VAALCO Energy, Inc. Provides Operational Update for Ongoing Drilling Program in Offshore Gabon
Rhea-AI Summary
Vaalco Energy (NYSE: EGY, LSE: EGY) announced operational progress in its offshore Gabon drilling program. The Company drilled, completed and brought onstream the ETBNM-3 gas-supply well in the crestal North Tchibala structure from the Dentale D-15 reservoir, where reservoir properties exceeded pre-drill estimates and delivered over 10 meters of net pay.
The well is expected to supply gas for field operations, liftings and power, reducing reliance on higher-priced diesel. Vaalco also moved the rig on 27 July to the SEENT platform to drill the ETSEM-3PH pilot hole, designed to test the oil-water contact and Dentale potential before a planned 300-meter horizontal Gamba development well.
Positive
- ETBNM-3 gas well completed and on production in North Tchibala Dentale D-15 reservoir
- Reservoir quality above pre-drill estimates with over 10 meters of net pay
- Gas supply to replace higher-priced diesel expected to reduce operating and power costs
- Rig redeployed 27 July to drill ETSEM-3PH pilot and follow-on horizontal Gamba producer
Negative
- New ETBNM-3 gas well will not directly add production volumes or sales
- Shallower D-9 and D-12 intervals still under evaluation, commercial potential not yet defined
News Explained
The completed gas well changes field fuel economics rather than sales output; additional shallow-interval potential remains under evaluation.
The completed ETBNM-3 gas-supply well is now providing gas for field operations, liftings and power, but the company says it will not directly add production or sales; its immediate structural effect is replacing higher-priced diesel in those uses.
The company is still evaluating shallower D-9 and D-12 intervals that appear to contain wet-gas to light-oil pay, so any additional contribution from those intervals remains unresolved.
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Jun 23 | Investor roadshow | Neutral | -5.3% | Roadshow meetings and updated investor presentation were announced for prospective investors. |
| Jun 15 | Operational update | Positive | -0.7% | Gabon and Egypt wells reported production rates above expectations and strong reservoir pay. |
| Jun 09 | Production resumption | Positive | -2.4% | Baobab field production resumed after successful FPSO refurbishment and additional wells were planned. |
| May 07 | Q1 earnings results | Neutral | -6.2% | Quarterly results included a net loss alongside increased full-year production and sales guidance. |
| May 07 | Dividend declaration | Positive | -6.2% | The company declared its 18th consecutive quarterly dividend of $0.0625 per share. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Recent news events all recorded negative 24-hour price reactions, including operational, earnings, dividend and investor-relations announcements.
Key Terms
porosity technical
permeability technical
net reservoir pay technical
wet gas technical
oil water contact technical
AI-generated analysis. How Rhea-AI works. Not financial advice.
HOUSTON, Aug. 05, 2026 (GLOBE NEWSWIRE) -- VAALCO Energy, Inc. (NYSE: EGY, LSE: EGY) (“Vaalco” or the “Company”) provided operational updates in offshore Gabon regarding the ongoing drilling program, including well results on the ETBNM-3 well and commencement of the ETSEM-3PH well.
Operational Highlights:
- Successfully drilled, completed and placed on production the ETBNM-3 gas-supply well in the crestal portion of the North Tchibala structure from the Dentale D-15 reservoir.
- Reservoir properties were above pre-drill estimates, with strong porosity and permeability coupled with over 10 meters of net reservoir pay;
- Provides sufficient gas supply for field operations, liftings and power needs, significantly reducing the costs of higher priced diesel;
- Evaluation ongoing to assess the potential of the shallower pay intervals encountered in the D-9 and D-12 intervals, which appear to contain wet gas to light oil pay;
- Continued the drilling campaign in offshore Gabon by moving the rig on 27th July to a new slot on the SEENT platform to drill the ETSEM-3PH pilot hole and development well;
- Planned as a pilot hole and subsequent horizontal Gamba producer near the crest of the central fault block of SE Etame;
- Pilot well designed to test the original field Oil Water Contact and potential of the underlying Dentale formation;
- Following the pilot well, a horizontal development well is planned with a completion length of 300 meters within the Gamba sands.
George Maxwell, Vaalco’s Chief Executive Officer, commented, “We continue to execute operationally across our diversified portfolio of assets. In Gabon, the newly successful gas well won’t add production or sales directly but will reduce costs associated with using higher priced diesel; this should improve field uptime and potentially add production uplift to existing wells over time. Our strategy remains unchanged with an ongoing focus on growing production, reserves and value for our shareholders.”
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, and Equatorial Guinea.
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 | |
| Burson Buchanan (UK Financial PR) | +44 (0) 207 466 5000 |
| Barry Archer | VAALCO@buchanan.uk.com |
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; 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.
