The share acquisition, on a pro-rata basis with its JV partners, once completed, will allow Nido to increase production at the Nido and Matinloc fields, which are located within the two blocks. Especially in Nido-B, where the company feels is capable of producing around two million barrels of recoverable oil.

“The second step in the process to increase production [following the share acquisition] will be to introduce an operating company who will fund production enhancement operations [and] negotiations are underway to farm out part of the equity acquired from Vaalco to an operating company,” said Nido in a statement.

“It is expected that an agreement will be finalised in the next few weeks,” added the company, which also said it and its partners are currently negotiating documentation with another party to develop Galoc field in SC-14.

Nido’s Executive Chairman, Charles Morgan, would not be drawn on the transaction price for the shares.