VAALCO Energy, Inc. (EGY) announced today that the borrowing base under its revolving credit facility was reaffirmed at the full $65 million level, the maximum capacity provided for under the facility. The redetermination was a result of the regular semi-annual review conducted by the International Finance Corporation (IFC), the lender under the facility. The covenants under the facility remain unchanged, including the removal of the debt to equity covenant that was previously announced in May 2015.
The borrowing base is supported solely by the Company’s Etame Marin producing assets in Gabon. The next scheduled re-determination date is in December 2015. As of March 31, 2015, the Company had $15 million drawn under this facility and no additional borrowings have been made against the facility since that date. The Company believes that its cash balance and cash flow from operations will be more than sufficient to fund its operations and capital budget in 2015. The increase in the borrowing base adds additional financial security.
Steve Guidry, VAALCO’s Chairman and CEO commented, “We are very pleased with the results of our semi-annual credit facility re-determination. Despite the significant downturn in oil prices, our borrowing base was 100% reaffirmed, reflecting the value of our ongoing Etame Marin development program. We value our relationship with the IFC as a financial partner.”
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.