VAALCO Energy, Inc. (NYSE: EGY) announced today that its Board of Directors has authorized the repurchase of up to 5.8 million shares of the Company’s common stock, which represents approximately 10% of the Company’s outstanding common stock, in open market transactions from time to time during the upcoming 18-month period and in accordance with the requirements of the Securities and Exchange Commission.
Steve Guidry, VAALCO’s Chairman and CEO, commented, “We are pleased to announce this buyback as it underscores our confidence in the strength of our balance sheet, quality of our assets and our ongoing ability to generate cash flow. At recent market price levels, we believe our common shares represent an excellent opportunity to buy at a significant discount and are a highly attractive investment. We will continue to review additional opportunities to increase shareholder value.”
The share buyback program does not obligate the Company to acquire any specific number of shares in any period, and may be expanded, extended, modified or discontinued at any time. Payment for shares repurchased under the program will be funded using the Company’s cash on hand. At the end of the first quarter, the Company had outstanding approximately 58 million shares of common stock issued and outstanding.
VAALCO Energy, Inc. is a Houston-based independent energy company principally engaged in the acquisition, exploration, development and production of crude oil. VAALCO’s strategy is to increase reserves and production through the exploration and exploitation of oil and natural gas properties with high emphasis on international opportunities. The company’s properties and exploration acreage are located primarily in Gabon, Angola and Equatorial Guinea in West Africa.