XML 21 R9.htm IDEA: XBRL DOCUMENT v3.25.2
ACQUISITIONS
 6 Months Ended
Jun. 30, 2025
Business Combination, Asset Acquisition, Transaction between Entities under Common Control, 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 total purchase price consideration was $40.2 million and was funded with 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.

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 purchase price allocation was finalized in the fourth quarter of 2024 and 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 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.

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)
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 
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 and six months ended June 30, 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 June 30,Six Months Ended June 30,
20242024
(in thousands)(in thousands)
Pro forma (unaudited)
Crude oil, natural gas and natural gas liquids sales$116,778 $248,458 
Operating income$(7,336)$38,091 
Net income$(5,842)(a)$9,316 
Basic net income per share:
Net income$(5,842)$9,316 
Net income per share$(0.06)$0.09 
Basic weighted average shares outstanding103,528 103,594
Diluted net income per share:
Net income$(5,842)$9,316 
Net income per share$(0.06)$0.09 
Diluted weighted average shares outstanding103,676 103,677
(a) The unaudited pro forma net income for the three and six months ended June 30, 2024 excludes a nonrecurring pro forma adjustment directly attributable to the Svenska Acquisition, consisting of a bargain purchase gain of $19.9 million.