VAALCO Energy, Inc. Acquires 70% Interest in and Becomes Operator of Offshore Côte D’Ivoire CI-705 Block
VAALCO Energy (NYSE: EGY) has acquired a 70% working interest and operatorship in the CI-705 block offshore Côte d'Ivoire for $3 million. The block, spanning approximately 2,300 km² in the Tano basin, is situated 70 km west of VAALCO's CI-40 Block and 60 km from ENI's Calao discovery.
The CI-705 block features water depths ranging from zero to 2,500 meters and has been lightly explored with three wells drilled to date. Through a commercial carry arrangement, VAALCO will maintain a 100% paying interest while partnering with Ivory Coast Exploration Oil & Gas SAS and PETROCI.
The company plans to conduct detailed geological analysis to assess both oil and natural gas prospects, including seismic reprocessing and interpretation, with the potential to drill up to two exploration wells.
VAALCO Energy (NYSE: EGY) ha acquisito una partecipazione del 70% e la gestione del blocco CI-705 al largo della Costa d'Avorio per 3 milioni di dollari. Il blocco, che si estende per circa 2.300 km² nella basin di Tano, si trova a 70 km a ovest del blocco CI-40 di VAALCO e a 60 km dalla scoperta di Calao di ENI.
Il blocco CI-705 presenta profondità d'acqua che variano da zero a 2.500 metri ed è stato esplorato solo parzialmente, con tre pozzi trivellati fino ad oggi. Attraverso un accordo di carry commerciale, VAALCO manterrà un interesse economico del 100% collaborando con Ivory Coast Exploration Oil & Gas SAS e PETROCI.
L'azienda prevede di condurre un'analisi geologica dettagliata per valutare sia le prospettive di petrolio che di gas naturale, inclusa la rielaborazione e l'interpretazione sismica, con la possibilità di perforare fino a due pozzi esplorativi.
VAALCO Energy (NYSE: EGY) ha adquirido un interés de trabajo del 70% y la operativa en el bloque CI-705 frente a la costa de Côte d'Ivoire por 3 millones de dólares. El bloque, que abarca aproximadamente 2,300 km² en la cuenca de Tano, se encuentra a 70 km al oeste del bloque CI-40 de VAALCO y a 60 km del descubrimiento de Calao de ENI.
El bloque CI-705 presenta profundidades de agua que varían de cero a 2,500 metros y ha sido explorado de manera ligera, con tres pozos perforados hasta la fecha. A través de un acuerdo de carry comercial, VAALCO mantendrá un interés económico del 100% mientras colabora con Ivory Coast Exploration Oil & Gas SAS y PETROCI.
La empresa planea realizar un análisis geológico detallado para evaluar tanto las perspectivas de petróleo como de gas natural, incluida la reprocesamiento e interpretación sísmica, con el potencial de perforar hasta dos pozos exploratorios.
VAALCO Energy (NYSE: EGY)는 코트디부아르 해안의 CI-705 블록에서 3백만 달러에 70%의 작업 지분과 운영권을 인수했습니다. 이 블록은 타노 분지에 위치하며 약 2,300 km²의 면적을 차지하고 있으며, VAALCO의 CI-40 블록에서 서쪽으로 70km, ENI의 칼라오 발견지에서 60km 떨어져 있습니다.
CI-705 블록은 수심이 0에서 2,500미터까지 다양하며, 현재까지 세 개의 탐사 유정이 굴착되었습니다. 상업적 캐리 협정을 통해 VAALCO는 Ivory Coast Exploration Oil & Gas SAS 및 PETROCI와 협력하면서 100%의 경제적 이익을 유지할 것입니다.
회사는 석유 및 천연가스의 잠재성을 평가하기 위해 세부적인 지질 분석을 수행할 계획이며, 여기에는 지진 재처리 및 해석이 포함되며, 최대 두 개의 탐사 유정을 굴착할 가능성이 있습니다.
VAALCO Energy (NYSE: EGY) a acquis une participation de 70 % et l’exploitation du bloc CI-705 au large de la Côte d'Ivoire pour 3 millions de dollars. Le bloc, s'étendant sur environ 2 300 km² dans le bassin de Tano, est situé à 70 km à l'ouest du bloc CI-40 de VAALCO et à 60 km de la découverte de Calao par ENI.
Le bloc CI-705 présente des profondeurs d'eau variant de zéro à 2 500 mètres et a été légèrement exploré avec trois puits forés à ce jour. Grâce à un accord commercial de carry, VAALCO maintiendra un intérêt économique de 100 % tout en s'associant à Ivory Coast Exploration Oil & Gas SAS et PETROCI.
L'entreprise prévoit de réaliser une analyse géologique détaillée pour évaluer les perspectives de pétrole et de gaz naturel, y compris le reprocessing et l'interprétation sismique, avec la possibilité de forer jusqu'à deux puits d'exploration.
VAALCO Energy (NYSE: EGY) hat ein 70%iges Arbeitsinteresse und die Betriebsführung im Block CI-705 vor der Küste von Côte d'Ivoire für 3 Millionen Dollar erworben. Der Block erstreckt sich über etwa 2.300 km² im Tano-Becken und liegt 70 km westlich des CI-40 Blocks von VAALCO und 60 km von der Calao-Entdeckung von ENI entfernt.
Der Block CI-705 weist Wassertiefen von null bis 2.500 Metern auf und wurde bisher nur leicht erkundet, mit drei bis heute gebohrten Brunnen. Durch eine kommerzielle Carry-Vereinbarung wird VAALCO ein 100%iges Zahlungsinteresse aufrechterhalten, während das Unternehmen mit Ivory Coast Exploration Oil & Gas SAS und PETROCI zusammenarbeitet.
Das Unternehmen plant, eine detaillierte geologische Analyse durchzuführen, um sowohl die Öl- als auch die Erdgasvorkommen zu bewerten, einschließlich der seismischen Nachbearbeitung und Interpretation, mit dem Potenzial, bis zu zwei Erkundungsbohrungen durchzuführen.
- Acquired 70% operating interest for only $3M
- Strategic location near existing infrastructure and recent discoveries
- Potential for both oil and natural gas prospects
- Expansion in investment-friendly country
- Block is lightly explored with only 3 wells to date
- 100% paying interest burden through carry arrangement
- Significant water depth variation (0-2,500m) may complicate operations
Insights
VAALCO's acquisition of a 70% interest in the CI-705 block represents a strategic expansion of their West African operations and provides several potential benefits for the company.
The
The block's proximity to existing infrastructure and other productive assets is noteworthy - it's located just 70km from VAALCO's CI-40 Block (containing Baobab and Kossipo oil fields) and 60km from ENI's recent Calao discovery. This strategic positioning could deliver significant operational synergies if commercial discoveries are made.
While only lightly explored with three wells to date, the company's belief in its "significant prospectivity" suggests their preliminary assessment identified promising geological features. The potential for both oil and natural gas adds flexibility to their development options.
For investors, this represents another step in VAALCO's continued portfolio diversification beyond their traditional core assets. The commercial carry arrangement demonstrates disciplined capital allocation while maintaining exploration upside, aligning with their established strategy of acquiring and enhancing assets across West Africa.
The technical aspects of VAALCO's CI-705 block acquisition reveal significant exploration potential. The block's position in the prolific Tano basin - a proven petroleum system - substantially increases the probability of commercial discoveries compared to frontier basins.
What's particularly interesting is the water depth variation from 0 to 2,500 meters, providing both shallow and deepwater exploration targets. This depth range offers development versatility, with shallow targets typically being less expensive to develop while deepwater zones often containing larger potential reserves.
With only three wells drilled across 2,300 km², the block remains substantially underexplored. Modern seismic processing techniques applied to this area could identify prospects overlooked by previous exploration efforts. VAALCO's mention of conducting "detailed, integrated geological analysis" suggests they'll employ advanced subsurface modeling before committing to drilling.
The mention of both oil and natural gas prospects indicates potential resource diversity. Given Côte d'Ivoire's growing domestic natural gas market, commercialization paths exist for both hydrocarbon types. The commitment to potentially drill two exploration wells shows confidence in their technical assessment.
The block's proximity to existing producing assets provides valuable analogues for reservoir characteristics and production behavior. This reduces technical uncertainty in prospect evaluation and allows for more accurate resource estimates. Should discoveries be made, the nearby infrastructure could significantly reduce development costs and accelerate time to first production.
HOUSTON, March 03, 2025 (GLOBE NEWSWIRE) -- VAALCO Energy, Inc. (NYSE: EGY; LSE: EGY) (“Vaalco” or the “Company”) announced that it has farmed into the CI-705 block offshore Côte d’Ivoire. Vaalco will become operator of the block with a
“We are very excited to expand our footprint offshore Côte d’Ivoire,” said George Maxwell, Vaalco’s Chief Executive Officer. “When we announced our entry into country in 2024 as a non-operating partner in the CI-40 block, we noted our excitement to be expanding our West African focus in a well-established and investment-friendly country. We believe the CI-705 block is favorably located in a proven petroleum system, near existing infrastructure with access to a strong growing domestic market with attractive upside potential. Under the terms of the farm-in, we will operate the block with a
Source: Vaalco Energy
About Vaalco
Vaalco, founded in 1985 and incorporated under the laws of Delaware, is a Houston, Texas, USA based, independent energy company with a diverse portfolio of production, development and exploration assets across Gabon, Egypt, Côte d’Ivoire, Equatorial Guinea, Nigeria and Canada.
For Further Information
| Vaalco Energy, Inc. (General and Investor Enquiries) | +00 1 713 543 3422 |
| Website: | www.vaalco.com |
| Al Petrie Advisors (US Investor Relations) | +00 1 713 543 3422 |
| Al Petrie / Chris Delange | |
| Buchanan (UK Financial PR) | +44 (0) 207 466 5000 |
| Ben Romney / Barry Archer | Vaalco@buchanan.uk.com |
Forward Looking Statements
This press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created by those laws and other applicable laws and “forward-looking information” within the meaning of applicable Canadian securities laws. Where a forward-looking statement expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. All statements other than statements of historical fact may be forward-looking statements. The words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “forecast,” “outlook,” “aim,” “target,” “will,” “could,” “should,” “may,” “likely,” “plan” and “probably” or similar words may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements in this press release include, but are not limited to, statements relating to (i) estimates of future drilling, production, sales and costs of acquiring crude oil, natural gas and natural gas liquids; (ii) expectations regarding Vaalco's ability to effectively integrate assets and properties it has acquired as a result of the Svenska acquisition into its operations; (iii) expectations regarding future exploration and the development, growth and potential of Vaalco’s operations, project pipeline and investments, and schedule and anticipated benefits to be derived therefrom; (iv) expectations regarding future acquisitions, investments or divestitures; (v) expectations of future balance sheet strength; and (vi) expectations of future equity and enterprise value.
Such forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by the forward-looking statements. These risks and uncertainties include, but are not limited to: risks relating to any unforeseen liabilities of Vaalco; the ability to generate cash flows that, along with cash on hand, will be sufficient to support operations and cash requirements; risks relating to the timing and costs of completion for scheduled maintenance of the FPSO servicing the Baobab field; and the risks described under the caption “Risk Factors” in Vaalco’s 2023 Annual Report on Form 10-K filed with the SEC on March 15, 2024 and subsequent Quarterly Reports on Form 10-Q filed with the SEC.
Inside Information
This announcement contains inside information as defined in Regulation (EU) No. 596/2014 on market abuse which is part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (“MAR”) and is made in accordance with the Company’s obligations under article 17 of MAR. The person responsible for arranging the release of this announcement on behalf of Vaalco is Matthew Powers, Corporate Secretary of Vaalco.
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/0ca96dfc-9a1c-4e43-a010-fc63848983f2
FAQ
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