Vaalco Energy Share Discussion Threads

[hermana] 08/1/2007 18:40

steel,this Schiller guy delivers and he was very impressive at OB. TOR was in deep conversation with him at the coffee break on prospects of buying production in the Gulf of Mexico.

[steelwatch] 08/1/2007 18:35

JONNO1 - The quoted price is in $ - I'd like to be invested, but no available cash at present worse luck. I tried several dummy buys on-line a while back, but couldn't get a price. My guess is you'd have to phone your broker (and check the dealing fee!).


Energy XXI Reports South Louisiana Discoveries
Energy XXI (Bermuda) Limited Monday, January 08, 2007


Energy XXI (Bermuda) Limited, a rapidly growing independent oil and gas production company currently producing 16,500 barrels of oil equivalent per day ("BOEPD") from its operations in and along the U.S. Gulf of Mexico, announced two discoveries onshore in South Louisiana and provides an update on current and future exploration and development drilling activities, and risk management. The Company also reported the signature of a letter of intent for the acquisition of interests in potentially high-impact exploration acreage in South Louisiana.

High-impact Exploration Update
Energy XXI has participated in four exploration wells in South Louisiana during the second half of 2006, of which three were successful. The two most significant discoveries are:

The Oaks Estate LLC #1 (50% WI) located in Terrebonne Parish, Louisiana, was drilled to 15,789 feet measured depth and logged 454 feet of pay in 12 sands. The Oaks Estate LLC #2 (50% WI), an offset well, has reached total depth and confirmed pay in the offset location. Drilling and production facilities are being installed to handle 40 MMCFPD from the two wells with first production anticipated in March 2007.

As previously announced, the Verda Ragen #1 (50% WI) located in Terrebonne Parish, Louisiana was drilled to a depth of 15,905 feet measured depth and logged 96 feet of net gas pay in two sands. The well has been completed and tested at 3.9 MMCFPD with 10,074 psi flowing tubing pressure. Production facilities are being installed, and first production is projected to be 15 MMCFPD in March 2007.

In addition, the Company has spud two high-potential exploration wells, and expects two additional wells to commence drilling during the next quarter.

The ConocoPhillips-operated Miami Corp. #1 (30% WI), located in St. Mary Parish, Louisiana, and is currently drilling to a proposed depth of 16,745 feet. Six miles to the southwest of this prospect area, the Belle Isle Field has produced over 250 BCFE from the targeted sands.

The SL 18856 #1 well (Barracuda Prospect, 25% WI), located in Terrebonne Parish, Louisiana is currently drilling to test amplitude supported Middle Miocene sands. Barracuda is operated by Energy Partners LTD.

Energy XXI will drill the Rabbit Island Field "J" Prospect (SL 340 #7 well, 52% WI), located in St. Mary Parish, Louisiana to a proposed total depth of 16,500 feet. The "J" Prospect is a significant high-potential test for deep Cip Op horizons beneath a prolific company-operated field.

The Company is participating in the Nexen-operated Cote de Mer Prospect (32.8% WI), located in Vermilion Parish, Louisiana. The initial test well will be drilled to proposed total depth of 20,500 feet. This is a high potential prospect designed to test deep objectives in the prolific Lower Miocene trend, which are analogous to deep production to the north (700 BCFG and 7 MMBC).

AMI Provides Exploration Upside

The Company recently enhanced its exploration portfolio by entering into a letter of intent with Centurion Exploration Company whereby Energy XXI will acquire 50% working interest in the Gridiron Project, which is located in St. Bernard, Plaquemines, and Orleans Parishes in South Louisiana. The joint venture is comprised of eight prospects ranging in objective depths from 10,000' to 21,500'. In addition, Energy XXI will acquire 66.67% interest in Centurion's South Lake Verret Prospect located in St. Martin Parish, Louisiana. This well will be drilled to a depth of 10,100' and will test the Marg A formation. Energy XXI will serve as Operator of the prospects acquired and will operate future prospects developed within the approximate 100,000-acre Area of Mutual Interest (AMI) associated with the Gridiron Project.

"We are very eager to participate with Centurion in the Gridiron Project and the South Lake Verret Prospect; Centurion has proven to be a generator of sound technical projects which we believe, combined with the operational capabilities of Energy XXI, will prove to be a very worthwhile relationship for both companies," said Steve Weyel, President and Chief Operating Officer of Energy XXI.

Additional Drilling Update

At the South Timbalier 21 Field located offshore Gulf of Mexico, where Energy XXI operates with a 100% working interest, a drilling liner has been run to 12,800 feet on the #137 well. An additional 500 feet is left to drill in order to reach the target objectives, the D-14 and D-16 sands. This well will test a seismic amplitude anomaly analogous to the successful #133 well. In addition, the F-1 S/T 1 is presently being completed. The well is an offset to Energy XXI's #131 well, and is a sidetrack from an existing well that will accelerate production from the D-2 sand in the #131 well. Production from an initial workover in ST 21, #87 should be online in mid-January at approximately 700 BOEPD. Additionally, two other workovers have been completed at ST 21, the F3 and #125, which are scheduled to come online mid-January 2007. Estimated combined production from these wells is 925 BOEPD. Two workover rigs are currently operating in the South Timbalier 21 Field.

The SL 340 #224 (100% WI) in the Rabbit Island Field, located in St. Mary Parish, La., was successfully drilled and encountered over 55 feet of net pay in the 9,700' sand. Completion activities are underway with production of 275 BOEPD expected in mid-January. In addition, the SL 340 #223 (100% WI) was successfully drilled and is scheduled to come online mid-January at 200 BOEPD. The SL 340 # 215 (100% WI) was successfully worked-over and is expected to produce 100 BOEPD in early January.

John Schiller, Chairman and CEO of Energy XXI, commented:

"We are delighted that Energy XXI is in a position to make such a positive drilling update to start 2007 with two successes in South Louisiana and a number of additional wells with drilling either underway or commencing shortly."

"Given the extensive exploration, development and appraisal activities planned for the year ahead we believe 2007 should prove to be an exciting year for the Company, as it builds on the successes achieved last year."

Risk Management Update

Energy XXI continues its proactive risk management strategy with incremental material hedge transactions beyond those previously announced. Recent instruments include a crude oil "swap" through December 2008 at $71.50/BBL for 690,000 BBLs, along with a costless "three-way" crude oil collar at $55.00/ $65.00/$72.90 on 801,000 BBLs of reserves through December 2009. This costless "three-way" crude oil collar allows Energy XXI to receive a minimum of $65.00 per barrel unless market prices decline to below $55.00. If the market price of crude oil decreases to below $55.00/BBL, the Company will receive $10.00 above the then crude oil market price. Energy XXI will also benefit from all market price increases to a maximum of $72.90/BBL relating to these hedged volumes.

Additionally, Energy XXI transacted a natural gas costless-collar and a natural gas "three-way" costless-collar. The natural gas costless-collar protects 2.48 BCF of reserves through December 2008 at a minimum price of $8.50/mmBtu. Energy XXI will benefit from all price increases to a maximum of $10.425/mmBtu. The natural gas "three-way" costless collar entered into at $6.00/$8.00/$10.00 protects 6.39 BCF of reserves through December 2009. Energy XXI will receive a minimum of $8.00/mmBtu unless prices decline to below $6.00/mmBtu. If natural gas prices decline to below $6.00/mmBtu, Energy XXI will receive $2.00/mmBtu above the then market price of natural gas. Energy XXI will also benefit from all price increases to a maximum of $10.00/mmBtu relating to these hedged volumes.

As of January 3rd market close and since commencement of operations, the Company has received $23.3 million of hedge gains and the mark-to-market value of all remaining hedge positions currently held by Energy XXI is $56.9 million.

[jonno1] 08/1/2007 10:52

just seen the RNS, thought i'd havea look here...is this not good news, not seeing any trades, whats the buzz with this stock?, never heard of it before

[hermana] 14/12/2006 19:20

steel,nice thread and a co. to watch in 2007.

[kvkwn] 03/12/2006 03:48

A great growth company.

Next year will be another spectacular upside year for profit.

[hermana] 24/11/2006 18:24

Very good pres. from CEO yesterday at Oilbarrel Conference.

[appassaw] 04/10/2006 19:00

Highlights



Operational

* Production currently averaging 18,000 barrels of oil equivalent per day ("
boepd") from a zero base at the foundation of the business, generating
$US300 million of annualized cashflow at current oil prices
* Gross production from South Timbalier 21 Field has increased 60% since the
acquisition in April to 11,700 boepd. This represents the highest
production rate in the last 20 years from the field
* Built up exploitable 210,000 net acre reserve base in mature, large and
high quality producing fields
* Restored all operated production from fields damaged by the hurricanes in
2005 making significant improvements to historical production infrastructure
* Drilled three successful, operated wells during the last quarter of the
financial year ended 30 June 2006
* Currently have six rigs under contract on our significant properties



Financial

o October 2005 US$300 million IPO as a Special Purpose Acquisition
Corporation ("SPAC")

o The Company has since made two substantial acquisitions:

o Marlin Energy for US$421 million, through a "reverse takeover";
following Shareholder approval, the acquisition closed in April 2006

o Private Seller properties in the U.S. Louisiana Gulf Coast both onshore
and in state waters for US$308 million; acquisition completed on 28 July 2006,
post the financial year end

o Raised an additional US$85.6 million in equity from early warrant
exercise to help fund the Private Seller acquisition

o Operating cash flow (Operating income + DD&A) of US$31.9 million and net
income of US$6.9 million for the year ended 30 June 2006 (operating cash flow of
US$33.7 million and net income of US$5.5 million for the 4th quarter reflecting
the acquisition of operations from Marlin Energy)

o Added 51 million barrels of oil equivalent (mmboe) in 2P reserves
through acquisition at a cost of $14.35 per boe. Proved reserves acquired were
40 mmboe



Outlook

* 40% growth in production from Q4 FY2006 expected for Q1 FY2007
* Filing of Form 10 with the U.S. Securities and Exchange Commission to
initiate the proposed dual listing of Energy XXI's common shares both on the
AIM market of the London Stock Exchange and a senior U.S. exchange
* US$250 million exploration and development programme underway for the
financial year 2007
* Energy XXI will continue its aggressive acquisition strategy, targeting
assets in production and development with a geographical focus on offshore
reserves around the world



John Schiller, Chairman and Chief Executive Officer, commented:

"We founded Energy XXI in 2005 with the express purpose of rapidly building a
significant portfolio of producing assets with an exploitable reserve base. In
just one fiscal year, management has successfully delivered on this strategy
providing the Company with a strong operational base from which to grow.



"Current production averaging 18,000 boepd delivers strong cash flow for
redeployment. Our 2007 exploration and development drilling programme will
complement our efforts to identify additional strategic acquisitions as we build
Energy XXI into a leading independent operator. By implementing production
enhancement and reservoir optimization, Company engineers are delivering to our
strategy of maximizing reserves and production by fully exploiting our asset
base.



"Within less than a year since listing, Energy XXI has established itself as one
of the top-ten oil and gas producers listed in London on both AIM and the Full
List. We have ambitious plans to continue this growth record organically and
through acquisition".



28 September 2006



Enquiries of the Company:

[appassaw] 04/10/2006 13:55

Aritlce found here

[mdchand] 22/2/2006 09:41

incase anyone still follows these.........

Energy XXI - Acquisition Corporation (Bermuda) Limited floated on AIM in October 2005 (AIM: EGY) and is the first UK-listed Special Purpose Acquisition Corporation (SPAC) to make an acquisition and draw down the money raised and placed in the irrevocable Trust at the time of flotation. Energy XXI was formed with a proven management team to maximise returns to shareholders through the global acquisition, exploitation and optimisation of producing energy assets and companies.



Analysis


Energy XXI is very much a low risk E&P oil investment opportunity, not pursuing high risk speculative greenfield exploration activity. Instead Energy XXI's strategy is pursuit of short-life, stable producing assets, which allows immediate access to cash flow and the ability to financially leverage and substantially hedge returns, a particularly attractive model in today's energy pricing environment.



This approach is fully reflected in the Group's first acquisition, agreement with Marlin Energy, L.L.C. to acquire 100% of the membership interests in Marlin Energy Offshore, L.L.C. and Marlin Texas GP, L.L.C. and the limited partner interest in Marlin Texas, L.P. (collectively, the "Marlin Entities"). Energy XXI is paying US$421.1m to acquire the Marlin Entities. Following financing which is going into place on this deal, the Group will be left with further facilities of US$60m, providing opportunity for further acquisition or development in due course.

The Marlin Entities to be acquired have interests in various oil and gas properties located on the Outer Continental Shelf in shallow waters of the U.S. Gulf of Mexico ("GOM") and onshore the U.S. Gulf Coast. These properties fit the Group's short reserve life orientated strategy. At present the proven reserves acquired are on the order of 26 million BOE. There are multiple opportunities for increasing the Group's reserves. At the acquisition price of c.US$16.2 per proven barrel, the price Energy XXI is paying is attractive to recent US Gulf of Mexico transactions.



The assets being acquired produced 2.9mmboe in the eleven months to November 2005 (a period materially impacted by hurricanes – as of today the majority of these wells have returned to "production") and revenue in the eleven months was US$155m and proforma EBITDA was $107m.



The asset parcel Energy XXI is acquiring is a relatively low risk, established producing portfolio, with substantial exploitation upside developed by an established management team which is well known to Energy XXI management.



Approximately sixty percent of the proven reserves are oil and seventy percent of are operated, which suits the Energy XXI model of actively seeking operatorship of short life reserves and accelerating value. Production from the assets being acquired before the two hurricanes last season was running at 11.8mboe per day (which would annualise at gross cash of US$280m per annum at $65 per barrel oil) and by the end of this year we are looking at daily production of over 11.6mboe (in January, production was 10.8mboe per day). We anticipate that production will peak at over 14mboepd in 2008.



In terms of reserve split, exactly two-thirds of proven barrelage is in the South Timbalier 21 field, which has produced over 300mmboe in its life to date. At South Timbalier the intention is to drill a further 4 development wells this year and additionally facilitate 4 redrills for wells which were suspended due to hurricanes. We anticipate that average production from the ST21 field for 2006 will be in the order of 5.9mboepd, increasing all the time towards pre-hurricane levels of over 7mboepd.



On an unrisked basis we believe that the proven assets being acquired will produce total end-of-life operating cash flow of around three times their acquisition cost, assuming the current oil price environment is maintained. Using a 10% discount rate, Netherland Sewell's estimate of current value of the properties approximates US$700m, or upside of roughly two-thirds from the purchase price.



As Energy XXI's management team successfully exploit these assets and begin to develop the Group into a leading mid-tier E&P company, we believe that the shares will reflect the significant prospects ahead for the company, rather than current valuation at close to the 'near-cash' value. The effect of financial leverage also substantially offers enhanced returns for shareholders in the longer term. Given attractive strip prices, there is considerable certainty that the Group can lock into the high oil price environment for a significant proportion of its production.



Action


This isn't the end game for Energy XXI. It is just the start of the company's development strategy. This transaction leaves Energy XXI conservatively geared. The SPAC structure also conveniently gives a further US$500m of potential equity through the exercise of warrants, which given that Energy XXI is effectively 'de-SPAC'-ing and becoming a fully-fledged medium sized E&P player, is likely to become a feature of the Group's capital structure going forward.



Energy XXI's ordinary shares and warrants have been suspended until the reverse takeover document has been posted. On this date we will initiate full forecasts following the acquisition completion. It is our belief, however, that there is considerable upside in the shares when they return from suspension.

[logica2me] 02/10/2004 15:25

If you'd bought PET when I said you would have made thousands mate......

[responsible lad] 01/10/2004 22:10

I am fed up with seeing all the rises this month in Energy stocks. There really bad for me considering I try hard gambling on shares using credit that I do not have any money for if my deals go wrong, in which they always do. Then I end up in more debt and I then do not get why I am loosing when I see Energy stocks of companys that I have followed for 8 years. Why Im I not buying into them, when I know them all really well.

I have decieded to throw the key in and never spend a penny again and only on investments using my own cash once every 2 months.


A very frustrated Stephen Lempriere