VAALCO’s year-end 2023 pro forma SEC net proved reserves to total 45.6 MMboe following the closing of its acquisition of $40.2 million acquisition of Svenska Petroleum Exploration. (Source: Shutterstock)
Houston-based VAALCO Energy Inc. filed updates with the U.S. Securities and Exchange Commission (SEC) regarding its $40.2 million acquisition of Svenska Petroleum Exploration, which closed April 30.
In the SEC filing, VAALCO reported net proved reserves of 16.9 MMboe (93% oil) as of Dec. 31, 2023. The standardized measure of those reserves totaled $195.5 million.
This results in VAALCO’s year-end 2023 pro forma SEC net proved reserves totaling 45.6 MMboe, a 59% increase from its reported year-end 2023 SEC net proved reserves of 28.6 MMboe.
Swedish E&P Svenska’s primary asset is a 27.39% non-operated working interest (WI) in the deepwater Baobab Field in Block CI-40, offshore Côte d’Ivoire.
When the acquisition was announced in February, it included Svenska’s estimated 1P WI CPR (competent person’s report) reserves of 13 MMboe (99% oil) as of Oct. 1, 2023. It also included total 2P WI CPR reserves of 21.7 MMboe (97% oil) as of Oct. 1, 2023.
Svenska’s 2P WI CPR reserves saw an estimated 22.5 MMboe as of Dec. 31, 2023, compared to Oct. 1, 2023.
Using the deal’s purchase price of $40.2 million, VAALCO paid approximately $2.37 per net proved barrel of reserves. VAALCO said the transaction was fully funded by cash on hand with no issuance of debt or equity.
“This strategic and highly cost-effective acquisition strategically expands our West African focus area with a sizeable producing asset that has significant upside potential and considerable future development opportunities in Côte d’Ivoire, a well-established and investment-friendly country,” said George Maxwell, VAALCO’s CEO.
Since Dec. 31, 2023, VAALCO said it worked with its third-party reserves auditors to calculate its SEC proved reserves and related standardized measure of discounted future net cash flows as of that date utilizing a flat SEC pricing assumption of $83.06/bbl of oil.
Recommended Reading
Arbitration Looms for Venture Global Dispute, With Billions at Stake
2024-12-04 - Claims against Venture Global LNG’s Calcasieu Pass could cost up to $5.4 billion over 6 mtpa of disputed LNG sales, according to Jefferies Group analysts.
Lake Charles LNG Selects Technip Energies, KBR for Export Terminal
2024-09-20 - Lake Charles LNG has selected KTJV, the joint venture between Technip Energies and KBR, for the engineering, procurement, fabrication and construction of an LNG export terminal project on the Gulf Coast.
Exxon Awards JGC, Technip Energies LNG FEED Contract
2024-09-26 - Technip Energies said Rovuma LNG, located in Mozambique, is expected to have a total production capacity of 18 million tonnes per annum.
Woodside on the Prowl for Driftwood Partners, Gas Suppliers
2024-09-26 - Australian natural gas and LNG exporter Woodside Energy, which recently agreed to acquire Tellurian in a deal valued at $1.2 billion, isn’t yet looking to develop an upstream U.S. onshore position to secure gas for Driftwood LNG.
Shell to Buy New England Gas-fired Power Plant
2024-10-24 - Shell already had a market agreement with RISEC Holdings for all of the electricity the 609-MW Rhode Island plant produced.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.