VAALCO Energy, Inc. announced the closing of the strategic combination of VAALCO and TransGlobe Energy Corporation (TransGlobe). As previously disclosed, the combined Company will now trade on the NYSE and LSE under the ticker symbol EGY. The combined Company is a leading African-focused operator with a strong production and reserve base, a diverse portfolio of assets in Gabon, Egypt, Equatorial Guinea and Canada, and significant future growth potential. In conjunction with the closing, VAALCO welcomes three new directors to the Board, expanding the Board of Directors to seven directors.

KEY HIGHLIGHTS

   - Enhanced stockholder returns with increased dividend, announced share buyback and potential for special distributions;
     - Targeted annualized dividend of US$0.25 per share, or approximately US$27.3 million(1), for calendar 2023, nearly double VAALCO’s targeted annualized dividend of US$0.13 per share prior to the combination;
     - Planned share buyback program of up to US$30 million, the equivalent of US$0.27 per share(1), to be implemented following yesterday’s closing;
     - Potential to further enhance stockholder distributions through returning excess cash via special distributions;
   - Boosts size and scale through material growth in proved reserves and production volumes;
   - Further enhances VAALCO’s balance sheet with an increased, robust cash position and no net debt;
   - Reduces VAALCO’s overall risk profile through geographic diversification and multiple sources of production;
   - Increases optionality with expanded inventory of high-quality, multi-year investment options;
   - Potential to capture US$30 to US$50 million in synergistic cost savings over the next seven years as a result of the combination that can meaningfully improve margins and enhance future cash flow generation;
   - Immediately accretive to key metrics and significantly increases future Adjusted EBITDAX(2) generation potential;
   - Allows for improved public market valuation multiples based on VAALCO’s significantly enhanced scale and profile post-closing; and
   - Expands the Board of Directors to seven members with the addition of David Cook, Edward LaFehr and Timothy Marchant.

(1) Amount calculated based on VAALCO’s approximately 109.1 million issued and outstanding shares of common stock, par value $0.10 per share, as of October 13, 2022.
(2) Adjusted EBITDAX is a Non-GAAP financial measure.

About VAALCO

VAALCO (NYSE: “EGY”; LSE: “EGY”), founded in 1985 and incorporated under the laws of Delaware, is a Houston, USA based, independent energy company with production, development and exploration assets in Africa and Canada.

Following its business combination with TransGlobe in October 2022, VAALCO owns a diverse portfolio of operated production, development and exploration assets across Gabon, Egypt, Equatorial Guinea and Canada.

About TransGlobe

TransGlobe holds 100% working interests in four Production Sharing Concessions (“PSCs”) in Egypt and holds high working interest assets in the Harmattan area of Western Canada.