Report on Payments to Governments 2019

RNS Announcement

RNS Number : 7460Q

Vaalco Energy Inc

02 March 2021

VAALCO ENERGY, INC.

REPORT ON PAYMENTS TO GOVERNMENTS FOR THE YEAR 2019

The following report provides an overview of payments made to governments by VAALCO Energy, Inc. and its affiliated companies for the year ending December 31, 2019 as required under the UK Reports on Payments to Government Regulations 2014 and its amendment in December 2015 and DTR 4.3A of the Financial Conduct Authority's Disclosure and Transparency Rules (the "UK Regulations").

Payments to Governments[1]^,[2]

	Angola[3]	Gabon[4]	United States[5]
Income Taxes (bbls)		128,031[6]
Income Taxes (US$)		8,339,825[7]
Dividends
Bonuses
Royalties (bbls)		189,561[8]
Royalties (US$)		12,342,680[9]
License Fees (Surface Rentals, Permitting Fees, Etc. (US$)	7,806,656[10]
Environmental Capacity Buidling & Social Projects
Training
Taxes (Non-Income) (US$)		725,675[11]	2,458,216[12]
Other (US$)		1,837,171[13]

About VAALCO

VAALCO, founded in 1985, is a Houston, USA based, independent energy company with production, development and exploration assets in the West African region. For additional information, please visit www.vaalco.com.

The Company is an established operator within the region, holding a 63.6% participating interest in the Etame Marin block, located offshore Gabon, which to date has produced over 119 million barrels of crude oil and of which the Company is the operator.

For Further Information


VAALCO Energy, Inc. (General and Investor Enquiries)	+00 1 713 623 0801
Website:	www.vaalco.com


Al Petrie Advisors (US Investor Relations)	+00 1 713 543 3422
Al Petrie / Chris Delange

Buchanan (UK Financial PR)	+44 (0) 207 466 5000
Ben Romney / Kelsey Traynor / James Husband	[email protected]

Forward Looking Statements

This document includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, included in this document that address activities, events, plans, expectations, objectives or developments that VAALCO expects, believes or anticipates will or may occur in the future are forward-looking statements. These statements may include statements related to the recent sharp decline in the global demand for and resulting global oversupply of crude oil and the resulting steep decline in oil prices, production quotas imposed by Gabon, wells anticipated to be drilled and placed on production, future levels of drilling and operational activity and associated expectations, the implementation of the Company's business plans and strategy, its ability to restore production in non-producing wells, future operating losses, future changes in crude oil and natural gas prices, future strategic alternatives, future and pending acquisitions, capital expenditures, future drilling plans, timing of the settlement of Gabon income taxes, and expectations regarding processing facilities, production, sales and financial projections. These statements are based on assumptions made by VAALCO based on its experience and perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond VAALCO's control. These risks include, but are not limited to, crude oil and natural gas price volatility, the failure of the transaction to close, the impact of production quotas imposed by Gabon in response to production cuts agreed to as a member of OPEC, inflation, general economic conditions, the outbreak of COVID-19, the Company's success in discovering, developing and producing reserves, production and sales differences due to timing of liftings, decisions by future lenders, the risks associated with liquidity, drilling risks, foreign regulatory and operational risks, and regulatory changes.

Investors are cautioned that forward-looking statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements. VAALCO disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

Inside Information

This announcement contains inside information as defined in Market Abuse (Amendment) (EU Exit) Regulations 2019 ("MAR") and is made in accordance with the Company's obligations under article 17 of MAR.

[1] Payments are reported in US Dollars. Actual payments made in currencies other than US Dollars have been converted.

[2] Pursuant to the UK Regulations, payments or a series of payments that do not exceed £86,000 (US$ 117,962) have not been reported.

[3] All Angola figures are associated with VAALCO Angola (Kwanza), Inc.'s interest in Block 5/06 offshore Angola.

[4] All Gabon figures are associated with VAALCO Gabon SA's interest in the Etame Marin block offshore Gabon.

[5] All United States figures are associated with VAALCO Energy, Inc.'s headquarters.

[6] Represents crude oil barrels provided to the Gabon Oil Company in-kind, in lieu of income tax.

[7] Dollar value calculated using VAALCO Gabon SA's sales price under the terms of its crude oil sales agreement with a third party.

[8] Paid to the Public Treasury in cash for the benefit of the Ministry of Hydrocarbons and Mining.

[9] Dollar value calculated using VAALCO Gabon SA's sales price under the terms of its crude oil sales agreement with a third party.

[10] Payments made pursuant to a Settlement Agreement between VAALCO Angola (Kwanza), Inc. and the Angola National Agency of Petroleum, Gas, and Biofuels ("ANPG") for termination of rights, liabilities and outstanding obligations for Block 5/06 in Angola. This amount consists of US$4,500,000 paid to ANPG and elimination of a US$3,306,656 receivable from Sonangol Pesquisa e Produção.

[11] Consists of both the employer and employee share of various payroll and social security taxes paid to the Public Treasury.

[12] Consists of both the employer and employee shares of various payroll and social security taxes paid to the Federal and State treasuries.

[13] Payments consist of the Domestic Market Obligation ("DMO") (US$1,418,739) and Provision for Investment Diversification ("PID)" / Provision for Investment in Hydrocarbons ("PIH") (US$418,432). Payments for DMO are made in cash to the Public Treasury and PID/PIH is paid directly to providers of goods and services.

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RNS metadata

Title: Report on Payments to Governments 2019
Time: 07:00:02
Date: 2 Mar 2021
Category: Miscellaneous
ID: 7460Q