VAALCO Energy, Inc. Announces Encouraging Operational Update
Rhea-AI Summary
VAALCO Energy (NYSE: EGY) reported operational progress in Gabon and Cote d’Ivoire on Feb 24, 2026. In Gabon the Etame 15H-ST was drilled, completed and placed on production with a 250-meter lateral and stabilized flow of ~2,000 gross BOPD at a 38% water cut.
In Cote d’Ivoire Vaalco was confirmed operator with a 60% working interest in the Kossipo field, estimated at ~102 MMBOE 2C resources (293 MMBOE in place), with an FDP expected in H2 2026 and the Baobab FPSO due to return by late March 2026.
Positive
- Etame 15H-ST stabilized at ~2,000 gross BOPD
- 250 meters of net pay in high-quality Gamba sands
- 60% working interest and operator role in Kossipo field
- Estimated 102 MMBOE 2C resources (293 MMBOE in place) at Kossipo
- Baobab FPSO expected to return and start production in Q2 2026
Negative
- 38% water cut on Etame 15H-ST, reducing net recoverable oil rate
Key Figures
Market Reality Check
Peers on Argus
EGY fell 2.14% with several E&P peers also lower: SD -3.46%, OBE -4.51%, REPX -2.44%, VTLE -1.16%, while TBN gained 3.36%. Mixed but generally weak peer action points more to stock- and oil-beta-driven trading than a clear sector-wide rotation.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Feb 17 | Dividend declaration | Positive | -1.6% | Announced Q1 2026 cash dividend and highlighted 17th consecutive payout. |
| Feb 12 | Investor outreach | Positive | -4.8% | Non-deal roadshow and updated presentation on Baobab FPSO and divestiture. |
| Feb 05 | Asset divestiture | Positive | -11.3% | Sale of non-core Canadian assets at 2.7x trailing cash flow. |
| Jan 15 | Ops/financial update | Positive | +5.8% | Positive 2025 operations, cash build, Gabon drilling and receivables progress. |
| Dec 09 | Drilling program start | Positive | +2.3% | Spud of first well in Phase Three drilling offshore Gabon. |
Recent history shows a tendency for the stock to trade down on several positive corporate updates, with only some operational/financial releases aligning positively.
Over the past few months, VAALCO has focused on operational execution and portfolio reshaping. A Dec 9 update marked the spud of the Phase Three Gabon program, followed by a Jan 15 operational and financial update that drew a positive price reaction. In early February, the company agreed to divest Canadian non-core assets and later outlined an investor roadshow, both met with negative moves. A Feb 17 dividend declaration also coincided with modest weakness, framing today’s Gabon and Côte d’Ivoire progress within an active strategic pivot.
Market Pulse Summary
This announcement underscores meaningful operational momentum for VAALCO, with the Etame 15H-ST well stabilizing at about 2,000 BOPD and a 57% success probability at the West Etame exploration prospect. In Côte d’Ivoire, operatorship and a 60% working interest in Kossipo, with 102 MMBOE 2C and 293 MMBOE in place, highlight longer-term growth potential. Investors may track the Baobab FPSO’s expected late-March return and the planned 2026 FDP to gauge execution on these opportunities.
Key Terms
working interest financial
net pay technical
floating production storage and offloading vessel technical
FPSO technical
AI-generated analysis. Not financial advice.
HOUSTON, Feb. 24, 2026 (GLOBE NEWSWIRE) -- VAALCO Energy, Inc. (NYSE: EGY, LSE: EGY) (“Vaalco” or the “Company”) announced positive operational updates in Gabon and Cote d’Ivoire. The Company provided an update on its Gabon drilling program, including solid initial well results on the Etame 15H-ST well and the spudding of the next well. Additionally, the Company was confirmed as operator with a
Gabon Drilling Highlights
- Successfully drilled, completed and placed on production the Etame 15H-ST development well in the 1V block of the Etame field, with a lateral of 250 meters of net pay in high-quality Gamba sands near the top of the reservoir;
- Stabilized flow rate of approximately 2,000 gross barrels of oil per day (“BOPD”) with a
38% water cut, through a 42/64 choke and ESP at 54 Hz, confirming expectations from the ET-15P pilot well results; - Actively managing the well to stabilize pressure and manage the reservoir;
- Stabilized flow rate of approximately 2,000 gross barrels of oil per day (“BOPD”) with a
- West Etame step out exploration well spudded in mid-February;
- Drilling the well from the S1 slot on the Etame platform Etame West (ET-14P) exploration prospect has a
57% chance of geologic success and is expected to reach the target zone by mid-March; and - On a success, the exploration prospect would add meaningful production and reserves to Vaalco’s 2026 year-end.
- Drilling the well from the S1 slot on the Etame platform Etame West (ET-14P) exploration prospect has a
Cote d’Ivoire Highlights
- Confirmed as operator with a
60% working interest in the Kossipo field on the CI-40 Block with a field development plan (“FDP”) expected to be completed in second half of 2026;- New ocean bottom node (“OBN”) seismic data driving and derisking Vaalco’s updated evaluation and development plan;
- Estimated Gross 2C resources of approximately 102 million barrels of oil equivalent (“MMBOE”) and 293 MMBOE in place, located southwest of the Baobab field;
- Discovered in 2002 with the Kossipo-1X well and later appraised in 2019 with the Kossipo-2A well (tested at over 7,000 BOPD); and
- Updated arrival of Baobab Ivorien (formerly MV10) Floating Production Storage and Offloading Vessel (“FPSO”) as it is currently off the East coast of Africa and is expected to return to offshore Cote d’Ivoire by late March.
George Maxwell, Vaalco’s Chief Executive Officer, commented, “We have begun 2026 with some very meaningful events that are positioning Vaalco to deliver expected
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 |
| 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 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 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 filed with the SEC on March 17, 2025 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.
Oil and Natural Gas Reserves
This press release contains crude oil and natural gas metrics which do not have standardized meanings or standard methods of calculation as classified by the Securities and Exchange Commission (SEC) and therefore such measures may not be comparable to similar measures used by other companies. Such metrics have been included herein to provide readers with additional measures to evaluate Vaalco; however, such measures may not be reliable indicators of future performance. The SEC requires United States oil and gas reporting companies, in their filings with the SEC, to disclose only proved reserves after the deduction of royalties and production due to others but permits the optional disclosure of probable and possible reserves in accordance with SEC definitions. Vaalco uses terms in this press release, including “2C,” that SEC guidelines strictly prohibit Vaalco from including in its SEC filings. 2C is a best estimate scenario of “contingent resources”; that is, quantities of petroleum potentially recoverable from known accumulations by the application of development projects not currently considered to be commercial owing to one of more contingencies. Prospective resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. These estimates are by their nature more speculative than estimates of proved, probable and possible reserves that meet the SEC’s definitions of such terms and are subject to substantially greater risk of being realized.
Management uses 2C resources as a measurement of operating performance because it assists management in strategic planning, budgeting and economic evaluations. Management believes that the presentation of these metrics is useful to its international investors, particularly those that invest in companies trading on the London Stock Exchange, in order to better compare reserve information to other London Stock Exchange-traded companies that report similar measures. However, these metrics should not be used as a substitute for proved reserves calculated in accordance with the definitions prescribed by the SEC. In evaluating Vaalco’s business, investors should rely on Vaalco’s SEC proved reserves and other oil and natural gas disclosures included in Vaalco’s latest Form 10-K and other reports and filings with the SEC and consider 2C resources only supplementally.
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
What production did VAALCO (EGY) report from the Etame 15H-ST well in February 2026?
What is VAALCO's (EGY) stake and plan for the Kossipo field on CI-40?
How large are the Kossipo resources VAALCO (EGY) disclosed in Feb 2026?
When will the Baobab FPSO return and resume production according to VAALCO (EGY)?
What is the geological success chance for VAALCO's (EGY) West Etame exploration well?
