Vaalco Energy to sell non-core producing Canadian asset
Vaalco Energy Inc., Houston, has agreed to sell all of its non-core producing properties in Canada to an undisclosed third party for about $35 million (Can.) (US$25.6 million).
Production from the properties net to Vaalco’s working interest is about 1,850 boe/d.
George Maxwell, Vaalco’s chief executive officer, said the time is right to divest the property and allocate capital to higher-potential assets.
“Over the past several years, we have worked to increase liquids production in Canada, improve operational and drilling efficiencies, drilled some successful wells and generated $82 million Canadian Dollars (USD $64 million) in operational cash flow since our acquisition. While we believe that the Canadian assets are solid, we have decided to focus on our core assets with significant drilling campaigns and continued upside. With all of the recent successes in our assets and continued large scale drilling campaigns underway or planned in those areas, we determined that now was the right time to sell.
Vaalco portfolio consists of production, development, and exploration assets spanning Côte d'Ivoire Egypt, Equatorial Guinea, and Gabon.
The sale of the non-core Canada asset is expected to close within the next 30 days, subject to closing conditions.