VAALCO Energy, Inc. (NYSE: EGY, LSE: EGY) announced on October 7, 2026, the successful completion of its offshore Gabon Phase 3 drilling program, including encouraging initial results from the ETSEM-3H development well and the demobilization of the drilling rig from the SE Etame platform.

The company also provided an update on its recently commenced Baobab drilling program offshore Côte d'Ivoire.

ETSEM-3H Well Placed on Production

The ETSEM-3H development well was drilled, completed, and placed on production in an attic position within the SE Etame field. The well features a lateral wellbore of 300 meters of net pay in high-quality Gamba reservoir sands.

It has achieved a stabilized initial flow rate of approximately 2,000 gross barrels of oil per day, of which 1,140 BOPD is net to Vaalco. With the ETSEM-3H well on production, the Phase 3 drilling program is now complete, and the Borr Norve drill rig has been demobilized from the field.

CEO Commentary on Gabon Results

George Maxwell, Vaalco's Chief Executive Officer, commented on the outcome of the drilling campaign: "We are pleased with the results of the ETSEM-3H development well, which was landed in an attic location within the SE Etame field and is now on production at about 2,000 gross BOPD (1,140 BOPD net to Vaalco). This represents the final well in our successful Phase 3 drilling campaign, and the drilling rig has now been demobilized from the field."

Maxwell noted that the completion of the well marks the end of the Phase 3 campaign, describing it as a successful program in his remarks.

Baobab Phase 5 Drilling Underway in Côte d'Ivoire

Offshore Côte d'Ivoire, Vaalco confirmed that the Baobab Phase 5 drilling operations have begun, with the operator conducting the batch-setting of top-holes. Once the top-hole sections of all wells are drilled, the wells will then be completed and placed on production sequentially.

According to the company, the current plan for the Phase 5 drilling campaign consists of four producers, three water injectors and two workovers. The first new producer well is anticipated to be online near the end of 2026, supporting what the company describes as meaningful expected production growth in 2027.

Maxwell said, "In Côte d'Ivoire, following the successful re-start of the Baobab field during the second quarter, we have now commenced the Phase 5 drilling campaign with batch-setting the top-hole sections of the new wells. The current plan for the Phase 5 drilling campaign consists of four producers, three water injectors and two workovers. We expect to have the first new producer online near the end of the year, with meaningful production increases expected in 2027."

Strategic Focus on Growth

In his comments, Maxwell also emphasized that the company's continued success and organic project pipeline support Vaalco's strategic focus on growing production, reserves, and value for shareholders.

Vaalco describes itself as 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.

The company states that it combines disciplined capital allocation, shareholder returns, and a visible, self-funded pathway to significantly increase production from resources already within its portfolio, led by an experienced management team with a track record of value creation.

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

Forward-Looking Statement Considerations

The company cautioned that information in its announcement 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, as well as forward-looking information under applicable Canadian securities laws.

Such statements are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from future results expressed, projected, or implied by the forward-looking statements.

The company noted that forward-looking statements may include estimates of future drilling, production, sales, and costs of acquiring crude oil, natural gas, and natural gas liquids. They may also encompass expectations regarding future exploration, development, growth, and potential of operations, project pipeline, and investments.

Additionally, these statements may reflect expectations of future acquisitions, investments, or divestitures; expectations of future dividends; expectations of future balance sheet strength; and expectations of future equity and enterprise value.

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