Vaalco Energy Sells Non-Core Canadian Assets for $25.6M
Vaalco Energy announced that it had entered into an agreement for the sale of all of its non-core producing properties in Canada to a third party for approximately $25.6M, subject to customary closing adjustments. The Canadian properties current working interest production is approximately at 1,850 barrels of oil equivalent per day. The effective date of the Canadian Asset Sale is February 1 and it is expected to close within the next 30 days, subject to satisfaction of the customary closing conditions. George Maxwell, Vaalco's CEO, commented, "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 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. This non-core asset sale for $35.0 million Canadian Dollars is equal to 2.7x1 of our trailing 12 months operational cash flow and does not impact our borrowing base which allows us to focus on core opportunities. We are excited about the future and believe that Vaalco has many high-quality assets with significant drilling and development opportunities that we expect to generate meaningful value for our shareholders for many years to come."
