23 August 2015, News Wires – Azonto Petroleum has announced that it has completed the sale of its 35 percent stake in Vioco Petroleum Limited, to Vitol E&P Limited, for $4 million.
The company announced plans of the sale in July and received shareholder approval on August 17, 2015. Azonto’s sale of associated wellhead drilling equipment in Cote d’Ivoire, for an additional $1.1 million, has not yet been completed. Following the sale, the company’s cash and cash equivalents is approximately $4.8 million.
Vioco holds an 87 percent working interest in, and is the operator of, the CI-202 Block in Cote d’Ivoire, within which the Gazelle project is located. Vitol E&P Limited already owned 65 percent of the shares in Vioco, prior to the completion of the deal.
In a previous company release, Azonto claimed that the increased cost growth experienced by the Gazelle project in recent months, which resulted in delays, was one of the reasons for the planned sale of its asset, as was the “increasingly challenging” oil and gas sector environment.