Woes in Africa, including high taxes and a write-down from a partner’s default, shrunk profits at Houston player Vaalco, the company has announced
The company brought in net income of $3.4mn in the three months ending in September on $37.3mn of revenue.
In the year-ago quarter, net income was $13.9mn on $32.6mn of revenue.
Diluted earnings per share were $0.04, compared with $0.22 in the year-ago quarter.
"We remain confident that ongoing negotiations with Angola will result in a favorable renewal of our concession agreement,” chief executive Robert Gerry said in the company’s statement.
“Following the renewal, we expect to purchase additional 3-D seismic in the deeper waters on the block in advance of a drilling campaign.”
Gabon platform modifications
The company sold 324,000 net barrels of oil equivalent in the quarter, a drop compared with 429,000 boe in the year-ago quarter.
Meanwhile, a Hemphill County, Texas well was drilled into the Granite Wash formation and has come online. In September, the company also bought a working interest into 22,000 net acres in Montana's Bakken play.
In Gabon, platform modifications are preceding single and multiple well-drilling campaigns. In Angola, the company saw a partner walk out with a cost to the company of $4.1mn.