VAALCO Energy, Inc. (NYSE:EGY) Files An 8-K Other EventsItem 8.01 Other Events.
On June 14, 2018, VAALCO Energy, Inc. (the “Company”), entered into Brent crude oil swaps to an International Swaps and Derivatives Association (“ISDA”) Master Agreement with a major energy company counterparty. The swaps have a total fixed notional volume of approximately 400,000 barrels at a dated Brent weighted average price of $74.00 per barrel for the 13 month period from June 2018 to June 2019. The ISDA, together with its related schedules, contain customary representations and warranties and covenants. The hedging arrangement may be terminated prior to its expiration.
The hedging agreement was entered into to mitigate the oil price volatility risk and enhance the certainty of future revenues and are not for trading purposes.The Company will account for financial commodity derivative contracts using the mark-to-market accounting method.
The Company issued a press release announcing the hedges and completion of a portion of the previously announced workover program. A copy of the Company’s press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.
The information in this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, and is not incorporated by reference into any filing under the Exchange Act or the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.
VAALCO ENERGY INC /DE/ ExhibitEX-99.1 2 egy-20180619xex99_1.htm EX-99.1 Exhibit 991 Exhibit 99.1 VAALCO ENERGY,…To view the full exhibit click
About VAALCO Energy, Inc. (NYSE:EGY)
VAALCO Energy, Inc. is an independent energy company. The Company is engaged in the acquisition, exploration, development and production of crude oil and natural gas. Its segments include Gabon, Angola, Equatorial Guinea, the United States, and Corporate and other, which includes corporate and operations support. It owns producing properties and conducts exploration activities as an operator in Gabon, West Africa; conducts exploration activities as an operator in Angola, West Africa, and participates in exploration and development activities as a non-operator in Equatorial Guinea, West Africa. In the United States, it operates unconventional resource properties in North Texas and hold undeveloped leasehold acreage in Montana. It also owns minor interests in conventional production activities as a non-operator in the United States. Its Etame Marin block is located offshore the Republic of Gabon. It owns over 640-acre lease in the Hefley field (Granite Wash formation) in North Texas.