REG - Vaalco Energy Inc - Agreement to divest non-core asset

VAALCO EnergyAnnouncement

05/02/2026 07:02

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RNS Number : 7875R  Vaalco Energy Inc  05 February 2026

 

THIS RELEASE CONTAINS INSIDE INFORMATION

VAALCO ENERGY, INC. ANNOUNCES AGREEMENT TO DIVEST NON-CORE ASSET

 

HOUSTON - February 5, 2026 - VAALCO Energy, Inc. (NYSE: EGY, LSE: EGY)
("Vaalco" or the "Company") today announced that it had entered into an
agreement for the sale of all of its non-core producing properties in Canada
to a third party for approximately $35.0 million Canadian Dollars (USD $25.6
million), subject to customary closing adjustments (the "Canadian Asset
Sale"). The Canadian properties current working interest ("WI") production is
approximately at 1,850 barrels of oil equivalent per day ("BOEPD"). The
effective date of the Canadian Asset Sale is February 1, 2026, and it is
expected to close within the next 30 days, subject to satisfaction of the
customary closing conditions.

 

George Maxwell, Vaalco's Chief Executive Officer, commented, "Over the past
several years, we have worked to increase liquids production in Canada,
improve operational and drilling efficiencies, drilled some successful wells
and generated $82 million Canadian Dollars (USD $64 million) in operational
cash flow since our acquisition. While we believe that the Canadian assets are
solid, we have decided to focus on our core assets with significant drilling
campaigns and continued upside. With all of the recent successes in our assets
and continued large scale drilling campaigns underway or planned in those
areas, we determined that now was the right time to sell.  This non-core
asset sale for $35.0 million Canadian Dollars is equal to 2.7x 1  (#_ftn1) of
our trailing 12 months operational cash flow and does not impact our borrowing
base which allows us to focus on core opportunities. We are excited about the
future and believe that Vaalco has many high-quality assets with significant
drilling and development opportunities that we expect to generate meaningful
value for our shareholders for many years to come."

About Vaalco

Vaalco, founded in 1985 and incorporated under the laws of Delaware, is a
Houston, Texas, USA based, independent energy company with a diverse portfolio
of production, development and exploration assets across Gabon, Egypt, Côte
d'Ivoire, Equatorial Guinea and Nigeria.

For Further Information

 Vaalco Energy, Inc. (General and Investor Enquiries)  +00 1 713 543 3422
 Website:                                              www.vaalco.com

 Al Petrie Advisors (US Investor Relations)            +00 1 713 543 3422
 Al Petrie / Chris Delange

 Burson Buchanan (UK Financial PR)                     +44 (0) 207 466 5000
 Ben Romney / Barry Archer                             VAALCO@buchanan.uk.com

Forward Looking Statements

This press release includes "forward-looking statements" within the meaning of
Section 27A of the Securities Act of 1933, as amended and Section 21E of the
Securities Exchange Act of 1934, as amended, which are intended to be covered
by the safe harbors created by those laws and other applicable laws and
"forward-looking information" within the meaning of applicable Canadian
securities laws(collectively, "forward-looking statements"). Where a
forward-looking statement expresses or implies an expectation or belief as to
future events or results, such expectation or belief is expressed in good
faith and believed to have a reasonable basis. All statements other than
statements of historical fact may be forward-looking statements. The words
"anticipate," "believe," "estimate," "expect," "intend," "forecast,"
"outlook," "aim," "target," "will," "could," "should," "may," "likely," "plan"
and "probably" or similar words may identify forward-looking statements, but
the absence of these words does not mean that a statement is not
forward-looking. Forward-looking statements in this press release include, but
are not limited to, statements relating to (i) estimates of future drilling,
production, sales and costs of acquiring crude oil, natural gas and natural
gas liquids; (ii)expectations regarding the completion and timing of the
Canadian Asset Sale, the satisfaction of customary closing conditions related
to the Canadian Asset Sale, and the proceeds that the Company expects to
receive from the Canadian Asset Sale; (iii) expectations regarding future
exploration and the development, growth and potential of Vaalco's operations,
project pipeline and investments, and schedule and anticipated benefits to be
derived therefrom; (iv) expectations regarding future acquisitions,
investments or divestitures; (v)  expectations of future balance sheet
strength; and (vi) expectations of future equity and enterprise value.

Such forward-looking statements are subject to risks, uncertainties and other
factors, which could cause actual results to differ materially from future
results expressed, projected or implied by the forward-looking statements.
These risks and uncertainties include, but are not limited to: risks relating
to any unforeseen liabilities of Vaalco; the ability to generate cash flows
that, along with cash on hand, will be sufficient to support operations and
cash requirements; risks relating to the timing and costs of completion for
scheduled maintenance of the FPSO servicing the Baobab field; and the risks
described under the caption "Risk Factors" in Vaalco's most recent Annual
Report on Form 10-K.

Any forward-looking statement made by Vaalco in this press release is based
only on information currently available to Vaalco and speaks only as of the
date on which it is made. Except as may be required by applicable securities
laws, Vaalco undertakes no obligation to publicly update any forward-looking
statement, whether written or oral, that may be made from time to time,
whether as a result of new information, future developments or otherwise.

Inside Information

This announcement contains inside information as defined in Regulation (EU)
No. 596/2014 on market abuse which is part of UK domestic law by virtue of the
European Union (Withdrawal) Act 2018 ("MAR") and is made in accordance with
the Company's obligations under article 17 of MAR. The person responsible for
arranging the release of this announcement on behalf of Vaalco is Matthew
Powers, Corporate Secretary of Vaalco.

 1  (#_ftnref1) Based on 12-month unaudited operational cash flow of
approximately $9.7 million USD for the Canadian assets for the period ended
December 31, 2025.

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