Houston-based VAALCO Energy Inc. filed updates with the U.S. Securities and Exchange Commission (SEC) regarding its $40.2 million acquisition of Svenska Petroleum Exploration, which closed April 30.

In the SEC filing, VAALCO reported net proved reserves of 16.9 MMboe (93% oil) as of Dec. 31, 2023. The standardized measure of those reserves totaled $195.5 million.

This results in VAALCO’s year-end 2023 pro forma SEC net proved reserves totaling 45.6 MMboe, a 59% increase from its reported year-end 2023 SEC net proved reserves of 28.6 MMboe.

Swedish E&P Svenska’s primary asset is a 27.39% non-operated working interest (WI) in the deepwater Baobab Field in Block CI-40, offshore Côte d’Ivoire.

When the acquisition was announced in February, it included Svenska’s estimated 1P WI CPR (competent person’s report) reserves of 13 MMboe (99% oil) as of Oct. 1, 2023. It also included total 2P WI CPR reserves of 21.7 MMboe (97% oil) as of Oct. 1, 2023.

Svenska’s 2P WI CPR reserves saw an estimated 22.5 MMboe as of Dec. 31, 2023, compared to Oct. 1, 2023.

Using the deal’s purchase price of $40.2 million, VAALCO paid approximately $2.37 per net proved barrel of reserves. VAALCO said the transaction was fully funded by cash on hand with no issuance of debt or equity.

“This strategic and highly cost-effective acquisition strategically expands our West African focus area with a sizeable producing asset that has significant upside potential and considerable future development opportunities in Côte d’Ivoire, a well-established and investment-friendly country,” said George Maxwell, VAALCO’s CEO.

Since Dec. 31, 2023, VAALCO said it worked with its third-party reserves auditors to calculate its SEC proved reserves and related standardized measure of discounted future net cash flows as of that date utilizing a flat SEC pricing assumption of $83.06/bbl of oil.

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