VAALCO Energy, Inc. Announces Positive Operational Updates

Overview

Vaalco announced operational results and program updates from its West African assets. The release covers the concluded Phase 3 drilling campaign in offshore Gabon, initial production rates from the ETSEM-3H development well, rig demobilization, and commencement of the Baobab Phase 5 drilling campaign offshore Côte d’Ivoire. The company framed forward-looking timing for additional producers and expected production increases in 2027.

Sources: S1

Offshore Gabon: ETSEM-3H and Phase 3 completion

Vaalco reported the ETSEM-3H development well was drilled, completed and placed on production in an attic position within the SE Etame field and described the lateral wellbore as having 300 meters of net pay in high-quality Gamba reservoir sands. The company reported a stabilized initial flow rate of approximately 2,000 gross BOPD, 1,140 BOPD net to Vaalco, and stated the Phase 3 drilling program is complete and the drill rig has been demobilized from the field.

Sources: S1

Offshore Côte d’Ivoire: Baobab Phase 5

Vaalco said Baobab Phase 5 drilling operations have commenced with batch-setting of top-holes by the operator. The company described the plan to complete and sequentially place wells on production after top-hole sections are drilled and stated it anticipates the first producer well online near the end of 2026, which it said supports meaningful expected production growth in 2027.

Sources: S1

Why this may matter (inference)

The announced start-up of ETSEM-3H and the completion of the Phase 3 campaign remove near-term drilling activity from Gabon operations and provide an early production data point the company identifies as incremental supply. The commencement of Baobab Phase 5 establishes the company’s near-term development schedule for additional wells that the company links to expected production growth in 2027. These operational milestones are presented by the issuer as supporting its strategic focus on growing production and reserves.

Sources: S1

What remains uncertain

• The release contains forward-looking statements and expectations about future production timing and growth that the company identifies as subject to risks, uncertainties and other factors. The reported stabilized initial flow rate is an early production figure and the company notes that early production data may not be indicative of long-term performance.