HOUSTON, July 17 2019 (GLOBE NEWSWIRE) – VAALCO Energy, Inc. (NYSE: EGY) today announced that the company has contributed $ 4.5 million to Angola National Oil, Gas and Biofuels Agency (ANPG), as a national concessionaire, under the previously announced settlement agreement signed earlier this year, which finalized the termination of VAALCO’s outstanding rights, responsibilities and 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 Sonangol P&P’s receivable which was related to the common interest billings. The cash payment was made after the recent issuance of an executive decree of the Ministry of Mineral Resources and Petroleum. The financial impact of the Settlement Agreement was noted in the first quarter of 2019.
Cary Bounds, CEO of VAALCO, commented: “We are extremely happy to have fulfilled all the conditions of our settlement agreement to leave Angola and we express our sincere gratitude to the national dealer for their pragmatic approach to help us achieve this important step. The finalization of the settlement agreement has raised considerable uncertainty about the financial impact of Angola’s exit. As we prepare for our next drilling campaign off Gabon, we are at an exciting turning point for the Company and remain fully focused on creating profitable growth and significant value for our shareholders. “
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 fact, included in this document that deal with activities, events, plans, expectations, goals or developments that VAALCO expects, thinks or anticipates that they are or may occur in the future are forward-looking statements. These statements may include future drilling plans, outlook assessments, future growth and financial projections. These statements are based on assumptions made by VAALCO based on its experience and its perception of historical trends, current conditions, expected future developments and other factors it deems 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 the discovery, development and production of reserves, differences in production. and sales due to the timing of withdrawals, decisions of future lenders, 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 described in more detail in VAALCO’s annual report on Form 10-K. for the fiscal 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 forward-looking statements. VAALCO disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
VAALCO Energy, Inc. is an independent Houston-based energy company primarily engaged in the acquisition, development and production of crude oil. The properties and surface area of the Company are located mainly in Gabon and Equatorial Guinea in West Africa.
Al Petrie 713-543-3422