VAALCO Energy, Inc. Announces Payment of Amount Due Under Final Settlement Agreement With Sonangol E.P. in Angola
July 17 2019 - 5:50PM
VAALCO Energy, Inc. (NYSE: EGY) today announced that the Company
has paid $4.5 million to
Angola National Agency of
Petroleum, Gas, and Biofuels (
ANPG), as National
Concessionaire, under the terms of the previously announced
Settlement Agreement executed earlier this year that finalized the
termination of VAALCO’s rights, liabilities and outstanding
obligations for Block 5/06 in Angola. The Settlement
Agreement provided for a cash payment of $4.5 million from VAALCO
to the National Concessionaire as well as the elimination of the
receivable from Sonangol P&P that was related to joint-interest
billings. The cash payment was made after the recent
publishing of an executive decree from the Ministry of Mineral
Resources and Petroleum. The financial impact of the Settlement
Agreement was recognized in the first quarter of 2019.
Cary Bounds, VAALCO’s Chief Executive Officer,
commented, “We are extremely pleased to have fulfilled all the
terms of our Settlement Agreement to exit Angola and we offer our
sincere gratitude to the National Concessionaire for their
pragmatic approach to helping us reach this material milestone.
Finalizing the Settlement Agreement has removed considerable
uncertainty over the financial impact of exiting Angola. As
we prepare for our upcoming drilling campaign offshore Gabon, we
are at an exciting juncture for the Company and remain wholly
focused on delivering profitable growth and meaningful value for
our shareholders.”
Forward Looking Statements
This document includes "forward-looking
statements" within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended. All statements, other than statements of
historical facts, included in this document that address
activities, events, plans, expectations, objectives or developments
that VAALCO expects, believes or anticipates will or may occur in
the future are forward-looking statements. These statements may
include future drilling plans, prospect evaluations, future growth
and financial projections. These statements are based on
assumptions made by VAALCO based on its experience and perception
of historical trends, current conditions, expected future
developments and other factors it believes are appropriate in the
circumstances. Such statements are subject to a number of
assumptions, risks and uncertainties, many of which are beyond
VAALCO's control. These risks include, but are not limited
to, oil and gas price volatility, inflation, general economic
conditions, the Company's success in discovering, developing and
producing reserves, production and sales differences due to timing
of liftings, decisions by future lenders, the risks associated with
liquidity, lack of availability of goods, services and capital,
environmental risks, drilling risks, foreign regulatory and
operational risks, and regulatory changes. These and other
risks are further described in VAALCO's annual report on Form 10-K.
for the year ended December 31, 2018, and other reports filed with
the SEC. Investors are cautioned that forward-looking
statements are not guarantees of future performance and that actual
results or developments may differ materially from those projected
in the forward-looking statements. VAALCO disclaims any
intention or obligation to update or revise any forward-looking
statements, whether as a result of new information, future events,
or otherwise.
About VAALCO
VAALCO Energy, Inc. is a Houston-based
independent energy company principally engaged in the acquisition,
development and production of crude oil. The Company's properties
and acreage are located primarily in Gabon and Equatorial Guinea in
West Africa.
Investor Contact Al Petrie
713-543-3422
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