Vaalco seeks London listing ‘to support growth strategy’
- Business & Finance
Houston-based oil and gas company Vaalco Energy has revealed its intention to list on the main market of the London Stock Exchange (LSE) to broaden shareholder base and access future capital to support growth strategy.
Vaalco announced on Monday its formal intention to seek a standard listing on the Main Market of LSE, to complement its existing listing on the New York Stock Exchange.
Vaalco is the operator of the Etame Marin Block located offshore Gabon (31.1% working interest), that has produced circa 110 million gross barrels since first sale of oil in November 2002.
The company has net production (after royalty deduction) of 3,664 barrels of oil per day (BOPD) as at 2Q 2019.
The company has recently started an active work program at Etame field off Gabon to grow production and reserves, with up to three development wells and two appraisal wellbores to be drilled within the next 12 months. The Etame field has reserves and resources of about 123 million gross barrels of oil (MMBBL).
The company has a diversified portfolio with exploration and development potential from Block P, offshore Equatorial Guinea (31% working interest) and has no debt and $48.6 million of cash and cash equivalents at June 30, 2019.
Vaalco said it expects the listing to occur by September 30, 2019.
Cary Bounds, VAALCO’s Chief Executive Officer commented: “Since 2017, our strategy has been clearly focused on strengthening the core foundations of the company and preparing it for sustainable, long-term growth. We have successfully delivered a number of material developments that have secured and enhanced the future for Vaalco, enabling us to embark on this dual-listing from a position of strength.”
He added: “The London Listing makes strong strategic sense in terms of obtaining a dual-listing on another leading international exchange with a sophisticated understanding of investment propositions and assets within Vaalco’s West Africa focus. We hope to use the listing as a springboard to achieve our ambitious medium-term organic and inorganic growth objectives.”
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