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ACQUISITIONS
 3 Months Ended
Mar. 31, 2025
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]  
ACQUISITIONS ACQUISITIONS
Acquisition of Interest in CI-705 Block
In March 2025, the Company farmed into the CI-705 block offshore Côte d’Ivoire. The Company is the operator of the CI-705 block with a 70% working interest and a 100% paying interest through a commercial carry arrangement and is partnering with two other parties. The CI-705 block is located in the Tano basin, west of the Company's CI-40 Block, where the Baobab and Kossipo oil fields are located. The total amount of acquisition costs for this transaction is approximately $3.0 million.
FPSO Acquisition
In February 2025, the Company, through the joint operating agreement operator, completed the acquisition of the Baobab floating, production, storage and offloading vessel (the “Baobab FPSO”) in Côte d'Ivoire for a total purchase price of $20.0 million, or approximately $5.5 million net cost to the Company.

Svenska Acquisition

On April 30, 2024, the Company completed the acquisition of all of the issued shares in the capital of Svenska Petroleum Exploration Aktiebolag, a company incorporated in Sweden (“Svenska”) for a net adjusted purchase price of $40.2 million (the “Svenska Acquisition”). The Purchase Price was funded with $40.2 million of Vaalco’s cash-on-hand. Cash acquired in the business combination included $31.8 million of cash and cash equivalents as well as restricted cash of $8.8 million which nets to $0.4 million cash received on the business combination within the purchase price allocation.

The Svenska Acquisition qualified as a business combination and was accounted for using the acquisition method of accounting. The following tables summarize the cash paid for the purchase price and the final purchase price allocation of the acquisition consideration.
April 30, 2024Measurement Period AdjustmentApril 30, 2024
(As Adjusted)
(in thousands)
Purchase Consideration
Cash$40,166 $— $40,166 
Total purchase consideration$40,166 $— $40,166 
 
April 30, 2024Measurement Period AdjustmentApril 30, 2024
(As Adjusted)
(in thousands)
Assets acquired:
Cash and cash equivalents$31,789 $466 $32,255 
Other receivables, net830 — 830 
Crude oil inventory14,981 — 14,981 
Prepayments and other409 — 409 
Crude oil, natural gas and NGLs properties and equipment, net100,188 6,901 107,089 
Restricted cash8,788 — 8,788 
Other LT receivables33 — 33 
Deferred tax asset28,153 (12,095)16,058 
Total assets acquired185,171 (4,728)180,443 
Liabilities assumed:
Accounts payable(2,506)— (2,506)
State oil liability(19,447)— (19,447)
Accrued tax settlement(8,788)— (8,788)
Accrued accounts payable invoices(21,692)— (21,692)
Accrued liabilities and other(19,083)(301)(19,384)
Asset retirement obligations(15,694)(11,617)(27,311)
Deferred tax liability(37,897)10,280 (27,617)
Total liabilities acquired(125,107)(1,638)(126,745)
Bargain purchase gain(19,898)6,366 (13,532)
Total purchase price$40,166 $— $40,166 

All assets and liabilities associated with Svenska’s interest in the producing Baobab field as well as the non-producing
discovery located offshore of Nigeria, including crude oil and natural gas properties, asset retirement obligations and working capital items, were recorded at their estimated fair value. The crude oil and natural gas properties and asset retirement obligations were valued using an income approach, which are considered Level 3 fair value estimates. The Company used estimated future crude oil prices as of the closing date, April 30, 2024, to apply to the estimated reserve quantities acquired and market participant assumptions to the estimated future operating and development costs to arrive at the estimates of future net revenues. The future net revenues were discounted using the Company’s weighted average cost of capital to determine the fair value at closing. The valuations to derive the purchase price included the use of both proved and unproved categories of reserves, expectations for timing and amount of future development and operating costs, projections of future rates of production, and risk adjusted discount rates. Other estimates were used by the Company to determine the fair value of certain assets and liabilities. The purchase price allocation was finalized in the fourth quarter of 2024. As a result of comparing the purchase price to the fair value of the assets acquired and liabilities assumed, an initial $19.9 million bargain purchase gain was recognized as of the close date. The bargain purchase gain is primarily attributable to a stronger forward pricing curve for oil and gas reserves on the date of the closing of the acquisition than was used for the purposes of the negotiations of the purchase price paid for Svenska.
In 2024, the Company made adjustments to the amounts assigned to the net assets acquired based on new information obtained about facts and circumstances that existed as of the Svenska Acquisition date. As a result, the bargain purchase gain was reduced by $6.4 million.

The unaudited pro forma results presented below have been prepared to give effect to the Svenska Acquisition discussed above on the Company’s results of operations for the three months ended March 31, 2024, as if the acquisition had been consummated on January 1, 2024. The unaudited pro forma results do not purport to represent what the Company’s actual results of operations would have been if the Svenska Acquisition had been completed on such date or to project the Company’s results of operations for any future date or period.
Three Months Ended March 31,
2024
(in thousands)
Pro forma (unaudited)
Crude oil, natural gas and natural gas liquids sales$131,680 
Operating income$45,425 
Net income$13,822 
Basic net income per share:
Net income$13,822 
Net income per share$0.13 
Basic weighted average shares outstanding103,659 
Diluted net income per share:
Net income$13,822 
Net income per share$0.13 
Diluted weighted average shares outstanding104,541