VAALCO Files $150MM SEC Shelf Registration Statement
VAALCO Energy Inc. (NYSE, LSE: EGY) has announced the filing of a $150 million shelf registration statement on Form S-3 with the U.S. Securities and Exchange Commission (SEC).
If/when declared effective by the SEC, the statement will allow the company the flexibility to offer and sell, from time to time, up to $150 million of common stock, preferred stock, depositary shares, warrants and/or units in one or more offerings and in any combination, on a registered basis in the U.S., VAALCO outlined.
The company noted that the specific securities and terms of each such future offering of securities, if any, along with the intended use of any net proceeds therefrom, would be described in a prospectus supplement filed with the SEC at the time of any such offering. Once declared effective by the SEC, the statement will be in effect for three years, or such shorter period that the securities registered under the shelf registration statement have been issued or sold, VAALCO stated.
“We believe this shelf registration statement, which is a common practice with other U.S publicly-traded exploration and production companies, is a prudent proactive move to support our future growth objectives as the filing will provide us increased financial flexibility and more efficient access to the capital markets,” George Maxwell, VAALCO’s chief executive officer, said in a company statement.
“We have no immediate plans for the potential issuance of the additional securities listed in the S-3. While we are primarily focused on the continued development of our interests in offshore Gabon, we continue to consider accretive acquisitions aimed at further strengthening VAALCO and growing shareholder value,” Maxwell added in the statement.
In its most recent financial update, VAALCO reported “strong” third quarter net income of $31.7 million, which it said was driven by increased sales, higher realized pricing and a $22.7 million non-cash deferred tax benefit. During the same period last year, the company reported a net income of $7.6 million.
VAALCO is a Houston, Texas, based independent energy company principally engaged in the acquisition, development and production of crude oil. The company’s properties are located primarily in Gabon and Equatorial Guinea in West Africa, its website highlights.
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