VAALCO ENERGY INC /DE/ 8-K

What Happened
VAALCO Energy, Inc. (through its wholly‑owned indirect subsidiary VAALCO Energy Canada, Inc.) announced on Feb. 4, 2026 that it entered into an Asset Purchase and Sale Agreement to sell substantially all of its Canadian land assets and related liabilities to Petrus Resources Corp., with Petrus Resources LTD. providing a guaranty for certain buyer obligations. The buyer agreed to pay approximately CAD 35 million (USD $25.6 million) in cash, subject to customary closing adjustments. The company issued a press release on Feb. 5, 2026 and filed the 8‑K on Feb. 10, 2026; the transaction is expected to close within about 30 days, subject to customary closing conditions.

Key Details

• Asset Purchase Agreement dated February 4, 2026 between VAALCO Energy Canada, Inc. and Petrus Resources Corp.; Petrus Resources LTD. is guarantor for specified buyer obligations.
• Purchase price: ~CAD 35 million (USD $25.6 million), cash, subject to customary closing adjustments.
• Transaction covers the Canadian land assets and related liabilities acquired in VAALCO’s October 2022 business combination with TransGlobe Energy Corporation.
• VAALCO furnished a press release (Feb. 5, 2026) that includes unaudited operational cash flow for the Canadian assets for the year ended Dec. 31, 2025; the Asset Purchase Agreement exhibit contains customary reps, warranties, indemnities and certain redactions.

Why It Matters
This is a material divestiture of VAALCO’s Canadian assets that will remove the related assets and liabilities from the company and provide near‑term cash proceeds of roughly USD $25.6M (before closing adjustments). For investors, the deal affects the company’s asset base and future operating cash flows from Canada and may improve liquidity or be redirected to other priorities; VAALCO has publicly disclosed the transaction under Regulation FD and provided unaudited operational cash flow information for the sold assets.