VAALCO Energy, Inc. Announces Côte D'Ivoire Block CI-705 Update

The next exploration phase carries commitments to relinquish 25% of the block and drill a well by the end of 2028.

Rhea-AI Summary

VAALCO Energy (EGY) completed its first exploration phase at offshore Côte d’Ivoire Block CI-705 and received approval for the second phase.

The completed work covered evaluation and interpretation of existing seismic and well data. VAALCO became operator with a 70% working interest in March 2025. The block lies approximately 70 kilometers west of its CI-40 Block, which contains the Baobab and Kossipo oil fields.

The second phase requires further seismic reprocessing, relinquishment of 25% of the exploration block and drilling an exploration well by the end of 2028. VAALCO described the first-phase results as encouraging and sees exploration potential in structural and stratigraphic traps—different geological formations that can hold oil—in the Upper Cretaceous and Albian sections.

2 points · 0 major

MixediHow this balance works

How this balance works

Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance worksHow Sentiment works

0 major · 3 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate pointGovernment approval allows VAALCO to proceed to the Second Exploration Phase at CI-705.
• Minor pointFirst Exploration Phase completed, including evaluation and interpretation of existing seismic and well data.

Negative

• Moderate point. Forward-looking: it has not happened yet and may not happen.Exploration well must be drilled by the end of 2028 under the second-phase commitment.
• Minor point. Forward-looking: it has not happened yet and may not happen.25% of the exploration block must be relinquished under the Second Exploration Phase commitments.
• Minor point. Forward-looking: it has not happened yet and may not happen.Further seismic reprocessing is required under the Second Exploration Phase commitments.

Key Figures

Working interest: 70% Block relinquishment: 25% Exploration well deadline: By end of 2028

Working interest

70%

CI-705; Vaalco farmed in and became operator in March 2025

Block relinquishment

25%

Commitment for the Second Exploration Phase

Exploration well deadline

By end of 2028

Commitment for the Second Exploration Phase

Key Terms

working interest, seismic reprocessing, stratigraphic traps

3 terms

working interest technical

"with a 70% working interest"

The working interest is the percentage ownership one party holds in an oil or gas lease that gives them the right to a share of production and also the obligation to pay a proportional share of exploration, development and operating costs. Think of it like owning a slice of a cake but also agreeing to pay part of the bill to bake it: a larger working interest means bigger potential revenue when wells produce, but also larger exposure to costs and liabilities if things go wrong.

seismic reprocessing technical

"commitment includes further seismic reprocessing"

Seismic reprocessing is the set of data-processing steps applied to previously recorded seismic reflection data to produce improved images of the subsurface. It uses updated or different algorithms and parameter choices—for example noise filtering, amplitude corrections, velocity estimation and wavefield migration—to reduce noise, correct distortions and sharpen reflections without acquiring new field data. The result can change how geological layers, faults and potential reservoirs appear, but it is limited to improving the quality and interpretability of existing seismic records rather than generating new measurements.

stratigraphic traps technical

"including both structural and stratigraphic traps"

A stratigraphic trap is a type of subsurface hydrocarbon accumulation where changes in rock layers—such as a reservoir rock thinning out (pinch‑out), a change in depositional facies, an unconformity, or local diagenetic alteration—create a seal that prevents fluids from migrating, so oil or gas becomes trapped. Unlike structural traps, which rely on folding or faulting to form a closure, stratigraphic traps depend on the original or later changes in sedimentary layering and rock properties to provide both a porous reservoir and an adjacent non‑porous barrier.

AI-generated analysis. How Rhea-AI works. Not financial advice.

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google

Add on Google Not now

HOUSTON, Nov. 09, 2026 (GLOBE NEWSWIRE) -- VAALCO Energy, Inc. (NYSE: EGY, LSE: EGY) (“Vaalco” or the “Company”) announced completion of the First Exploration Phase work commitments and approval to proceed to the Second Exploration Phase at Block CI-705, offshore Côte d'Ivoire.

Highlights:

• In March 2025, Vaalco farmed into and became the operator of exploration license CI-705 located offshore Côte d'Ivoire with a 70% working interest;
  • CI-705 block is located in the prolific Ivoirien Basin and is approximately 70 kilometers to the west of Vaalco’s CI-40 Block, where the Baobab and Kossipo oil fields are located;
• Successfully completed the First Exploration Phase, which included the evaluation and interpretation of existing seismic and well data;
• Encouraged by the results of the First Exploration Phase, Vaalco chose to progress to the Second Exploration Phase and government approval has been granted;
  • Second Exploration Phase commitment includes further seismic reprocessing, relinquishing 25% of the exploration block and commitment to drill an exploration well by end of 2028.
    

George Maxwell, Vaalco’s Chief Executive Officer, commented, “We are pleased with the results of the First Exploration Phase and are excited to move into the Second Exploration Phase. We see encouraging prospectivity on the block in the play types proven throughout the Ivoirien Basin including both structural and stratigraphic traps in the Upper Cretaceous and Albian sections. Recent nearby discoveries are on trend with CI-705 and, provide additional validation of our play concepts and our view of the block’s prospectivity. Our continued success and organic project pipeline support Vaalco’s strategic focus on growing production, reserves and value for our shareholders.”

About Vaalco

Vaalco Energy Inc. is an African-focused independent energy company with a diversified portfolio of production, development and exploration assets in Gabon, Egypt, Côte d'Ivoire and Equatorial Guinea. The Company combines cash-generative production assets with development and exploration opportunities supported by existing infrastructure and established operating histories. 

Since 2021, Vaalco has transformed from a single-asset producer into a multi-country African operator through disciplined acquisitions, portfolio optimization and operational delivery. Led by an experienced management team with a proven track record of value creation, Vaalco combines disciplined capital allocation, shareholder returns and a visible, self-funded pathway to significantly increase production from resources already within its portfolio.

Vaalco is headquartered in Houston and listed on the New York Stock Exchange and the Main Market of the London Stock Exchange under the symbol EGY.

Vaalco’s Legal Entity Identifier (LEI) is 549300CFHFVIWB8M6T24.

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
Camarco (Financial PR)
Georgia Edmonds / Rebecca Waterworth (UK)	+44 20 3757 4980
Rosie Driscoll (US)	+00 1 771 241 3164

Forward Looking Statements

Information in 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 may 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 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; (iii) expectations regarding future acquisitions, investments or divestitures; (iv) expectations of future dividends; (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 related to early production data not being indicative of long-term performance; and the risks described under the caption “Risk Factors” in Vaalco’s most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q filed with the SEC.

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.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What exploration milestone did VAALCO Energy reach at Block CI-705?

VAALCO completed the First Exploration Phase and received government approval to enter the Second Exploration Phase. The completed work included evaluation and interpretation of existing seismic and well data.

What must VAALCO do in the second exploration phase at CI-705?

The second phase commits VAALCO to further seismic reprocessing, relinquishing 25% of the exploration block and drilling an exploration well by the end of 2028.