VAALCO Energy, the oil and gas company specialising in African projects, has announced a new strategic investment in Block CI-705, located off the coast of Côte d'Ivoire. By becoming the operator of this "significantly prospective" block, VAALCO is consolidating its position in a region rich in energy potential. The company has acquired a 70% interest in the block, with a 100% paying interest via a commercial carry agreement, in partnership with Ivory Coast Exploration Oil & Gas and the national company PETROCI.
Located in the prolific Tano Basin, Block CI-705 covers an area of around 2,300 km², some 70 kilometres west of Block CI-40, where VAALCO already operates the Baobab and Kossipo oil fields. It is also 60 kilometres west of Eni's recent Calao discovery, making the area even more attractive. With water depths ranging from zero to 2,500 metres and only three wells drilled to date, the block remains underexplored, suggesting untapped potential.
VAALCO has invested $3 million to secure this interest, an amount the company considers modest given the prospects offered. "We believe that Block CI-705 is ideally located in a proven oil system, close to existing infrastructure and a fast-growing domestic market, with attractive upside potential," said George Maxwell, Chairman and CEO of VAALCO.
Under the agreement, VAALCO will lead the operations with a 70% working interest and will fully fund the initial phases, including reprocessing and interpretation of the seismic data, as well as the potential drilling of two exploration wells. "Our preliminary assessment indicates prospects for both oil and natural gas," added Maxwell. "We anticipate detailed and integrated geological analysis to refine our understanding of the prospectivity of the block."
This new investment builds on VAALCO's track record of generating value through strategic and profitable acquisitions. The proximity of the CI-705 block to existing infrastructure and its position in a region with high energy potential make it a key asset for the company's future in Côte d'Ivoire.
With this acquisition, VAALCO is strengthening its footprint in the Tano Basin, an area renowned for its oil and gas resources. The collaboration with Ivory Coast Exploration Oil & Gas and PETROCI also demonstrates the company's commitment to working hand-in-hand with local partners, while supporting the economic development of Côte d'Ivoire.
As energy demand continues to grow in West Africa, VAALCO Energy is positioning itself as a major player, ready to exploit the opportunities offered by Block CI-705. The next steps, notably seismic analysis and exploratory drilling, will be crucial in confirming the potential of this new venture.