By Prosper Mugabe, in Abidjan

Houston based VAALCO Energy has entered into a new revolving credit facility with several African financial institutions.

The initial commitment is of $190Million with the ability to grow to $300Million, led by The Standard Bank of South Africa Limited, Isle of Man Branch with other participating banks and financial partners.

The funding is secured with Vaalco’s Gabon, Egypt and Côte d’Ivoire assets, which collectively delivered full year 2024 sales volumes of over 20,000 to 24,600 working interest (WI) barrels of oil equivalent per day (“BOEPD”).

“This new facility, which is subject to customary administrative conditional precedents, replaces the Company’s existing undrawn revolving credit facility that was provided by Glencore Energy UK Ltd”, Vaalco says in a statement.

The Company arranged the new facility primarily to provide short-term funding that may be needed from time-to-time to supplement its internally generated cash flow and cash balance as it executes its planned investment programs across its diversified asset base over the next few years.

Key terms include:

“Closing this new credit facility will supplement our internally generated cash flow and cash balance to assist in funding our robust organic growth projects,” said George Maxwell, Vaalco’s Chief Executive Officer. “With $190Million in initial commitment and the ability to grow to $300Million, this facility enables us to fund any short-term capital funding needs that may occur as we execute the significant growth projects across our assets over the next couple of years. We appreciate the support shown by our lending group which we believe affirms the strength of our diverse asset base. We are excited about the major projects that we have planned which are expected to deliver a step-change in organic growth across our portfolio.”