VAALCO Energy to Acquire Svenska Petroleum Exploration AB for $66.5M
Portfolio Pulse from Benzinga Newsdesk
VAALCO Energy, Inc. (NYSE:EGY) has announced its agreement to acquire Svenska Petroleum Exploration AB for $66.5 million, aiming to expand its portfolio with a 27.39% interest in the Baobab field, offshore Cote d'Ivoire. The acquisition, funded by cash and a pre-closing dividend, is expected to close in Q2 2024.
February 29, 2024 | 7:25 am
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VAALCO Energy's acquisition of Svenska Petroleum for $66.5 million expands its asset base with a significant stake in the Baobab field, funded without debt or equity issuance.
The acquisition is significant for VAALCO as it expands its operational footprint in West Africa without diluting shareholder value through debt or equity issuance. The strategic nature of the acquisition and the use of cash reserves suggest a positive outlook on the company's financial health and growth prospects. However, the final impact on the stock price will depend on market perception of the acquisition's value and the successful integration of the new asset.
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