VAALCO Energy Inc., Houston, has agreed to acquire all outstanding common shares of TransGlobe Energy Corp. to create an African-focused exploration and production company in a stock-for-stock deal valued at $307 million.
Together, the combine will hold assets in established basins in Egypt, Gabon, Equatorial Guinea, and Canada, creating a larger, and more diversified reserves and production base with increased optionality to high-grade and sequence investment projects towards the highest-return projects, the companies said in a combined statement July 14.
A combined 2022 mid-point production guidance of 19,100 boe/d is expected on a net revenue interest (NRI) (96% oil and liquids) basis across Egypt, Gabon, and Canada, and 24,400 boe/d on a working interest (WI) basis.
Proved (1P) reserves for the combine an NRI basis of 32 MMboe (92% oil) and 41 MMboe on a WI basis (92% oil) are expected.
The combined company, expected to remain a Delaware corporation headquartered in Houston, will continue to be led by George Maxwell as chief executive officer and Ron Bain as chief financial officer, with the executive team of TransGlobe remaining with the business through a 3–6-month transition period.
At closing, expected in this year’s second half subject to stockholder and shareholder approval as well as approval of Queen’s Bench of Alberta, and other considerations, the company board will be proportionally comprised of VAALCO and TransGlobe non-executive directors, with Andrew L. Fawthrop as chair.
VAALCO stockholders and TransGlobe shareholders would own about 54.5% and 45.5% of the combined company, respectively.
