Vaalco files $150 million shelf registration to support ‘growth objectives’
Houston-based Vaalco Energy has filed a $150 million shelf registration statement on Form S-3 with the U.S. Securities and Exchange Commission (SEC) to further increase its financial flexibility in support of the pursuit of ‘future growth objectives.’
Vaalco reported the filing of a $150 million shelf registration statement on Thursday, explaining that if and when declared effective by the SEC, the shelf registration statement would allow the firm the flexibility to offer and sell, from time to time, up to $150 million of common stock, preferred stock, depositary shares, warrants and/or units in one or more offerings and in any combination, on a registered basis in the U.S.
George Maxwell, Vaalco’s Chief Executive Officer, remarked:“We believe this shelf registration statement, which is a common practice with other U.S publicly-traded E&P companies, is a prudent proactive move to support our future growth objectives as the filing will provide us increased financial flexibility and more efficient access to the capital markets. We have no immediate plans for the potential issuance of the additional securities listed in the S-3.”
Furthermore, the company added that the specific securities and terms of each such future offering of securities – if any – along with the intended use of any net proceeds therefrom, would be described in a prospectus supplement filed with the SEC at the time of any such offering.
Vaalco further stated that the shelf registration statement – once declared effective by the SEC – would be in effect for three years, or such a shorter period that the securities registered under the shelf registration statement would be issued or sold.
“While we are primarily focused on the continued development of our interests in offshore Gabon, we continue to consider accretive acquisitions aimed at further strengthening Vaalco and growing shareholder value,” added Maxwell.
Regarding the company’s activities offshore Gabon, Vaalco spudded the first well in its new 2021/2022 drilling campaign focused on the Etame field earlier this month, hoping to extend the life of the field by finding more hydrocarbons.
Vaalco’s earlier efforts to add more crude oil to its production included two well workovers at the Etame field, which were completed by early November 2021.