VAALCO Acquires Additional Interest in Etame Field from Sasol
Etame FieldEnergy Industry Review

VAALCO Acquires Additional Interest in Etame Field from Sasol

VAALCO Energy Inc announced that it has now completed the previously announced acquisition of Sasol Gabon SA’s 27.8% working interest in the

VAALCO Energy Inc 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%.

Key Highlights

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.

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