The Settlement Agreement provided for a cash payment of US$4.5 million from Vaalco to the National Concessionaire as well as the elimination of the receivable from Sonangol P&P that was related to joint-interest billings. The cash payment was made after the recent publishing of an executive decree from the Ministry of Mineral Resources and Petroleum. The financial impact of the Settlement Agreement was recognised in 1Q19.
Cary Bounds, Vaalco’s CEO, commented: “We are extremely pleased to have fulfilled all the terms of our Settlement Agreement to exit Angola and we offer our sincere gratitude to the National Concessionaire for their pragmatic approach to helping us reach this material milestone. Finalising the Settlement Agreement has removed considerable uncertainty over the financial impact of exiting Angola. As we prepare for our upcoming drilling campaign offshore Gabon, we are at an exciting juncture for the Company and remain wholly focused on delivering profitable growth and meaningful value for our shareholders.”
Read the article online at: https://www.oilfieldtechnology.com/offshore-and-subsea/22072019/vaalco-energy-finalises-exit-from-angola/