[Angola] VAALCO pays $4.5 million settlement fee to ANPG for offshore block termination
VAALCO Energy announced that the Company has paid $4.5 million to Angola National Agency of Petroleum, Gas, and Biofuels (ANPG), as National Concessionaire, under the terms of the previously announced Settlement Agreement executed earlier this year that finalized the termination of VAALCO’s rights, liabilities and outstanding obligations for Block 5/06 in Angola.
The Settlement Agreement provided for a cash payment of $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 recognized in the first quarter of 2019.
Cary Bounds, VAALCO’s Chief Executive Officer, 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. Finalizing 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.”