Q1 2025 Supplemental Information Profitably and Sustainably Growing Value May 2025 Q1 2025 Supplemental Information: Profitably and Sustainably Growing Value May 2025 Safe Harbor Statement Forward Looking Statements This presentation of Vaalco Energy, Inc. ("Vaalco") includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act") and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the ...

[Q1 2025 Performance Overview](index=1&type=section&id=Q1%202025%20Performance%20Overview) [Key Highlights](index=1&type=section&id=Key%20Highlights) In Q1 2025, Vaalco exceeded production guidance and met sales targets, resulting in a net income of $7.7 million ($0.07 per share) and Adjusted EBITDAX of $57.0 million Q1 2025 Key Financial and Operational Metrics | Metric | Value | | :--- | :--- | | Net Income | $7.7 million ($0.07 per diluted share) | | Adjusted Net Income | $6.3 million ($0.06 per diluted share) | | Adjusted EBITDAX | $57.0 million | | NRI Production | 17,764 BOEPD (above high end of guidance) | | WI Production | 22,402 BOEPD (toward high end of guidance) | | NRI Sales | 19,074 BOEPD (toward high end of guidance) | | Quarterly Dividend | $0.0625 per share | - Entered into a new reserves-based revolving credit facility with an initial commitment of **$190 million**, with the potential to increase to **$300 million**[3](index=3&type=chunk) - Reduced full-year 2025 capital expenditure guidance by approximately **10%** without impacting production or sales forecasts for the year[3](index=3&type=chunk) - Acquired a **70%** working interest in the CI-705 block offshore Côte D'Ivoire, where it will serve as the operator[3](index=3&type=chunk) [CEO Commentary](index=1&type=section&id=CEO%20Commentary) The CEO highlighted another successful quarter, meeting or exceeding guidance, which led to solid financial results and strategic achievements including a new credit facility and project advancements - The company delivered strong Q1 results with sales at the high end of guidance and NRI production above the high end, leading to solid net income and Adjusted EBITDAX[2](index=2&type=chunk) - Strategic execution in Q1 included initiating a new credit facility, commencing the FPSO refurbishment for Côte D'Ivoire, and preparing for the 2025/2026 drilling program in Gabon[2](index=2&type=chunk) - Decided to reduce the 2025 capital expenditure budget by about **10%** by delaying discretionary spending and deferring the capital program in Canada, which does not affect 2025 production or sales forecasts due to strong asset performance elsewhere[2](index=2&type=chunk) [Operational Update](index=3&type=section&id=Operational%20Update) [Egypt](index=3&type=section&id=Egypt) In Q1 2025, Vaalco completed five wells, with four brought online demonstrating an average initial 30-day production rate of approximately 135 BOPD, and discovered a new production zone in the Bakr formation - Completed five wells in Q1 2025; four were brought online with an average initial production rate of **~135 BOPD** over the first 30 days[4](index=4&type=chunk) - A new production zone was discovered in the Bakr formation, which contains heavier oil; the company is reviewing options to improve flow[4](index=4&type=chunk) [Canada](index=3&type=section&id=Canada) The company has decided to defer its 2025 drilling program in Canada as part of a strategy to reduce overall capital expenditures, while the four wells drilled in H1 2024 continue to perform as expected - Vaalco has deferred the drilling of additional wells in Canada for 2025 to lower the company's overall capital spending[6](index=6&type=chunk) [Gabon](index=3&type=section&id=Gabon) A drilling rig was secured for the 2025/2026 drilling program, set to begin in Q3 2025, and a successful extended flow test on the Ebouri 4-H well confirmed the effectiveness of chemical treatment for H2S - Secured a drilling rig for the 2025/2026 drilling program, scheduled to start in Q3 2025, targeting development, appraisal, and workover wells[7](index=7&type=chunk) - A successful four-month flow test on the Ebouri 4-H well demonstrated the ability to treat H2S-affected oil, adding to Q1 production[7](index=7&type=chunk) [Côte d'Ivoire](index=3&type=section&id=C%C3%B4te%20d%27Ivoire) The Baobab FPSO ceased production in January 2025 for refurbishment, with significant development drilling expected to start in 2026, and Vaalco expanded its presence by acquiring a 70% working interest in the offshore CI-705 block - The Baobab FPSO ceased production on January 31, 2025, for a planned dry dock refurbishment; development drilling is expected to begin in 2026 after the FPSO returns[8](index=8&type=chunk) - Acquired a **70%** working interest and operatorship of the CI-705 block for a **$3 million** investment, partnering with Ivory Coast Exploration Oil & Gas SAS and PETROCI[9](index=9&type=chunk) [Financial Performance](index=3&type=section&id=Financial%20Performance) [Financial Summary](index=3&type=section&id=Financial%20Summary) Vaalco reported Q1 2025 net income of $7.7 million, a 34% decrease from Q4 2024, primarily due to lower sales volumes and higher production expenses, with Adjusted EBITDAX at $57.0 million Quarterly Financial Comparison (in millions USD) | Metric | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | Net Income | $7.7 | $11.7 | $7.7 | | Adjusted EBITDAX | $57.0 | $76.2 | $61.7 | - The decrease in earnings compared to Q4 2024 was driven by lower sales volumes and higher production expense, partially offset by lower DD&A and income tax expense[10](index=10&type=chunk) [Revenue and Sales Analysis](index=4&type=section&id=Revenue%20and%20Sales%20Analysis) Net revenue for Q1 2025 was $110.3 million, down 9% from Q4 2024 due to an 8% decrease in NRI sales volumes, but up 10% year-over-year with a 15% increase in sales volumes Q1 2025 vs. Q4 2024 Sales Performance | Metric | Q1 2025 | Q4 2024 | % Change | | :--- | :--- | :--- | :--- | | Total Commodity Sales (Millions USD) | $110.3 | $121.7 | (9%) | | Sales (NRI MBOE) | 1,717 | 1,872 | (8%) | | Realized Price ($/BOE) | $64.27 | $64.77 | (1%) | Q1 2025 vs. Q1 2024 Sales Performance | Metric | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Total Commodity Sales (Millions USD) | $110.3 | $100.2 | 10% | | Sales (NRI MBOE) | 1,717 | 1,490 | 15% | [Costs and Expenses](index=5&type=section&id=Costs%20and%20Expenses) Total production expense for Q1 2025 was $44.7 million, a 23% increase from Q4 2024 and a 39% increase from Q1 2024, mainly due to Gabon government audit settlements and higher chemical costs Quarterly Expense Comparison (in millions USD) | Expense Category | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | Production Expense | $44.7 | $36.5 | $32.1 | | DD&A | $30.3 | $37.0 | $25.8 | | G&A (ex. stock comp) | $7.8 | $7.1 | $5.9 | - The increase in production expense was primarily driven by higher costs in Gabon, including approximately **$4.7 million** (net) for government audit settlements and additional chemical costs for H2S treatment[13](index=13&type=chunk) [Capital Investments and Balance Sheet](index=6&type=section&id=Capital%20Investments%20and%20Balance%20Sheet) Net capital expenditures for Q1 2025 totaled $58.5 million, mainly for projects in Gabon, Côte d'Ivoire, and Egypt, with the company ending the quarter with $40.9 million in unrestricted cash and securing a new $190 million credit facility - Net capital expenditures were **$58.5 million** on a cash basis and **$51.3 million** on an accrual basis for Q1 2025[19](index=19&type=chunk) - Ended Q1 with an unrestricted cash balance of **$40.9 million** and Adjusted Working Capital of **$40.4 million**[20](index=20&type=chunk) - In March 2025, entered into a new reserves-based revolving credit facility with an initial commitment of **$190 million**, replacing the previous undrawn facility[21](index=21&type=chunk) [Shareholder Returns and Hedging](index=6&type=section&id=Shareholder%20Returns%20and%20Hedging) [Quarterly Cash Dividend](index=6&type=section&id=Quarterly%20Cash%20Dividend) Vaalco continues its commitment to shareholder returns, declaring a second-quarter 2025 cash dividend of $0.0625 per share ($0.25 annualized), payable on June 27, 2025 - Declared a Q2 2025 quarterly cash dividend of **$0.0625 per share**, to be paid on June 27, 2025[22](index=22&type=chunk) - This maintains the annualized dividend at **$0.25 per share**[22](index=22&type=chunk) [Hedging Activities](index=6&type=section&id=Hedging%20Activities) The company maintains a hedging program to secure cash flows, with Dated Brent collars in place for Q2 and Q3 2025, and additional AECO natural gas and Dated Brent swaps added post-quarter Hedges in Place as of March 31, 2025 | Settlement Period | Type | Avg. Volumes (Bbl) | Floor Price ($/Bbl) | Ceiling Price ($/Bbl) | | :--- | :--- | :--- | :--- | :--- | | Apr 2025 - Jun 2025 | Collar | 70,000 | $65.00 | $81.00 | | Jul 2025 - Sep 2025 | Collar | 60,000 | $65.00 | $80.00 | Hedges Added After March 31, 2025 | Settlement Period | Commodity | Type | Avg. Volumes | Hedge Price | | :--- | :--- | :--- | :--- | :--- | | May - Oct 2025 | Natural Gas | Swap | 114,000 (GJ) | $2.15 (CAD/GJ) | | July 2025 | Oil | Swap | 100,000 (Bbl) | $65.45 ($/Bbl) | [Outlook and Guidance](index=7&type=section&id=Outlook%20and%20Guidance) [2025 Full Year and Q2 Guidance](index=7&type=section&id=2025%20Full%20Year%20and%20Q2%20Guidance) Vaalco updated its full-year 2025 guidance, projecting NRI production at 14,500-16,710 BOEPD with capital expenditures of $250-$300 million, and provided Q2 2025 guidance for production and capital expenditures Full Year 2025 Guidance | Metric | Guidance | | :--- | :--- | | Production (NRI BOEPD) | 14,500 - 16,710 | | Sales Volume (NRI BOEPD) | 14,900 - 17,200 | | Production Expense | $148.5 - $161.5 MM | | CAPEX (ex. acquisitions) | $250 - $300 MM | Q2 2025 Guidance | Metric | Guidance | | :--- | :--- | | Production (NRI BOEPD) | 15,400 - 16,800 | | Sales Volume (NRI BOEPD) | 17,800 - 19,300 | | Production Expense | $39.5 - $48.0 MM | | CAPEX (ex. acquisitions) | $65 - $85 MM | [Financial Statements (Appendix)](index=10&type=section&id=Financial%20Statements%20(Appendix)) [Condensed Consolidated Balance Sheets](index=10&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, Vaalco's total assets stood at $927.1 million, down from $955.0 million at year-end 2024, with total liabilities decreasing to $423.0 million and cash and cash equivalents at $40.9 million Balance Sheet Summary (in thousands USD) | Account | March 31, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $40,914 | $82,650 | | Total current assets | $200,838 | $237,927 | | Total assets | $927,103 | $954,950 | | Total current liabilities | $177,675 | $181,728 | | Total liabilities | $423,009 | $453,367 | | Total shareholders' equity | $504,094 | $501,583 | [Consolidated Statements of Operations](index=11&type=section&id=Consolidated%20Statements%20of%20Operations) For the three months ended March 31, 2025, Vaalco reported total revenues of $110.3 million and operating income of $26.2 million, resulting in a net income of $7.7 million, or $0.07 per diluted share, consistent with Q1 2024 Statement of Operations Summary (in thousands USD, except per share data) | Account | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Revenues | $110,329 | $100,155 | | Operating Income | $26,194 | $32,193 | | Income before income taxes | $23,813 | $29,924 | | Net Income | $7,730 | $7,686 | | Diluted Net Income per share | $0.07 | $0.07 | [Condensed Consolidated Statements of Cash Flows](index=12&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) In Q1 2025, net cash provided by operating activities was $32.7 million, while $58.8 million was used in investing activities and $14.8 million in financing activities, leading to a net decrease in cash of $40.8 million Cash Flow Summary (in thousands USD) | Category | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $32,706 | $21,832 | | Net cash used in investing activities | ($58,774) | ($16,618) | | Net cash used in financing activities | ($14,786) | ($14,455) | | Net change in cash | ($40,827) | ($9,449) | [Selected Financial and Operating Statistics](index=13&type=section&id=Selected%20Financial%20and%20Operating%20Statistics) For Q1 2025, total average daily production on a working interest (WI) basis was 22,402 BOEPD, and on a net revenue interest (NRI) basis was 17,764 BOEPD, representing a 5% year-over-year increase in NRI production Quarterly Production Comparison (Average Daily BOEPD) | Basis | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | WI Production | 22,402 | 25,300 | 21,804 | | NRI Production | 17,764 | 20,775 | 16,850 | Quarterly Sales and Price Comparison | Metric | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | NRI Sales (MBOE) | 1,717 | 1,872 | 1,490 | | Avg. Sales Price (NRI, $/BOE) | $64.27 | $64.77 | $66.43 | [Non-GAAP Financial Measures Reconciliation](index=14&type=section&id=Non-GAAP%20Financial%20Measures%20Reconciliation) Vaalco uses non-GAAP measures like Adjusted Net Income and Adjusted EBITDAX to better reflect underlying performance, with Q1 2025 net income of $7.7 million reconciling to an Adjusted Net Income of $6.3 million and Adjusted EBITDAX of $57.0 million Reconciliation of Net Income to Adjusted Net Income (in thousands USD) | Line Item | Q1 2025 | Q4 2024 | | :--- | :--- | :--- | | Net income | $7,730 | $11,664 | | Adjustments | ($1,390) | ($4,821) | | **Adjusted Net Income** | **$6,340** | **$6,843** | Reconciliation of Net Income to Adjusted EBITDAX (in thousands USD) | Line Item | Q1 2025 | Q4 2024 | | :--- | :--- | :--- | | Net income | $7,730 | $11,664 | | Adjustments | $49,228 | $64,569 | | **Adjusted EBITDAX** | **$56,958** | **$76,233** |

分组1 - Vaalco Energy reported quarterly earnings of $0.06 per share, matching the Zacks Consensus Estimate, and the same as the previous year [1] - The company posted revenues of $110.33 million for the quarter ended March 2025, exceeding the Zacks Consensus Estimate by 4.98% and up from $100.16 million a year ago [2] - Vaalco Energy shares have declined approximately 25.6% since the beginning of the year, contrasting with the S&P 500's decline of 4.3% [3] 分组2 - The earnings outlook for Vaalco Energy is currently unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] - The current consensus EPS estimate for the upcoming quarter is $0.02 on revenues of $89.4 million, and for the current fiscal year, it is $0.10 on revenues of $359.1 million [7] - The Oil and Gas - Exploration and Production - International industry is ranked in the bottom 26% of over 250 Zacks industries, suggesting potential challenges for stocks in this sector [8]

HOUSTON, May 08, 2025 (GLOBE NEWSWIRE) -- VAALCO Energy, Inc. (NYSE: EGY, LSE: EGY) (“Vaalco” or the “Company”) today reported operational and financial results for the first quarter of 2025. First Quarter 2025 Highlights and Recent Key Items: Reported net income of $7.7 million ($0.07 per diluted share), Adjusted Net Income of $6.3 million ($0.06 per diluted share) and Adjusted EBITDAX(1) of $57.0 million; Produced 17,764 net revenue interest (“NRI”)(2) barrels of oil equivalent per day (“BOEPD”), above th ...

HOUSTON, May 08, 2025 (GLOBE NEWSWIRE) -- Vaalco Energy, Inc. (NYSE: EGY; LSE: EGY) ("Vaalco" or the "Company") today announced that it declared its quarterly cash dividend of $0.0625 per share of common stock for the second quarter of 2025 ($0.25 annualized), which is payable on June 27, 2025, to stockholders of record at the close of business on May 23, 2025. Future declarations of quarterly dividends and the establishment of future record and payment dates are subject to approval by the Board of Director ...

HOUSTON, May 07, 2025 (GLOBE NEWSWIRE) -- Vaalco Energy, Inc. (NYSE: EGY; LSE: EGY) (“Vaalco” or the “Company”) today provided additional details regarding its Capital Markets Day presentation on Wednesday, May 14, 2025. The presentation will begin at 8 a.m. Central Time (2 p.m. London Time) and is expected to conclude by around 10:00 a.m. Central Time (4 p.m. London Time). Participation in the Capital Markets Day is directed to Vaalco’s shareholders, buy side and sell side analysts, as well as large instit ...

Core Viewpoint - VAALCO Energy, Inc. is set to release its first quarter 2025 earnings on May 8, 2025, and will host a conference call on May 9, 2025, to discuss financial and operational results [1][2]. Company Information - VAALCO Energy, Inc. is an independent energy company based in Houston, Texas, with a diverse portfolio of production, development, and exploration assets across multiple countries including Gabon, Egypt, Côte d'Ivoire, Equatorial Guinea, Nigeria, and Canada [3]. Conference Call Details - The earnings release will occur after the close of trading on the New York Stock Exchange on May 8, 2025, with the conference call scheduled for May 9, 2025, at 9:00 a.m. Central Time [2]. - Participants can join the call using specific toll-free numbers based on their location, and the call will also be available via webcast on VAALCO's website [2].

Financial Data and Key Metrics Changes - For the full year 2024, the company achieved a record adjusted EBITDAX of $300 million, marking a year-over-year increase of $23 million or 8% [6][25] - Record production reached almost 25,000 working interest barrels equivalent per day, with record sales of nearly 20,000 net interest barrels per day [6][25] - SEC proved reserves grew by 57% year-over-year to 45 million BOE, while 2P CPR reserves increased to 96.1 million BOE [6][21] Business Line Data and Key Metrics Changes - In Canada, production from new wells increased to approximately 75% liquids in Q2 through Q4, contributing to strong production performance [12] - In Egypt, 12 workovers were completed in 2024, with plans for 8 to 13 additional wells to be drilled in 2025 [14] - Gabon showed positive production results with strong uptime and improved decline curves, with a drilling program planned to begin in Q3 2025 [16][17] Market Data and Key Metrics Changes - The company reported stable pricing in Q4 2024, supported by a hedging program to mitigate risks [27] - Production costs for Q4 2024 were below guidance, with absolute costs at $37.7 million and per barrel costs at $20.16 [27][28] Company Strategy and Development Direction - The company aims to maximize asset value through operational efficiency, prudent investments, and seeking accretive opportunities [40][42] - Plans include extensive drilling campaigns in Gabon and Cote D'Ivoire, with a focus on enhancing production and reserves [41][42] - The company is positioned to execute projects in its diversified portfolio, with a strong emphasis on returning value to shareholders [42] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's operational and financial momentum entering 2025, highlighting a commitment to safety and operational excellence [5][15] - The company anticipates a production decline in 2025 due to the FPSO shutdown but expects significant growth in 2026 as new projects come online [34][35] Other Important Information - The company returned $33 million to shareholders through dividends and buybacks in 2024, with a projected annual dividend of $0.25 per share for 2025 [7][42] - A new revolving credit facility of up to $300 million was established to support capital programs [33][38] Q&A Session Summary Question: Can you talk about the cycle times for exploration projects in Gabon and Cote D'Ivoire? - Management indicated that seismic acquisition is expected to begin in Q1 2026, with drilling likely starting in late 2026 or early 2027 for Gabon, while Cote D'Ivoire will see seismic data acquisition in Q2 or Q3 2025 [45][46] Question: What impact will the capital campaign in 2026 have on cost recovery pools? - Management noted that capital spent on successful wells in Gabon will begin to recover quickly, while Cote D'Ivoire will see a 25% uplift in investment once production resumes [48][49] Question: How will the Gabon drilling campaign impact production volumes? - Management expressed optimism about achieving significant production increases, similar to past campaigns, with a focus on enhancing the Itami asset [51][52] Question: What are the critical path items for the FPSO refurbishment in Cote D'Ivoire? - Key milestones include the turret bearing delivery and the expected timeline for commissioning, with first oil anticipated in mid to late May 2026 [66][68] Question: How many H2S wells will be included in the drilling program? - Management confirmed that the Aburi wells will be part of the drilling program, with the first wells being drilled in 2025 and the Aburi wells following later [82][85]

Financial Data and Key Metrics Changes - For the full year 2024, the company increased its adjusted EBITDAX to $300 million, a new record [7] - Record production reached almost 25,000 working interest barrels equivalent per day, with record sales of nearly 20,000 net interest barrels per day [7] - SEC proved reserves grew 57% year over year to 45 million BOE, while 2P CPR reserves increased to 96.1 million BOE [7][22] - The company returned $83 million to shareholders over the past two years through dividends and share buybacks [7] Business Line Data and Key Metrics Changes - In Cote D'Ivoire, the company completed the Svenska acquisition in April 2024, achieving a 1.8x payback on the initial investment by year-end [8] - Canadian production was approximately 60% liquid in Q1 and about 75% liquid from Q2 to Q4, indicating a shift towards more profitable liquid production [12] - In Egypt, the company completed 12 workover projects in 2024 to mitigate decline, with plans to drill an additional 8 to 13 wells in 2025 [14] Market Data and Key Metrics Changes - The company reported stable pricing in Q4 2024, supported by a hedging program to mitigate risks [29] - Production costs for Q4 2024 were below guidance, with absolute costs at $37.7 million and per barrel costs at $20.16 [30] Company Strategy and Development Direction - The company aims to maintain operational excellence and consistent production to expand adjusted EBITDAX, positioning itself for future growth [6] - Plans include extensive drilling campaigns in Gabon and Cote D'Ivoire, with a focus on maximizing production and reserves [43][44] - The company is also progressing with the FEED study for the Venus Block P in Equatorial Guinea, anticipating an economic final investment decision in 2025 [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's operational and financial momentum entering 2025, highlighting a diversified portfolio of high-quality assets [8][24] - The company noted improvements in collection rates in Egypt, which have outpaced revenues in early 2025 [35][63] - Management emphasized the undervaluation of the stock despite strong operational performance and a top quartile dividend yield [41][46] Other Important Information - The FPSO ceased hydrocarbon operations as scheduled on January 31, 2025, with significant development drilling expected to begin in 2026 [9] - The company secured a new revolving credit facility with an initial commitment of $190 million, expandable to $300 million, to support capital programs [36] Q&A Session Summary Question: Can you talk about the cycle times for exploration projects in Gabon and Cote D'Ivoire? - Management indicated that seismic acquisition for Gabon is expected in Q1 2026, with drilling likely starting in late 2026 or early 2027 [48][49] Question: What impact will the capital campaign in 2026 have on cost recovery pools? - Management noted that capital spent in Gabon will start recovering as soon as successful wells are in production, while Cote D'Ivoire offers a 25% uplift for every dollar invested [51][52] Question: How will the Gabon drilling campaign impact production volumes? - Management expressed optimism about achieving significant production increases, similar to past campaigns, with a focus on enhancing the drilling program [55] Question: What are the critical path items for the FPSO refurbishment in Cote D'Ivoire? - Key milestones include the turret bearing, which is already in transit to Dubai, with first oil expected between mid to late May 2026 [71][72] Question: How many H2S wells will be included in the drilling program? - Management confirmed that the Aburi wells will be part of the drilling program, with the first wells being drilled in 2026 [88]

Core Viewpoint - VAALCO Energy has entered an agreement to acquire a 70% stake in the CI-705 block off the coast of Côte d'Ivoire, assuming operatorship alongside its partners [1][4] Group 1: Acquisition Details - VAALCO will hold a 100% paying interest in the CI-705 block through a commercial carry agreement, covering exploration and production costs [2][4] - The block is located near Eni's Calao discovery, the second largest hydrocarbon discovery in Côte d'Ivoire [2] Group 2: Block Characteristics - CI-705 spans approximately 2,300 sq. km in the Tano Basin, with water depths ranging from zero to 2,500 meters [3] - The block has been less explored, with only three wells drilled to date, indicating potential for significant oil and gas discoveries [5] Group 3: Exploration Plans - VAALCO has invested approximately $3 million to acquire its stake and plans to conduct detailed geological analysis to assess the block's potential [5][6] - The company aims to leverage existing regional infrastructure for future developments and has confirmed oil and gas prospects in the block [6] Group 4: Future Growth - VAALCO has several major exploration projects planned for 2025 and 2026, expected to enhance organic growth within its diversified asset portfolio [7]