VAALCO Energy, Inc. Provides Positive Operational and Financial Update

Core Viewpoint - Vaalco Energy, Inc. has reported a successful operational and financial update for 2025, highlighting strong production and sales performance, successful drilling activities in Gabon and Egypt, and improved cash position as of year-end 2025 [1][2][3]. Financial Performance - Recorded full year 2025 sales volumes of approximately 22,100 working interest ("WI") barrels of oil equivalent per day ("BOEPD"), at the top of its guidance range of 20,800 to 22,200 WI BOEPD [3]. - Produced approximately 21,150 WI BOEPD for the full year 2025, at the midpoint of its full year guidance range [3]. - Increased cash at bank by nearly $35 million to $58.8 million at December 31, 2025, while funding capital programs without any draws against the reserve based lending facility (RBL) in Q4 2025 [2][3]. Operational Highlights - The Phase Three Drilling Program in Gabon commenced in Q4 2025, with two pilot wells drilled in the Etame field, encountering high-quality reservoir sands and confirming strong communication with nearby producing wells [1][3]. - The first well, ET-15P, encountered initial estimates of between 2.4 and 3.2 million barrels of oil in place, while the second pilot well, ET-15P-ST1, delivered approximately nine meters of net reservoir and four meters of net pay across two sand lobes [1][3]. - Successful completion of the 2025 Egyptian drilling program, including a successful exploration well in the H-Field, Eastern Desert, with an initial flow rate of approximately 450 BOEPD [3]. Accounts Receivable Management - The company improved its accounts receivable situation in Egypt, reducing outstanding receivables from $113 million at the start of 2025 to $31 million by year-end, despite invoicing over $129 million in revenue for the year [2][3]. - Collected over $210 million in 2025, aided by a $40 million industry payment received in the last week of the year [2]. Future Outlook - The Baobab Ivorian Floating Production Storage and Offloading Vessel (FPSO) for the Baobab field is on track to leave Dubai in early February, with production expected to resume in the second quarter [3][4]. - The company aims to continue driving meaningful growth through major projects in Gabon and Côte d'Ivoire, translating into shareholder value for the remainder of the decade [4].