EGY News & Events

Vaalco Energy announced that it had entered into an agreement for the sale of all of its non-core producing properties in Canada to a third party for approximately $25.6M, subject to customary closing adjustments. The Canadian properties current working interest production is approximately at 1,850 barrels of oil equivalent per day. The effective date of the Canadian Asset Sale is February 1 and it is expected to close within the next 30 days, subject to satisfaction of the customary closing conditions. George Maxwell, Vaalco's CEO, commented, "Over the past several years, we have worked to increase liquids production in Canada, improve operational and drilling efficiencies, drilled some successful wells and generated $82 million Canadian Dollars in operational cash flow since our acquisition. While we believe that the Canadian assets are solid, we have decided to focus on our core assets with significant drilling campaigns and continued upside. With all of the recent successes in our assets and continued large scale drilling campaigns underway or planned in those areas, we determined that now was the right time to sell. This non-core asset sale for $35.0 million Canadian Dollars is equal to 2.7x1 of our trailing 12 months operational cash flow and does not impact our borrowing base which allows us to focus on core opportunities. We are excited about the future and believe that Vaalco has many high-quality assets with significant drilling and development opportunities that we expect to generate meaningful value for our shareholders for many years to come."

VAALCO Energy announced that it has commenced its Phase Three Drilling Program offshore Gabon with the spudding of the ET-15 infill well on the Etame platform. George Maxwell, Vaalco's CEO, commented, "We are excited to commence our drilling campaign in offshore Gabon and are beginning the near-term series of value creation catalysts that we outlined to the market in our Capital Markets Day presentation this past May. The drilling rig arrived in late November, and we have spud our first well, the ET-15. We are initiating the program at the Etame platform with this infill well and the pilot holes. After drilling at the Etame platform, we expect to move the rig to the SEENT and Ebouri platforms where we have several wells and workovers planned to enhance production, lower costs and potentially add reserves. As we enter 2026, with major projects underway in both Gabon and Cote d'Ivoire, we are looking to drive meaningful growth that we believe will translate into value for our shareholders for the remainder of the decade." As previously announced, the company secured a drilling rig in December 2024 in conjunction with its Phase Three Drilling Program, with an affiliate of Borr Drilling.