Vaalco Energy, Inc. has recently announced a significant development in its business operations. The company has entered into an agreement to sell all of its non-core producing properties in Canada for approximately $35.0 million Canadian dollars (USD $25.6 million). This transaction is subject to customary closing adjustments and is expected to close within the next 30 days.
The current working interest production from the Canadian properties is approximately at 1,850 barrels of oil equivalent per day (boepd). This divestiture aligns with Vaalco's strategic decision to focus on its core assets, with the CEO, George Maxwell, emphasizing the company's commitment to significant drilling campaigns and continued upside in its core areas.
It's worth noting that the operational cash flow generated from the Canadian assets over the past 12 months was approximately $9.7 million USD. This divestiture represents a multiple of 2.7x of the trailing 12 months operational cash flow, as the CEO highlighted in the press release.
This move is intended to allow Vaalco to concentrate on its core opportunities and assets. The company remains optimistic about its future, citing its high-quality assets with significant drilling and development opportunities that are expected to generate meaningful value for its shareholders for many years to come.
Vaalco Energy, Inc. is a Houston, Texas-based independent energy company with a diverse portfolio of production, development, and exploration assets across Gabon, Egypt, Côte d'Ivoire, Equatorial Guinea, and Nigeria.
Following these announcements, the company's shares moved 2.04%, and are now trading at a price of $4.50. For the full picture, make sure to review VAALCO ENERGY INC /DE/'s 8-K report.
