VAALCO continues to pursue its strategy to add proved reserves, revenues and maintain strong cash flow, through accelerated exploration and production from our Etame properties offshore Gabon and our other high potential properties including onshore Gabon and offshore Angola."
VAALCO sold 1,759,000 net barrels of oil equivalent at an average price of $71.16 per barrel during 2007, compared with 1,554,000 barrels of oil equivalent at an average price of $63.26 in 2006. It ended 2007 with 6.2 million barrels of total proved reserves, up from 6.0 million barrels at year-end 2006. Total proved plus probable reserves were 10.4 million barrels at year-end 2007.
"The replacement of reserves in 2007 reflects the continued performance of our fields on the Etame concession and the positive impact of higher oil prices," Gerry said.
- Blockchain Demands Attention in Oil and Gas
- Macquarie Sees USA Oil Production Exiting 2024 at 14MM Barrels Per Day
- Oman Sees Increasing Ship-to-Ship Transfers of Russian Oil Bound for India
- CNPC Opens Sea-Land Oil Storage and Transport Facility in Bangladesh
- US Govt Makes Record Investment of $6B for Industrial Decarbonization
- Perenco Still Searching for Missing Person After Platform Incident
- Eni, Fincantieri, RINA Ink Deal on Maritime Decarbonization
- Falcon Oil Declares Commercial Flow Test Results for Shenandoah Well
- Oil Falls as US Inventories Increase
- Czech Utility CEZ Bucks Weaker Prices, Demand to Log Record Annual Profit
- Equinor Makes Discovery in North Sea
- Standard Chartered Reiterates $94 Brent Call
- India Halts Russia Oil Supplies From Sanctioned Tanker Giant
- Centcom, Dryad Outline Recent Moves Around Red Sea Region
- DOI Announces Proposal for Second GOM Offshore Wind Auction
- PetroChina Set to Receive Venezuelan Oil
- Czech Conglomerate to Buy Major Stake in Gasnet for $917MM
- US DOE Offers $44MM in Funding to Boost Clean Power Distribution
- Oil Settles Lower as Stronger Dollar Offsets Tighter Market
- UK Grid Operator Receives Aid to Advance Rural Decarbonization
- Chinese Mega Company Makes Major Oilfield Discovery
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Another Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Vessel Sinks in Red Sea After Missile Strike
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension
- Equinor Makes Discovery in North Sea
- Standard Chartered Reiterates $94 Brent Call