TransGlobe Energy Shareholders Approve Vaalco Combination

Stockholders of TransGlobe Energy Corporation have approved the proposed strategic business combination with Vaalco Energy at a Special Meeting held on Friday last week.

To remind, Vaalco stockholders approved the combination at its special meeting of stockholders held on September 29, 2022.

“We are excited about this business combination and appreciate the strong support we received from both sets of stockholders. The combination of these two companies should build a business of scale, a stronger balance sheet, and a more material and diversified baseline of production that will underpin the combined company’s opportunities for success at a rate that would not be achievable alone.”

“There is significant inherent value within the combined portfolio, which should allow us to generate meaningful cash flow to fund increased shareholder dividends, share buy-backs, and potential supplemental shareholder returns at a rate that would not be achievable by either Vaalco or TransGlobe on a standalone basis, following the closing of the transaction,” George Maxwell, Vaalco Chief Executive Officer, stated.

TransGlobe and Vaalco entered into a definitive arrangement agreement in July 2022. Vaalco will acquire all of TransGlobe’s outstanding common shares in a stock-for-stock strategic business combination transaction valued at $307 million.

Under the agreement, Vaalco will acquire all the outstanding common shares of TransGlobe in a stock-for-stock combination. Following the merger, Vaalco stockholders will own approximately 54.5 percent and TransGlobe shareholders will have approximately 45.5 percent of the Combined Company.

The transaction will bring together two complementary businesses, with assets located in prolific and established basins in Egypt, Gabon, Equatorial Guinea, and Canada, with significant future growth potential.

The Combined Company will have an estimated 2022 mid-point production guidance of 19,100 boepd on a net revenue interest basis across Egypt, Gabon, and Canada and 24,400 boepd on a working interest basis.

It will also have proved (1P) reserves on a net revenue interest basis of 32 million boe and 41 million boe on a working interest basis and combined proved plus probable (2P) reserves on a net revenue interest basis of 51 million boe and 66 million boe on a working interest basis.

To contact the author, email bojan.lepic@rigzone.com