VAALCO Energy, Inc. reported positive operational updates from its ongoing drilling campaigns in offshore Gabon and onshore Egypt, highlighting strong initial production rates from new development wells. The Ebouri-5H well in Gabon achieved an initial flow rate exceeding 8,000 gross barrels of oil per day (BOPD), or 4,700 BOPD net to VAALCO, with very low water cut. In Egypt, the HE-9 development well, the first completed in the 2026 program, produced at an initial rate of 529 gross BOPD, surpassing pre-drill expectations.

The Ebouri-5H well was successfully drilled, completed, and placed on production at the top of the structure, featuring a lateral of 300 meters of net pay in high-quality Gamba sands. Following this success, the company has mobilized the rig to the SEENT platform to drill the ETBNM-3 development well. This well is planned as a directionally drilled slant well adjacent to the GMF-1X discovery well, targeting gas and condensate resources in the Dentale D15 reservoir.

Natural gas produced from a successful well at the SEENT platform will be utilized for operational purposes in the field. This initiative is intended to significantly reduce costs associated with higher-priced diesel, which is currently transported to the field by vessel. The company aims to continue adding production and reserves through the remainder of its Gabon drilling campaign.

In Egypt, the HE-9 well encountered 26 meters of net pay in the Asl B reservoir. The success of the 2025 drilling campaign, including captured efficiencies and accelerated technical subsurface evaluation, has led the company to drill additional wells in 2026. The HE-9 well was completed and placed on production in early June.

George Maxwell, Chief Executive Officer of VAALCO, expressed satisfaction with the continued positive results from the Gabon drilling campaign and the strong initial production rates from the Egypt program. He noted that with the Baobab field successfully restarted and ongoing successes in both regions, the company believes the remainder of 2026 will be profitable. VAALCO remains focused on executing its organic capital programs to drive meaningful growth and shareholder value.

Operational Results Summary

VAALCO Energy, Inc. has resumed production at the Baobab field on the CI-40 block offshore Côte d'Ivoire following the successful refurbishment of the Baobab Ivoirien Floating Production Storage and Offloading vessel. The restart marks the return of operations after a planned nine-month refurbishment in Dubai, with the FPSO returning to Côte d'Ivoire in early Q2 2026. The company holds the CI-40 block license extended through 2038.

Operational Restart and Timeline

The FPSO at Baobab ceased hydrocarbon operations in January 2025 in line with the project timeline. After the refurbishment, the vessel was moored into position and re-connected to the field infrastructure. Production has resumed from four producing wells, with the remaining three producers expected to come online shortly. The field is currently performing in line with Vaalco's expectations.

Future Development Plans

The refurbishment was undertaken to extend the life of the vessel and ensure its long-term operational capacity. A significant development drilling program at Baobab is planned to begin in the second half of 2026. The Phase 5 drilling program is expected to include four producers, two to three injectors, and two workovers.

Strategic Outlook

George Maxwell, Vaalco's Chief Executive Officer, highlighted the company's progress in the region. "We are excited that the Baobab field on the CI-40 block offshore Côte d'Ivoire has restarted production in line with our projected timeline," Maxwell said. He noted that the company had no assets in Côte d'Ivoire in early 2024 and has since developed a strong position with development and exploration potential. Vaalco remains focused on execution and driving growth through its organic capital programs.