REG - Vaalco Energy Inc - Operational and Financial Update

VAALCO EnergyAnnouncement

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RNS Number : 0357P  Vaalco Energy Inc  15 January 2026

 

THIS RELEASE CONTAINS INSIDE INFORMATION

VAALCO ENERGY, INC. PROVIDES POSITIVE OPERATIONAL AND FINANCIAL UPDATE

 

HOUSTON - January 15, 2026 - VAALCO Energy, Inc. (NYSE: EGY, LSE: EGY)
("Vaalco" or the "Company") today provided an operational and financial update
including production and sales volumes for 2025, a successful drilling update
in Gabon and Egypt, positive accounts receivables update and its increased
cash at bank as of December 31, 2025.

 

Highlights and Key Items:

 

•      Recorded full year 2025 sales volumes of approximately 22,100
working interest ("WI") barrels of oil equivalent per day ("BOEPD"), at the
top of its guidance range of 20,800 to 22,200 WI BOEPD;

o  Produced approximately 21,150 WI BOEPD for full year 2025, at the midpoint
of its full year guidance range;

•      Increased cash at bank by nearly $35 million to $58.8 million at
December 31, 2025, while continuing to fund Vaalco's capital programs with no
draws against the Company's reserve based lending facility ("RBL") in the
fourth quarter;

•      Continued strong collection of receivables in Egypt with all
receivables now largely on a current basis;

•      Successful start to the Phase Three Drilling Program offshore
Gabon;

o  Encountered high-quality reservoir in the ET-15 well in line with initial
estimates;

o  Second pilot hole, the ET-15P-ST1, encountered multiple sand intervals
with detailed analysis and volumetric assessment underway to confirm
commercial viability;

•      Confirmed Baobab Ivorian (formerly MV10) Floating Production
Storage and Offloading Vessel ("FPSO") for the Baobab field remains on track
to leave the Dubai dry dock in early February to sail back to Cote d'Ivoire;
and

•     Completed successful 2025 Egyptian drilling program, which
included a successful exploration well in the H-Field, Eastern Desert, that
opens a new development area with an initial flow rate of approximately 450
BOEPD.

 

Gabon Phase Three Drilling Program Update

 

Vaalco's Phase three Drilling Program in Gabon commenced in the fourth quarter
of 2025 with the drilling of two pilot wells in the Etame field. The first
well, ET-15P, was drilled to a total depth of 2,397 meters in the western
Etame-1V fault block, targeting the Gamba and encountered high-quality
reservoir sands consistent with pre-drill projections. Pressure data confirmed
strong communication with nearby producing wells, supporting the presence of a
connected and productive reservoir system with initial estimates of between
2.4 and 3.2 million barrels of oil in place. Additionally, the well
successfully evaluated the deeper Dentale formation, where good-quality,
oil-bearing sands were encountered confirming the continuity of the original
oil-water contact across this part of the field and further strengthening the
development potential of the Etame asset. The second pilot well, ET-15P-ST1,
was drilled to a depth of 2,175 meters on the western side of the main Etame
fault block, also targeting the Gamba, and encountered multiple high-quality
sand intervals, delivering approximately nine meters of net reservoir and four
meters of net pay across two sand lobes. Detailed analysis and volumetric
assessment are underway to determine future commercial viability. Vaalco is
currently drilling the ET-15P, a horizontal production sidetrack, confirmed by
the first pilot hole, which the Company expects to have on production later in
the first quarter.

 

George Maxwell, Vaalco's Chief Executive Officer, commented, "We completed
another successful year in 2025 and have started 2026 with some positive
momentum as we continue to execute on our major projects. Our track record of
consistently delivering results at or above guidance continued in Q4 2025 with
very strong sales and solid production performance. We repeatedly raised
production and sales guidance in 2025 and continued to deliver on those
increased guidance ranges. We were able to fund all cash capital expenditures,
pay the quarterly dividend and raise our cash position at year-end by nearly
$35 million without any draws against our RBL in Q4 2025, closing the year
with a net debt position of just over $1 million. This was driven by strong
sales and continued strong collection from our receivables, where all of our
aged receivables are now current. We are particularly pleased with the
progress our team have made in our Egyptian receivables in 2025. At the start
of 2025 our outstanding Accounts Receivable for EGPC amounted to $113 million,
and at year end 2025 this balance had fallen to $31 million even after
invoicing over $129 million in revenue for the year. We collected over $210
million in 2025, boosted by an industry payment of $40 million received in the
last week of the year. We are pleased to be working with strong partners and
host nations that continue to be very positive toward capital investment in
oil and gas projects."

 

"We are encouraged with the successful start of our Phase Three Drilling
Program offshore Gabon. As planned, we have drilled two pilot holes and
encountered high-quality sands in both pilot holes. The FPSO project at Cote
d'Ivoire remains on schedule as we are forecasting the Baobab Ivorian to leave
Dubai in early February to sail back to the Baobab field to resume production
in the second quarter. As we enter 2026, with major projects underway in both
Gabon and Côte d'Ivoire, we are looking to continue to drive meaningful
growth that we believe will translate into value for our shareholders for the
remainder of the decade."

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, Nigeria and Canada.

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 timing and costs of completion
for scheduled maintenance of the FPSO servicing the Baobab field; (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.

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