THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION

VAALCO ENERGY, INC. PROVIDES FOURTH QUARTER 2022 GUIDANCE IN UPDATED PRESENTATION

HOUSTON - November 11, 2022 - VAALCO Energy, Inc. (NYSE: EGY; LSE: EGY) ("VAALCO" or the "Company") announced that, further to the Q3 2022 Results issued on November, 9, 2022, the Company has posted a presentation on its website containing fourth quarter 2022 guidance as well as additional information regarding its third quarter 2022 results and recent key highlights.  

Q4 2022 Production and Cost Guidance

With the completion of the acquisition of TransGlobe Energy Corporation ("TransGlobe") on October 13, 2022, VAALCO has incorporated all assets and costs into its combined Q4 2022 guidance. Fourth quarter 2022 production guidance is expected to be between 13,900 and 16,300 net revenue interest ("NRI") barrels of oil equivalent per day ("BOEPD"). The Company highlights that, due to completion timing of the merger, Q4 guidance includes the contribution for the TransGlobe assets for only half of the month of October.

In terms of production by asset, the Company is expecting Gabon to be between 6,400 and 7,600 NRI BOEPD, Egypt to be between 5,300 and 6,000 NRI BOEPD and Canada to be between 2,200 and 2,700 NRI BOEPD.

VAALCO's sales guidance is in line with production, but slightly higher at between 14,500 and 16,700 NRI BOEPD.

The Company expects production expense for the quarter, excluding workover and stock compensation to be between $23.50 and $27.50 on an NRI per BOE basis. Capital expenditure for the quarter is forecasted between $34 and $50 million of investment. This includes the drilling program in Canada and Egypt as well as the completion of the drilling campaign at Etame.

Workovers during the period are budgeted to cost between $5 and $7 million. VAALCO's cash G&A for the combined Company is expected to be between $3.5 and $5.0 million. 

The Company is currently engaged in its 2023 budget process, and is beginning to identify additional synergistic cost saving opportunities that will be incorporated into 2023 guidance, which will be provided in the first quarter of 2023.

About VAALCO

VAALCO, founded in 1985 and incorporated under the laws of Delaware, is a Houston, USA based, independent energy company with production, development and exploration assets in Africa and Canada.

Following its business combination with TransGlobe in October 2022, VAALCO owns a diverse portfolio of operated production, development and exploration assets across Gabon, Egypt, Equatorial Guinea and Canada.

For Further Information

Forward Looking Statements

This press release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act") and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created by those laws and other applicable laws and "forward-looking information" within the meaning of applicable Canadian securities laws. Where a forward-looking statement expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. All statements other than statements of historical fact may be forward-looking statements. The words "anticipate," "believe," "estimate," "expect," "intend," "forecast," "outlook," "aim," "target," "will," "could," "should," "may," "likely," "plan" and "probably" or similar words may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements in this press release include, but are not limited to, statements relating to (i) VAALCO's ability to realize the anticipated benefits and synergies expected from the business combination with TransGlobe; (ii) estimates of future drilling, production and sales of crude oil and natural gas; (iii) estimates of future cost reductions, synergies, including pre-tax synergies, savings and efficiencies; (iv) expectations regarding VAALCO's ability to effectively integrate assets and properties it acquired as a result of the business combination with TransGlobe into its operations; (v) expectations regarding future exploration and the development, growth and potential of the combined company's operations, project pipeline and investments, and schedule and anticipated benefits to be derived therefrom; (vi) expectations regarding future investments or divestitures; ; and (vii) VAALCO's ability to finalize documents and effectively execute the POD for the Venus development in Block P.

Such forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by the forward-looking statements. These risks and uncertainties include, but are not limited to: risks relating to any unforeseen liabilities of VAALCO or TransGlobe; the tax treatment of the business combination with TransGlobe in the United States and Canada; declines in oil or natural gas prices; the level of success in exploration, development and production activities; adverse weather conditions that may negatively impact development or production activities; the right of host governments in countries where we operate to expropriate property and terminate contracts (including the Etame PSC and the Block P PSC) for reasons of public interest, subject to reasonable compensation, determinable by the respective government in its discretion; the timing and costs of exploration and development expenditures; inaccuracies of reserve estimates or assumptions underlying them; revisions to reserve estimates as a result of changes in commodity prices; impacts to financial statements as a result of impairment write-downs; the ability to generate cash flows that, along with cash on hand, will be sufficient to support operations and cash requirements; the ability to attract capital or obtain debt financing arrangements; currency exchange rates and regulations; actions by joint venture co-owners; hedging decisions, including whether or not to enter into derivative financial instruments; international, federal and state initiatives relating to the regulation of hydraulic fracturing; failure of asses to yield oil or gas in commercially viable quantities; uninsured or underinsured losses resulting from oil and gas operations; inability to access oil and gas markets due to market conditions or operational impediments; the impact and costs of compliance with laws and regulations governing oil and gas operations; the ability to replace oil and natural gas reserves; any loss of senior management or technical personnel; competition in the oil and gas industry; the risk that the business combination with TransGlobe may not increase VAALCO's relevance to investors in the international E&P industry, increase capital market access through scale and diversification or provide liquidity benefits for stockholders; and other risks described under the caption "Risk Factors" in VAALCO's 2021 Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (the "SEC") on March 11, 2022, VAALCO's Quarterly Reports on Form 10-Q filed with the SEC on August 10, 2022 and November 8, 2022  and in VAALCO's Definitive Proxy Statement on Schedule 14A filed with the SEC on August 30, 2022.

Inside Information

This announcement contains inside information as defined in Regulation (EU) No. 596/2014 on market abuse which is part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR") and is made in accordance with the Company's obligations under article 17 of MAR. The person responsible for arranging the release of this announcement on behalf of VAALCO is Matthew Powers, Corporate Secretary of VAALCO.