(Alliance News) - Vaalco Energy Inc said on Thursday that third-quarter production met guidance in a quarter in which it joined the London Stock Exchange.
Texas-based Vaalco, already listed in New York, began trading in London on September 26, without raising any cash.
Revenue for the three months to September fell 30% to USD17.6 million, and pretax profit narrowed significantly to USD3.8 million from USD16.4 million. This was mainly due to a more than doubling in operating costs and expenses, as well as the lower revenue.
Revenue fell due to a significantly lower oil price during the quarter than the year before.
Production in the quarter averaged 3,081 barrels of oil per day, and Vaalco is on track for a 2019 exit production rate between 3,800 barrels and 4,100 barrels per day.
Highlights for the quarter included the start of drilling at Etame in Gabon, finding oil in both the Gamba and Dentale reservoirs.
"We have built a strong cash position which allows us to execute our share repurchase program and continue to fully fund the ongoing 2019 to 2020 drilling program at Etame from cash on hand and cash from operations," said Chief Executive Cary Bounds.
"We are entering 2020 in a position of strength with positive momentum from our drilling results and remain wholly focused on delivering sustainable and profitable growth that will add meaningful value for our shareholders."
Shares were untraded on Thursday in London, last seen at a price of 157.50 pence each. In New York, Vaalco closed Wednesday at USD2.01.
By George Collard; georgecollard@alliancenews.com
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Vaalco Energy (EGY)