Since VAALCO currently owns and operates a 31.1% working interest in Etame, the transaction will almost double VAALCO’s total production and reserves once completed. In addition, VAALCO has agreed to acquire Sasol’s 40% non-operated participating interest in Block DE-8 offshore Gabon, with Perenco, the operator, holding the remaining 60%.
VAALCO has agreed to total cash consideration for both interests of approximately US$44 million and certain contingent payments of up to US$6 million.
The Ashurst team was led by partner Yann Alix, supported by senior associate Quentin Robinson and associate Claudia Cicone.
Commenting on the transaction and the support provided by the Ashurst team, Michael Silver, Executive Vice President and General Counsel at VAALCO, said:
"This transaction continues our strong commitment to the West African market in which we have operated since 1995. We see substantial upside in our current Gabon assets and seek to expand into new opportunities across Africa. I enjoy working with the Ashurst attorneys and appreciate all of their support over the years. Yann Alix and his team have provided us with a first rate, incisive and exceptionally responsive approach that we value greatly."
Yann Alix added:
"We are delighted to have assisted VAALCO on such a transformational transaction and to continue our longstanding relationship with them. This transaction and Ashurst's previous assistance on VAALCO's license extension in 2018 and internal restructuring in 2016 are a testament to Ashurst's global energy capability and the strength and quality of our Africa practice."
