Page 6 - AfrOil Week 29

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Vaalco settles Angola debts
angola
NeW York-listed Vaalco energy has paid $4.5mn to Angola’s Agência Nacional de Petróleo Gás e Biocombustíveis (ANPG) to settle its exit from the West African state’s Block 5. Vaalco reached this agreement in the rst quarter of this year. In addition to the cash payment, it also involves cancelling the receivable from Sonangol P&P.
further work in Gabon. “As we prepare for our upcoming drilling campaign o shore Gabon, we are at an exciting juncture for the company and remain wholly focused on delivering prof- itable growth and meaningful value for our shareholders.”
e agreement was reached with Sonangol eP, which was then the concessionaire. Follow- ing this, though, the role was handed over to ANPG as part of Angola’s move towards improv- ing its commercial appeal to investors.
“We are extremely pleased to have ful lled
all the terms of our settlement agreement to exit
Angola and we offer our sincere gratitude to
[ANPG] for their pragmatic approach to helping
us reach this material milestone,” said Vaalco’s
CeO, Cary Bounds. “Finalising the settlement
agreement has removed considerable uncertainty
overthe nancialimpactofexitingAngola.” ecompanyenteredtheblockinNovem-
Vaalco plans to lead a development drilling programme in Gabon, starting in the third quar- ter. is will cover up to three development wells and two appraisals at a cost of $25-30mn.
e Sonangol P&P receivable was related to joint interest billings, Vaalco said. e cash pay- ment was made following an executive decree from the Angolan Ministry of Mineral Resources and Petroleum. Following the deal in the rst quar- ter, Vaalco recognised a post-tax bene t of $5.7mn.
Bounds noted the company’s plans for
ber 2006, with an $8.4mn signature bonus. It drilled one well, the Kindele 1, in 2015. Under the production-sharing agreement (PSA) on the block, Vaalco was required to drill a cer- tain number of wells, with one well obligation outstanding. e agreement set the price at $10mn per well, with Vaalco’s share at $5mn per well. Acknowledging the uncertainty around the payment, Vaalco reported a max- imum amount of $15mn in its 2018 annual report.™
Vaalco told Sonangol P&P, its partner on Block 5, that it intended to withdraw from the area in September 2016.
PERfoRmanCE
AGM makes Ghanaian discovery
gHana
AGM Petroleum has drilled two wells in the South Deepwater Tano (SDT) block and is assessing the results, according to a report from Aker, the Norwegian holding company. One well is reported to have made a discovery. Work on the wells was carried out by the Maersk Viking drillship, which is under contract to Aker energy and AGM until August of this year.
Aker energy acted as a service provider for AGM during the drilling of the two exploration wells, Kyenkyen-1X and Nyankom-1X, Aker’s CeO and president, Oyvind eriksen, said. “We are pleased to announce that oil has been dis- covered in the AGM block. When it comes to volume ranges, AGM will communicate this at a later stage. e drilling results, including quanti- cation of volume, are subject to further analysis.”
e o cial went on to say Aker was consid- ering a consolidation of Aker energy and AGM. ere has been discussion in the past of a regional development, linking up nds on both compa- nies’ areas. Aker is also considering an initial pub- lic o ering (IPO) for Aker energy, although no commitments were given on timing.
Assessments by AGM would have a bearing on the next steps to be taken, both geological and commercial. AGM is controlled by Petrica
Holding, which is in turn owned by TRG Hold- ing, also the majority owner of Aker.
An Aker and TRG joint venture, Aker energy, is working on a block in Ghana next to SDT. Aker energy submitted a plan of development on the Pecan eld to the Ghanaian authorities at the end of June. Aker said approval of the plan and a nal investment decision (FID) by Aker energy were anticipated in the second half of 2019.
Aker energy has found 334mn barrels of oil equivalent on Pecan, with another 5-15mn boe on the Pecan South-1A well. e Pecan South east well is unlikely to be commercial, Aker said. e Ghanaian-focused company views proving up additional volumes as a priority, its part- owner said.
“While the last of the three wells, Pecan South east, was not deemed commercial, Aker energy still estimates a signi cant upside potential in the area, beyond the estimated contingent resources of 450-550mn boe,” eriksen said.
In additional news, Aker noted Ocean Yield – another subsidiary – had extended an agreement with Aker energy on the provision of a bareboat charter for the FPSO Dhirubhai-1, for 15 years. ere is, though, uncertainty on this deal and Ocean Yield is pursuing other options.™
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w w w . N E W S B A S E . c o m Week 29 23•July•2019