VAALCO acquires additional interest in Etame Field from Sasol
VAALCO Energy has announced that it has now completed the previously announced acquisition of Sasol Gabon SA’s 27.8% working interest in the Etame Marin block offshore Gabon, increasing the Company’s total working interest to 58.8%.
- Nearly doubles VAALCO’s total net production and reserves;
- Expected to be immediately accretive to VAALCO, with minimal additional variable costs;
- Anticipated to materially increase free cash flow in 2021 and beyond, particularly in the current increasing price environment;
- Paid USD 29.6 million in cash to Sasol, taking into account the agreed upon transaction price of USD 44 million, the deposit already paid and post-effective date adjustments, with a future contingent payment of up to USD 5 million.
- Funded the closing of the acquisition entirely from cash on hand and cash from operations
VAALCO, founded in 1985, is a Houston, USA based, independent energy company with production, development and exploration assets in the West African region. The Company is an established operator within the region, holding a 63.6% participating interest in the Etame Marin block, located offshore Gabon, which to date has produced over 120 million barrels of crude oil and of which the Company is the operator.