Nanes Delorme Partners I L.P. commented on today’s letter to stockholders from VAALCO Energy, Inc.
“Nanes Delorme Partners, an independent hedge fund with multiple investments, invested in VAALCO because the company is significantly undervalued and has been severely mismanaged. We have always been clear that proactive steps, like a review of strategic alternatives, is necessary to address the issues negatively affecting VAALCO’s stock price because the current management and Board seem unwilling or unable to eliminate the significant valuation gap that exists.
“Today’s letter from the Company to stockholders shows that the incumbent Board and management are resorting to scare tactics and false and misleading statements to distract stockholders from their track-record of disappointing stock performance, poor operational and technical capabilities, unfriendly corporate governance and an overall lack of commitment to enhancing stockholder value.
“If the Company had committed to doing its due diligence, it would have known that Pilatus Energy SA is a privately held Swiss investment company whose business is pursuing either public or private investments directly or indirectly in a variety of oil and gas companies, securities or properties around the world and that Mr. Le Floch-Prigent is not a shareholder, director, appointed officer, nor employee of Pilatus Energy SA. Pilatus Energy SA is one of several limited partners that participate in the returns generated by Nanes Delorme Partners’ variety of investments in public securities, and is not a ‘secret partner’ as VAALCO falsely claims.
“Unlike VAALCO, Nanes Delorme Partners has fully complied with all SEC requirements. VAALCO, however, has violated federal securities laws in the preparation and mailing of its proxy.
“The choice for VAALCO stockholders is simple; they can either support the status quo and underperformance or vote for a minority slate of directors with significant oil and gas industry experience who are committed to corporate governance reforms and maximizing stockholder value.”