Vaalco Expands Its Presence in the Tano Basin with CI-705 Block Acquisition

Vaalco Energy, a leading international oil and gas company, has announced a significant expansion of its operations in West Africa with the farming into the CI-705 block located offshore Côte d’Ivoire. As part of this strategic move, Vaalco will assume the role of operator with a 70% working interest and a 100% paying interest through a commercial carry arrangement. The company is partnering with Ivory Coast Exploration Oil & Gas SAS and Petroci, the national oil company of Côte d’Ivoire, to explore and develop the block’s promising resources. This acquisition underscores Vaalco’s confidence in the region’s prospectivity and its commitment to growing its portfolio in one of Africa’s most prolific hydrocarbon basins.

Strategic Location and Exploration Potential of the CI-705 Block

The CI-705 block is situated in the Tano Basin, a well-known hydrocarbon province that has yielded numerous significant discoveries in recent years. Its strategic location, approximately 70 kilometers west of Vaalco’s existing CI-40 Block, positions it near the Baobab and Kossipo oil fields, which are key contributors to Vaalco’s current production. Additionally, the block lies 60 kilometers west of ENI’s recent Calao discovery, further highlighting the area’s potential for hydrocarbon resources. Covering an expansive area of approximately 2,300 square kilometers, the CI-705 block offers substantial exploration opportunities. Despite its size, the block has seen limited exploration to date, with only three wells drilled so far, leaving significant room for further discovery and development.

Vaalco’s Investment and Vision for the Block

Vaalco has invested $3 million to secure its interest in the CI-705 block, a move that reflects the company’s belief in the block’s high potential for hydrocarbon discoveries. The block’s water depth ranges from zero to 2,500 meters, providing a mix of shallow and deep-water exploration opportunities. Vaalco’s expertise in operating in similar environments, combined with its proven track record in the region, positions the company well to unlock the block’s full potential. By taking on the operator role, Vaalco will leverage its technical capabilities and regional knowledge to drive exploration and development activities forward. This move is consistent with Vaalco’s strategy of focusing on high-impact opportunities in proven basins, where the company can add significant value through its operational excellence.

The Financial and Strategic Benefits of the Partnership

The partnership with Ivory Coast Exploration Oil & Gas SAS and Petroci not only strengthens Vaalco’s presence in Côte d’Ivoire but also aligns with the company’s strategy of collaborating with local partners to ensure mutual success. The commercial carry arrangement, which provides Vaalco with a 100% paying interest, is a financially attractive structure that allows the company to manage its capital exposure while maintaining control of the block’s operations. This arrangement also demonstrates Vaalco’s commitment to supporting the development of the local oil and gas industry, as it works closely with Petroci to build capacity and expertise. By securing a 70% working interest, Vaalco is well-positioned to benefit from the block’s future successes, whether through discoveries, production, or potential monetization.

Environmental and Social Responsibility in the Tano Basin

As Vaalco moves forward with its plans for the CI-705 block, the company remains committed to upholding the highest standards of environmental stewardship and social responsibility. The Tano Basin’s rich biodiversity and the communities adjacent to the block are key considerations in Vaalco’s operations. The company will prioritize minimizing its environmental footprint through responsible drilling and production practices, as well as engaging with local stakeholders to ensure that its activities align with the region’s sustainable development goals. Vaalco’s approach to environmental and social governance (ESG) is integral to its operating philosophy and will guide its actions as it explores and develops the CI-705 block.

Conclusion: A Bright Future for Vaalco in Côte d’Ivoire

The farming into the CI-705 block represents a significant milestone in Vaalco’s growth strategy and underscores the company’s confidence in the potential of the Tano Basin. With its strategic location, underexplored acreage, and favorable partnership structure, the CI-705 block offers Vaalco a compelling opportunity to expand its resource base and deliver value to its stakeholders. As the company progresses with its exploration and development plans, Vaalco is poised to reinforce its position as a leading player in Côte d’Ivoire’s oil and gas sector. This acquisition not only highlights Vaalco’s ability to identify and secure high-quality opportunities but also reflects its long-term commitment to the region and its people.

For investors seeking to capitalize on the growth of the global energy sector, Vaalco’s latest move is a testament to the company’s strategic vision and operational expertise. With its strong portfolio of assets and a focus on sustainable development, Vaalco is well-positioned to navigate the evolving energy landscape and deliver returns for its shareholders. As the company continues to explore and develop the CI-705 block, it remains an attractive investment opportunity in the oil and gas industry.