VAALCO Energy, Inc. entered into a sales and purchase agreement to acquire Svenska Petroleum Exploration AB from Petroswede AB for approximately $66.5 million.
February 28, 2024
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VAALCO Energy, Inc. entered into a sales and purchase agreement to acquire Svenska Petroleum Exploration AB from Petroswede AB for approximately $66.5 million on February 29, 2024. The gross consideration for the Acquisition is $66.5 million, subject to customary closing adjustments, with an effective date of October 1, 2023. The gross purchase price will be partially funded by a pre-closing dividend of cash on Svenska?s balance sheet to the Seller with the balance funded by a portion of VAALCO?s cash-on-hand with no issuance of debt or equity. The transaction is Immediately accretive to VAALCO Energy's shareholders. VAALCO currently estimates that the net cash due at closing will be in the range of approximately $30 to $40 million, dependent on timing. The Acquisition is subject to a number of customary closing conditions, including regulatory and government approvals. Closing of the Acquisition is expected in the second quarter of 2024, with ultimate timing dependent on final receipt of all necessary approvals. The transaction has been approved by the respective boards of directors of the VAALCO Energy and the Petroswede AB. Closing is subject to obtaining necessary regulatory approvals in Cote d?Ivoire and Sweden and the satisfaction of other customary closing conditions. If the closing conditions are not satisfied or waived within nine months of date of the Share Purchase Agreement, then either the Buyer or the Seller may, at its discretion, terminate the Share Purchase Agreement.
Callum Stewart and Simon Mensley of Stifel as sole financial advisor, and Mayer Brown International LLP as legal counsel to VAALCO Energy, Inc. Svenska Petroleum Exploration AB has retained Evercore Partners International LLP and GKA Advisors LLP as financial advisers and Fieldfisher LLP as legal counsel.
VAALCO Energy, Inc. is an independent energy company principally engaged in the acquisition, exploration, development and production of crude oil, natural gas and natural gas liquids. The Companyâs segments include segments Gabon and Equatorial Guinea. It holds 58.8% participating interest in the Etame Marin block, located offshore Gabon in West Africa. The Etame Marin block covers an area of approximately 46,200 gross acres located 20 miles offshore in water depths of approximately 250 feet. The operations of all segments include exploration for and production of hydrocarbons where commercial reserves have been found and developed. The Company owns an interest in an undeveloped block offshore Equatorial Guinea, West Africa. The Company conducts its operating activities in Egypt, Canada, and offshore Gabon. In Egypt, its interests are spread across two regions: the Eastern Desert, which contains the West Gharib, West Bakr and Northwest Gharib merged concessions, and the Western Desert.
VAALCO Energy, Inc. entered into a sales and purchase agreement to acquire Svenska Petroleum Exploration AB from Petroswede AB for approximately $66.5 million.
VAALCO ENERGY, INC. 
