Vaalco Energy Inc. (NYSE:EGY) is a Magic Formula stock that offers low downside risk with their production and reserves in offshore Gabon and offers asymmetric upside with their prospects in Angola. There is also potential in their new Block P in Equatorial Guinea as well as their onshore Gabon Mutumba Iroru Permit, but I am going to ignore those assets for purposes of keeping this article simple. Let's look at the downside protection first.
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