VAALCO Energy, Inc. Provides Operational Update on Offshore Gabon Drilling Program

Rhea-AI Summary

VAALCO Energy (NYSE: EGY) provided an operational update on its Phase Three Drilling Program offshore Gabon. The Etame West ET-14P exploration well encountered 10 meters of high-quality Gamba sands in the target interval, but the reservoir was water-bearing and not commercial. The lower well will be plugged and abandoned, while the existing bore will be sidetracked to drill the ET-14H development well in the Main Fault Block pending partner approval. Operations are expected to be completed in April 2026.

Positive

• Encountered 10 meters of high-quality Gamba sands
• Plan to sidetrack and drill ET-14H using existing well bore
• Operations expected to be completed by April 2026

Negative

• Target zone in ET-14P was water-bearing and non-commercial
• Lower portion of ET-14P will be plugged and abandoned

News Market Reaction – EGY

-0.92%

1 alert

-0.92% News Effect

On the day this news was published, EGY declined 0.92%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Gamba sands thickness: 10 meters

1 metrics

Gamba sands thickness 10 meters Etame West ET-14P exploration well encounter

Market Reality Check

Price: $5.39 Vol: Volume 2,147,451 is 1.8x ...

high vol

$5.39 Last Close

Volume Volume 2,147,451 is 1.8x the 20-day average of 1,196,217, indicating elevated trading interest pre-announcement. high

Technical Shares at $5.45 are near the 52-week high of $5.55 and trading above the 200-day MA of $3.95.

Peers on Argus

EGY is up while peers are mixed: SD -1.53%, OBE -2.85%, VTLE -1.16% versus TBN +...

EGY is up while peers are mixed: SD -1.53%, OBE -2.85%, VTLE -1.16% versus TBN +0.91% and REPX +2.67%, suggesting stock-specific factors rather than a uniform sector move.

Historical Context

5 past events · Latest: Feb 24 (Neutral)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Feb 24	Conference participation	Neutral	-1.5%	CEO presentation at Oslo energy conference and updated investor materials.
Feb 24	Operational update	Positive	+3.0%	Operational progress in Gabon and Côte d’Ivoire, including strong Etame 15H-ST output.
Feb 17	Dividend declaration	Positive	-1.6%	Q1 2026 cash dividend of <b>$0.0625</b> per share, 17th consecutive payment.
Feb 12	Investor outreach	Positive	+3.8%	Non-deal roadshow and updates on Baobab refurbishment and Canadian asset divestiture.
Feb 05	Asset divestiture	Positive	-11.3%	Sale of non-core Canadian assets for ~CAD $35M, at 2.7x cash flow multiple.

Pattern Detected

Recent history shows positive operational and capital-return news sometimes met with negative reactions, while other updates are rewarded, indicating inconsistent news-to-price alignment.

Recent Company History

Over the past months, EGY reported several corporate and operational milestones. An encouraging operational update in Gabon and Côte d’Ivoire on Feb 24, 2026 coincided with a +2.98% move. A Q1 2026 dividend declaration and a Canadian non-core asset sale around CAD $35.0 million saw negative price reactions. Investor events and roadshows in February drew mixed but sometimes positive responses. Today’s Gabon drilling update fits into this pattern of active portfolio management and field development.

Market Pulse Summary

This announcement details that the Etame West ET-14P exploration well encountered 10 meters of high-...

Analysis

This announcement details that the Etame West ET-14P exploration well encountered 10 meters of high-quality Gamba sands that proved water-bearing, while confirming plans to sidetrack the existing well bore into a known productive fault block, with operations expected to complete in April. In recent months, EGY has combined active drilling, asset divestiture, and regular dividends, so investors may track how this redirection of the well supports production stability and capital allocation priorities.

Key Terms

well bore, development well, main fault block

3 terms

well bore technical

"the well bore will be utilized and sidetracked in the upper portion of the well"

A well bore is the drilled hole that connects the surface to a subsurface reservoir of oil, gas or water, including the open rock section and any lining installed to keep it stable. Think of it as the tunnel or straw that lets resources flow up to the surface. Investors care because the well bore’s design, condition and depth directly affect how much can be produced, how costly operations and repairs will be, and the safety and regulatory risks tied to a well.

development well technical

"sidetracked in the upper portion of the well to drill the ET-14H development well"

A development well is a borehole drilled into a reservoir where oil or natural gas has already been discovered, intended to produce fuel and expand known output rather than to test for new discoveries. It matters to investors because development wells usually carry lower technical and commercial risk than exploratory wells and directly add to a company’s short‑term production, reserves and revenue potential—think of adding another tap to a proven water line to increase usable flow.

main fault block technical

"development well in the Main Fault Block of Etame, pending partner approval."

A main fault block is a large, distinct chunk of the Earth’s crust separated from neighboring blocks by major fractures or faults. For investors, it matters because such blocks control where minerals, oil, gas, or groundwater gather and how the ground will behave in earthquakes; thinking of the crust like a cracked loaf of bread makes it easier to picture where valuable pockets or stability risks might sit.

AI-generated analysis. Not financial advice.

HOUSTON, March 09, 2026 (GLOBE NEWSWIRE) -- VAALCO Energy, Inc. (NYSE: EGY, LSE: EGY) (“Vaalco” or the “Company”) today provided an operational update on its Phase Three Drilling Program offshore Gabon. Vaalco has completed drilling the Etame West ET-14P exploration well. While the well encountered 10 meters of high-quality Gamba sands, in line with pre-drill predictions, the target zone was water-bearing. The lower portion of the well will be plugged and abandoned but the well bore will be utilized and sidetracked in the upper portion of the well to drill the ET-14H development well in the Main Fault Block of Etame, pending partner approval. Operations are expected to be completed in April.

George Maxwell, Vaalco’s Chief Executive Officer, commented, “When we committed to drilling the Etame West exploration well, we knew there was the geologic risk of not encountering commercial sands but the size of the potential reservoir made it a risk worth taking. Furthermore, we purposely designed the well so we could still utilize the well bore to drill a development well into a known productive area if the sands were non-commercial. This side-tracked well should be completed in April.”

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.

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

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.

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 did VAALCO (EGY) find in the Etame West ET-14P exploration well?

The ET-14P well encountered 10 meters of high-quality Gamba sands that were water-bearing. According to the company, the sands matched pre-drill predictions but the target zone was not commercially productive, prompting a plan to sidetrack the bore.

Why will VAALCO (EGY) sidetrack the ET-14P well to drill ET-14H?

They will sidetrack to access a known productive area in the Main Fault Block and pursue development. According to the company, the original bore was designed so the upper section could be reused if the exploration zone proved non-commercial.

What will happen to the lower portion of the ET-14P well reported by VAALCO (EGY)?

The lower portion of ET-14P will be plugged and abandoned as it was water-bearing and non-commercial. According to the company, only the upper portion of the bore will be used for the sidetrack to drill ET-14H.

When does VAALCO (EGY) expect to complete the sidetracked ET-14H well operations?

Operations are expected to be completed in April 2026. According to the company, the sidetrack and development drilling timetable assumes partner approval and will use the existing well bore to expedite the program.

Does the ET-14P result change VAALCO's (EGY) Phase Three Drilling Program plans?

The company intends to proceed by sidetracking ET-14P to drill ET-14H in the Main Fault Block. According to the company, the well was purposely designed to allow reuse of the bore if the exploration zone proved non-commercial.