VAALCO Energy – EGY – Acquires Working Interest Offshore Equatorial Guinea
NYSE: EGY) announced that, having received the approval of the Government of Equatorial Guinea, it has acquired a 31% non-operating working interest in a production and development area (“PDA”) in Block P, offshore Equatorial Guinea from PETRONAS CARIGALI OVERSEAS SDN BHD. VAALCO paid $10 million for the working interest.
The PDA, which is operated by GEPetrol, the national oil company of Equatorial Guinea, contains the Venus field discovered in 2005. The Venus field is estimated to contain between 15 and 30 million gross recoverable barrels of oil. The PDA also contains a number of exploration prospects that VAALCO believes are highly attractive, primarily the SW Grande Prospect and the Marte Prospect, each of which has the potential to add substantial reserves to VAALCO.
VAALCO expects the near-term plans for the PDA will be the drilling of exploration wells on both the SW Grande and Marte prospects in 2013 followed by completing a plan of development, including the Venus discovery.
Robert Gerry, Chairman and CEO, commented: “With this acquisition, we believe we will expose our shareholders to significant upside potential from the offshore prospects in Block P. Oil is present, as proved by the Venus discovery, and we are of the opinion that additional accumulations are potentially present on Block P in the untested prospects, which are expected to be drilled in 2013.”
Additional partners in the PDA include GEPetrol (38.4%), Atlas Petroleum International Limited (5.6%), and Crown Energy Ventures Corporation (5.0%). In addition, the government of Equatorial Guinea has a 20% carried working interest.
About VAALCO Energy – EGY
VAALCO Energy, Inc. (EGY) is an independent energy company principally engaged in the acquisition, exploration, development and production of crude oil and natural gas. EGY owns producing properties and conducts exploration activities as operator in Gabon, West Africa, conducts exploration activities as an operator in Angola, West Africa, and has conducted exploration activities as a non-operator in the British North Sea. EGY owns minor interests in production activities as a non-operator in the United States. During the year ended December 31, 2011, the Etame, Avouma, South Tchibala and Ebouri fields produced approximately 8.1 million barrels of oil (2.3 million barrels of oil net to the Company).
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Post Written By: Ed Liston
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.
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