· |
The
first rig will be used to drill three exploratory wells: an appraisal
well
for possible expansion of the Ebouri development project and two
additional wells on newly mapped structures. These three wells
have gross
reserve potential additions in excess of 60 million barrels (approximately
15 million net barrels to VAALCO).
Drilling on these wells will commence in September 2008 and the
wells will
be drilled back to back.
|
· |
The
second rig will be used to drill development wells at Ebouri. The
rig for
the development wells will arrive in October 2008. This rig is
larger than
the one to be used for the exploration wells, as it must jack up
over the
platform to drill the development wells.
|
Unaudited
- (thousands
of dollars)
|
Three
Months Ended
|
Three
Months Ended
|
|||||
March
31, 2008
|
March
31, 2007
|
||||||
Discretionary
Cash Flow
|
14,506
|
11,192
|
|||||
Working
Capital Changes, net of non-cash
|
(181
|
)
|
(11,192
|
)
|
|||
Net
cash provided by operating activities
|
14,325
|
--
|
Three
Months Ended
March
31,
|
|||||||
2008
|
2007
|
||||||
(Unaudited
- in thousands of dollars)
|
|||||||
|
|||||||
Revenues
|
$
|
42,158
|
$
|
29,131
|
|||
Operating
costs and expenses
|
18,027
|
16,830
|
|||||
Operating
Income
|
24,131
|
12,301
|
|||||
Other
Income
|
115
|
676
|
|||||
Income
tax expense
|
(21,382
|
)
|
(7,192
|
)
|
|||
Loss
from discontinued operations
|
--
|
(27
|
)
|
||||
Minority
Interest in earnings of subsidiaries
|
(1,063
|
)
|
(1,203
|
)
|
|||
Net
Income
|
1,801
|
4,555
|
|||||
Basic
Income per Common Share
|
0.03
|
0.08
|
|||||
Diluted
Income per Common Share
|
0.03
|
0.08
|
Three
Months Ended March 31,
|
|||||||
(Unaudited)
|
2008
|
2007
|
|||||
Net
oil and gas sales (MBOE)
|
446
|
511
|
|||||
Average
price ($/bbl)
|
$
|
94.44
|
$
|
57.03
|
|||
Production
costs ($/bbl)
|
$
|
9.85
|
$
|
8.35
|
|||
Depletion
costs ($/bbl)
|
$
|
11.06
|
$
|
9.13
|
|||
General
and administrative costs ($/bbl)
|
$
|
4.46
|
$
|
5.57
|
|||
Debt/Proved
reserves ($/BOE)
|
$
|
0.87
|
$
|
0.91
|
|||
Capital
Expenditures ($thousands)
|
1,840
|
6,032
|
|||||
Debt/Capitalization
($/$)
|
$
|
0.03
|
$
|
0.04
|
|||
Cash
and cash equivalents ($thousands)
|
79,734
|
54,163
|
|||||
Working
capital ($thousands)
|
89,066
|
65,796
|
|||||
Total
long term debt ($thousands)
|
5,000
|
5,000
|
|||||
Production
Costs
|
4,394
|
4,266
|
|||||
Depletion
|
4,934
|
4,663
|
|||||
G&A
Costs
|
1,987
|
2,845
|
|||||
Debt
|
5,000
|
5,000
|
|||||
Proved
Reserves 1/1/07
|
6,214
|
5,994
|
|||||
Current
Assets
|
111838
|
80258
|
|||||
Current
Liabilities
|
22,772
|
14,462
|
|||||
Capitalization
|
143,077
|
127,547
|
Item
|
Three
months ended
|
||||||
March 31, 2008 |
March
31, 2007
|
||||||
Basic
weighted average common
stock
issued and outstanding
|
59,338,013
|
59,039,674
|
|||||
Dilutive
options
|
363,265
|
1,376,962
|
|||||
Total
diluted shares
|
59,701,278
|
60,416,636
|