Borrowing base lowered at VAALCO Energy Inc.
VAALCO is an independent energy company based out of Houston, Texas. Much of its oil comes from Gabon, Angola and Equatorial Guinea -- all of which are located in West Africa.
Though VAALCO's borrowing base had been set at $20.1 million in December 2015, that amount has since been redefined due to the decrease in oil prices.
The International Finance Corporation recently made it clear that if VAALCO pursues more drawdowns before the borrowing base is able to be redetermined, an interim redetermination may take place, ending in a lower borrowing base that would directly correlate to the reduction in commodity prices from December 2015.
"The significant downturn in oil prices was the primary reason that the IFC decided to lower our borrowing base," Steve Guidry, CEO of VAALCO, said, "We are actively exploring a variety of options to supplement VAALCO's potential liquidity needs in conjunction with our strategic alternatives review process announced January 26, 2016."