PR Newswire
NEW YORK, Oct. 6, 2015
NEW YORK, Oct. 6, 2015 /PRNewswire/ - Bradley Radoff (and related entities) and Group 42, Inc., who together are the beneficial owners of approximately 11.1% of the outstanding shares of Common Stock of VAALCO Energy, Inc. ("VAALCO" or the "Company") (NYSE: EGY), today delivered a letter to the Board of Directors of VAALCO setting forth their concerns regarding, among other things, the Company's corporate governance, particularly the Board's recent adoption of a poison pill, bloated G&A expenses, poor capital allocation, poor decision making with respect to capital expenditures and the renewal of the CEO's employment contract. The full text of the letter is included below:
October 5, 2015
The Board of Directors
VAALCO Energy, Inc.
9800 Richmond Ave., Suite 700
Houston, TX 77042
Board members:
As you know, Bradley Radoff (and related entities) and Group 42, Inc. (together the "Group") collectively own 11.1% of the outstanding common stock of VAALCO Energy (the "Company") in comparison to 1.9% of the Company's outstanding common stock owned by the senior executive officers and you.
Under your stewardship, VAALCO has seen significant shareholder value destruction – a 77% drop in the share price in the past twelve months that exceeds the decline in the price of oil as well as the market price of the Company's peer group. This precipitous and disproportionate decline in stockholder value is an alarming fact that has the Group very concerned as well as determined to take all necessary actions to protect the value of all stockholders' investment in the Company.
Specifically, the Board is accountable for the following:
In summary, shareholders deserve better. Unlike senior management and yourselves, the Group has made a significant investment in VAALCO. We are deeply troubled by the Board's recent actions, and we are prepared to take all actions necessary to ensure that the Board is composed of individuals committed to act in the stockholders' – as opposed to their own – best interests.
Sincerely yours,
/s/ Bradley L. Radoff
Bradley L. Radoff
/s/ Paul A. Bell
Paul A. Bell
Chief Executive Officer and President
Group 42, Inc.
About Bradley L. Radoff:
Bradley L. Radoff is a private investor based in Houston, Texas. Mr. Radoff is the sole shareholder and sole director of the general partner of Fondren Management, LP.
About Group 42, Inc.:
Group 42 is a U.S.-based holding company that delivers innovative energy services to customers around the globe. Through its subsidiaries and international joint ventures, it partners with other multinational energy companies that have expertise in applying technology-oriented solutions. Group 42 operates in North America, Asia Pacific, the Arabian Gulf, West Africa and the North Sea.
Investor Contacts
Amy Miller
Group 42, Inc.
210-863-1921
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SOURCE Group 42
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