Offshore staff
HOUSTON – Operator Perenco has exercised its rights to acquire Sasol’s 40% interest in block DE-8, pre-empting VAALCO Energy’s planned entry.
However, VAALCO has been cleared to purchase 27% of Sasol’s equity in the offshore Etame Marin block, after the other partners decided not to apply their pre-emptive rights.
CEO Cary Bounds said: “Based on production performance in November, our production capacity, including volumes acquired from Sasol, would be over 9,000 b/d of oil…
“In addition, this transaction is lowering our breakeven cost per barrel by increasing production with minimal increases to G&A expense.
“While we are disappointed that we will not be participating in block DE-8, this eliminates the cost to drill the appraisal well, thereby reducing our overall capital commitment in 2021 by between $7 million and $9 million and removes the $1 million potential contingency obligation.”
12/22/2020
