VAALCO Energy, Inc. (NYSE: EGY) reported positive operational updates from its ongoing drilling programs in Gabon and Egypt, highlighted by strong initial production rates from newly completed development wells and continued progress across its international portfolio.
The company announced that the Ebouri-5H development well offshore Gabon has been successfully drilled, completed, and brought online. Located at the top of the Ebouri field structure, the well encountered approximately 300 meters of net pay within high-quality Gamba sandstone reservoirs.
According to VAALCO, the well delivered an initial production rate exceeding 8,000 gross barrels of oil per day (BOPD), equivalent to approximately 4,700 BOPD net to the company, while maintaining a very low water cut.
Following completion of the Ebouri-5H well, the drilling rig has been mobilized to the SEENT platform, where VAALCO plans to drill the ETBNM-3 development well. The planned directional well is located near the GMF-1X discovery and is targeting gas and condensate resources in the Dentale D15 reservoir within the North Tchibala structure.
The company expects natural gas from a successful well to be used for field operations, potentially lowering operating costs by reducing reliance on diesel fuel that is currently transported offshore by vessel.
In Egypt, VAALCO also reported the successful completion of the HE-9 development well, the first well drilled under its 2026 drilling campaign. The well encountered 26 meters of net pay within the Asl B reservoir and achieved an initial production rate of 529 gross BOPD, exceeding the company’s pre-drill expectations.
Chief Executive Officer George Maxwell said the results demonstrate continued operational momentum across the company’s key producing assets.
“We are very pleased with the continued positive results from our Gabon drilling campaign,” Maxwell said. “The Ebouri-5H development well encountered 300 meters of net pay in high-quality Gamba sands and was brought online with initial rates exceeding 8,000 gross BOPD.”
Maxwell added that VAALCO intends to continue adding production and reserves through the remainder of its Gabon drilling program while advancing additional development opportunities in Egypt.
The company noted that its Egyptian drilling activities build on the success of the 2025 campaign, supported by operational efficiencies and accelerated subsurface evaluations. Management expects additional wells to be drilled during 2026 as part of its growth strategy.
VAALCO also highlighted the recent restart of production at the Baobab field, alongside the positive drilling results in Gabon and Egypt, as key milestones achieved during the first half of the year.
The company said it remains focused on executing its organic growth programs and believes the ongoing drilling campaigns will contribute to production growth, reserve additions, and shareholder value creation throughout 2026 and beyond.