Gabon: Vaalco increases Etame stake

Vaalco Energy has agreed to buy the 3.23% stake in the Etame Marin permit owned by Japan’s Sojitz. This acquisition is expected to boost Vaalco’s net production by nearly 11% with effect from 1 August. Vaalco will fund the acquisition with cash and an additional $5m of loan capacity available under a new term loan agreement announced in early July with the International Finance Corporation. Vaalco chief executive Steve Guidry said the company believed the block had significant upside potential remaining. “We have identified at least 17 future drilling opportunities we can pursue when prices recover that we estimate could include about 65m barrels of gross unrisked recoverable contingent resources,” he said.