VAALCO Energy, Inc. (锟絍aalco锟� or the 锟紺ompany锟�) 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 (锟絎I锟�) barrels of oil equivalent per day (锟紹OEPD锟�), at the top of its guidance range of 20,800 to 22,200 WI BOEPD;
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锟絪 capital programs with no draws against the Company锟絪 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;
Encountered high-quality reservoir in the ET-15 well in line with initial estimates;
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 (锟紽PSO锟�) for the Baobab field remains on track to leave the Dubai dry dock in early February to sail back to Cote d锟絀voire; 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锟絪 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锟絪 Chief Executive Officer, commented, 锟絎e 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.锟�
锟絎e 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 C锟絫e d锟絀voire, 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.锟�