The American oil and gas company Vaalco Energy has just finalized the acquisition of Sasol’s stake in the Etame Marin block off Gabon, for a value of $ 29.6 million, while the agreed transaction price was 44 millions of dollars.
Concluded in November 2020, the sale and purchase agreement for the acquisition of Sasol Gabon’s direct 27.8% stake in the Etame Marin block was finalized on February 26 by US producer Vaalco. The latter paid Sasol $ 29.6 million, taking into account the agreed transaction price of $ 44 million, the deposit already paid and the effective date adjustments.
Under the terms of the agreement, a conditional payment of $ 5 million will be payable to Sasol by Vaalco if the price of Brent oil is on average above $ 60 per barrel for 90 consecutive days, during the period from 1 July 2020 to June 30, 2022. “We are extremely pleased to complete this transformational transaction in a rising price environment. All cash payments were fully funded from cash available through cash flow generation in 2021, ”said CEO Cary Bounds.
The acquisition of Sasol’s 27.8% working interest in the Etame Marin block increased Vaalco’s working interest to 58.8% and nearly doubled the total net production and reserves of the US oil and gas company. “In addition, we believe that the recently acquired 3D seismic will improve our interpretation of the subsoil at Etame and lead to another successful drilling campaign, starting at the end of this year or the beginning of next year, funded by the operating cash flow, ”said the CEO of Vaalco.
Etame’s performance serves as the basis for the growth of the company, with future acquisition opportunities in line with its strategy and operational expertise.
