{"id":12266,"date":"2022-05-18T10:24:38","date_gmt":"2022-05-18T10:24:38","guid":{"rendered":"https:\/\/www.oilnewskenya.com\/?p=12266"},"modified":"2022-05-18T10:24:38","modified_gmt":"2022-05-18T10:24:38","slug":"vaalco-energy-receives-new-five-year-50-million-reserve-based-lending-facility","status":"publish","type":"post","link":"https:\/\/www.oilnewskenya.com\/index.php\/vaalco-energy-receives-new-five-year-50-million-reserve-based-lending-facility\/","title":{"rendered":"VAALCO Energy Receives New Five Year, $50 Million Reserve Based Lending Facility"},"content":{"rendered":"<p>VAALCO Energy has announced entry into a new credit agreement, effective May 16, 2022, for a new five-year Reserve Based Lending facility with Glencore Energy UK Ltd.\u00a0 that includes an initial commitment of $50 million and is expandable up to $100 million.<\/p>\n<p align=\"justify\"><strong>Highlights<\/strong><\/p>\n<ul type=\"disc\">\n<li>Significantly improves financial flexibility providing optionality to achieve accretive growth;\n<ul type=\"circle\">\n<li>Provides access to cash if required for potential future development programs;<\/li>\n<li>Enhances financial optionality for funding inorganic acquisition opportunities;<\/li>\n<li>Further strengthens financial position;\n<ul type=\"square\">\n<li>Forecasted 2022 capital program remains fully funded;<\/li>\n<li>Affords the optionality to accelerate development opportunities at Etame; and<\/li>\n<li>As part of the agreement, Glencore will provide crude oil marketing.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<li>Bolsters VAALCO\u2019s strong, debt-free balance sheet and growing cash position with a low-cost facility;\n<ul type=\"circle\">\n<li>Facility size is $50 million with ability to expand up to $100 million at LIBOR plus 6%;<\/li>\n<li>Facility matures in 2027;<\/li>\n<li>Key terms and covenants under the new facility include net debt to EBITDAX of less than three times and requires VAALCO to maintain a minimum cash balance of $10 million; and<\/li>\n<li>Secured by Etame assets, demonstrating the strength and quality of VAALCO\u2019s flagship asset.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p align=\"justify\">George Maxwell, VAALCO\u2019s Chief Executive Officer, commented, &#8220;We have taken the opportunity to enhance our financial flexibility at a favorable time, with sustained higher pricing, strong cash flow generation and no imminent need to use the new facility. By negotiating the facility at a time of strength, it allowed us the opportunity to obtain a low-cost debt option as compared to our peer group. We continue to forecast all current capital commitments for 2022 related to the drilling program, FSO and field reconfiguration will be covered by cash on hand and cash from operations. This new credit facility provides dry powder for future opportunities and could reduce our overall cost of capital by providing immediate access to funds at a low rate, if required. It enhances our opportunity set and allows us to continue to focus on our strategy to build meaningful size and scale to deliver future accretive growth. We are excited about the future for VAALCO with the continued development of our interests in offshore Gabon, upside opportunities in Equatorial Guinea and the potential to integrate accretive acquisitions aimed at further strengthening VAALCO and growing shareholder value.&#8221;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>VAALCO Energy has announced entry into a new credit agreement, effective May 16, 2022, for a new five-year Reserve Based Lending facility with Glencore Energy UK Ltd.\u00a0 that includes an &hellip; <a href=\"https:\/\/www.oilnewskenya.com\/index.php\/vaalco-energy-receives-new-five-year-50-million-reserve-based-lending-facility\/\" class=\"more-link\">Read More<\/a><\/p>\n","protected":false},"author":24,"featured_media":12190,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[7447,7442,11],"tags":[789,8952,10498,8731],"class_list":["post-12266","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-central-africa","category-countries","category-top-news","tag-equatorial-guinea","tag-etame","tag-glencore-energy","tag-vaalco-energy","entry"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2022\/04\/GABON-ETAME.jpg?fit=376%2C485&ssl=1","jetpack_shortlink":"https:\/\/wp.me\/p5JWkQ-3bQ","jetpack-related-posts":[{"id":10812,"url":"https:\/\/www.oilnewskenya.com\/index.php\/gabon-vaalco-announces-binding-loi-for-fso-at-etame\/","url_meta":{"origin":12266,"position":0},"title":"GABON: VAALCO Announces Binding LoI for FSO at Etame","author":"","date":"August 26, 2021","format":false,"excerpt":"VAALCO Energy has signed a binding letter of intent with World Carrier Offshore Services Corp.\u00a0 to provide and operate a Floating Storage and Offloading (FSO) unit at VAALCO\u2019s Etame Marin field offshore Gabon for up to eight years with additional option periods available upon the expiration of the current Floating\u2026","rel":"","context":"In &quot;Countries&quot;","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/10\/GABON-ETAME.jpg?fit=376%2C485&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":11941,"url":"https:\/\/www.oilnewskenya.com\/index.php\/gabon-vaalco-energy-provides-update-on-etame-field-reconfiguration-and-fso-deployment\/","url_meta":{"origin":12266,"position":1},"title":"GABON: VAALCO Energy Provides Update on Etame Field Reconfiguration and FSO Deployment","author":"","date":"March 1, 2022","format":false,"excerpt":"VAALCO Energy has provided an update on the Etame field reconfiguration in conjunction with the replacement of the existing Floating Production, Storage and Offloading unit (FPSO) with a Floating Storage and Offloading vessel (FSO) offshore Gabon. VAALCO anticipates that all of the associated engineering, long-lead equipment and significant contracts are\u2026","rel":"","context":"In &quot;Countries&quot;","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/10\/GABON-ETAME.jpg?fit=376%2C485&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":9432,"url":"https:\/\/www.oilnewskenya.com\/index.php\/gabon-vaalco-acquires-additional-working-interest-at-etame-marin-block\/","url_meta":{"origin":12266,"position":2},"title":"GABON: VAALCO  Acquires Additional Working Interest at Etame Marin Block","author":"","date":"November 19, 2020","format":false,"excerpt":"Highlights \u2022 Acquiring an additional 27.8% working interest in the Etame Marin block offshore Gabon, increasing VAALCO\u2019s total working interest to 58.8%; \u2022 Nearly doubles VAALCO\u2019s total net production and reserves; \u2022 Increases net revenue interest (\u201cNRI\u201d) production from 4,850 to 9,150 barrels of oil per day (\u201cBOPD\u201d) based on\u2026","rel":"","context":"In &quot;Central Africa&quot;","block_context":{"text":"Central Africa","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/central-africa\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/10\/GABON-ETAME.jpg?fit=376%2C485&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":12139,"url":"https:\/\/www.oilnewskenya.com\/index.php\/gabon-vaalco-energy-announces-successful-drilling-of-avouma-3h-st-development-well\/","url_meta":{"origin":12266,"position":3},"title":"GABON: VAALCO Energy Announces Successful Drilling of Avouma 3H-ST Development Well","author":"","date":"April 11, 2022","format":false,"excerpt":"VAALCO Energy has\u00a0announced the successful drilling of the Avouma 3H-ST development well that was drilled from the Avouma platform in the Etame field, offshore Gabon. Highlights Successfully drilled the Avouma 3H-ST development well with a lateral of 268 meters in high-quality Gamba sands at the top of the structure; Encountered\u2026","rel":"","context":"In &quot;Countries&quot;","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":10012,"url":"https:\/\/www.oilnewskenya.com\/index.php\/vaalco-closes-the-acquisition-of-additional-interest-in-the-etame-field-from-sasol\/","url_meta":{"origin":12266,"position":4},"title":"GABON: VAALCO Closes the Acquisition of Additional Interest in the Etame Field From Sasol","author":"","date":"March 1, 2021","format":false,"excerpt":"Key Highlights Nearly doubles VAALCO\u2019s total net production and reserves; Expected to be immediately accretive to VAALCO, with minimal additional variable costs; Anticipated to materially increase free cash flow\u00a0in 2021 and beyond, particularly in the current increasing price environment; Paid $29.6 million in cash to Sasol, taking into account the\u2026","rel":"","context":"In &quot;Countries&quot;","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/10\/GABON-ETAME.jpg?fit=376%2C485&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":15664,"url":"https:\/\/www.oilnewskenya.com\/index.php\/gabon-vaalco-energy-provides-operational-update-on-offshore-drilling-program\/","url_meta":{"origin":12266,"position":5},"title":"GABON: VAALCO Energy Provides Operational Update on Offshore Drilling Program","author":"Samuel Kamau Mbote","date":"March 12, 2026","format":false,"excerpt":"VAALCO Energy has provided an operational update on its Phase Three Drilling Program offshore Gabon. Vaalco has completed drilling the Etame West ET-14P exploration well. While the well encountered 10 meters of high-quality Gamba sands, in line with pre-drill predictions, the target zone was water-bearing. The lower portion of the\u2026","rel":"","context":"In \"ET-14H\"","block_context":{"text":"ET-14H","link":"https:\/\/www.oilnewskenya.com\/index.php\/tag\/et-14h\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2022\/04\/GABON-ETAME.jpg?fit=376%2C485&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]}],"jetpack_sharing_enabled":true,"jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/12266","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/users\/24"}],"replies":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/comments?post=12266"}],"version-history":[{"count":1,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/12266\/revisions"}],"predecessor-version":[{"id":12267,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/12266\/revisions\/12267"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/media\/12190"}],"wp:attachment":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/media?parent=12266"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/categories?post=12266"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/tags?post=12266"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}