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Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
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VAALCO (EGY) Gets the Green Light for Block-P Development
VAALCO Energy Inc. (EGY - Free Report) and its partners have signed the final documents for the Joint Operating Agreement related to the Venus Block-P plan of development (“POD”), after receiving the Government of Equatorial Guinea’s approval. VAALCO is serving as the operator of the block with a 60% interest. The other partners in the project are state-owned GEPetrol and Atlas Petroleum International Ltd.
The Block P Production Sharing Contract outlines a 25-year development and production period from the date when the POD was approved. The POD was approved in 2022. The company will move to develop, operate and produce from the discovery, offshore Equatorial Guinea, in the next few years.
VAALCO will move forward with the Front-End Engineering Design study, which, upon completion, will lead to an economic Final Investment Decision (“FID”). The FID will facilitate the development of the Venus POD.
VAALCO Energy highlighted that its portfolio diversification efforts over the past two years have enhanced its capability to generate operational cash flows, while also growing its cash position and enabling it to remain free from bank debt. The company mentions that the Block P development will further enhance its robust portfolio by adding another valuable and strong producing asset to it.
The company plans to provide additional information about the development in its first quarter earnings release, which is scheduled in early May.
Zacks Rank and Key Picks
EGY currently holds a Zacks Rank #4 (Sell).
Some better-ranked stocks in the energy sector are Archrock Inc. (AROC - Free Report) , Energy Transfer LP (ET - Free Report) and Helmerich & Payne (HP - Free Report) . Archrock presently sports a Zacks Rank #1 (Strong Buy), while Energy Transfer and Helmerich & Payne carry a Zacks Rank #2 (Buy), each. You can see the complete list of today’s Zacks Rank #1 stocks here.
Archrock is an energy infrastructure company based in the United States, with a focus on midstream natural gas compression. It provides natural gas contract compression services and generates stable fee-based revenues.
Energy Transfer is a midstream player that owns and operates one of the most diversified portfolios of energy assets in the United States. Boasting a pipeline network extending more than 125,000 miles, its network spans more than 44 states. With a presence in all the major U.S. production basins, the company’s outlook seems positive.
Helmerich & Payne is primarily involved in the contract drilling of oil and natural gas, with operations in all major U.S. onshore basins, as well as in South America, Australia and the Middle East. In the past months, the company has secured eight new rig contracts with Saudi Aramco, thus expanding its presence in the Middle East. With plans to capitalize on unconventional drilling growth opportunities, the company’s outlook seems positive.