VAALCO Energy Reports Strong 2025 Performance, Significant Cash Increase, and Successful Drilling Updates

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VAALCO Energy's latest operational and financial update signals robust performance and positive momentum. The company exceeded its sales volume guidance for 2025 and achieved production at the midpoint of its range. Financially, a nearly $35 million increase in cash at bank to $58.8 million, coupled with a significant reduction in Egyptian accounts receivables from $113 million to $31 million, demonstrates strong cash generation and improved balance sheet health. Operationally, the successful start to the Phase Three Drilling Program in Gabon, including the ET-15 well encountering 2.4-3.2 million barrels of oil in place, and a successful exploration well in Egypt, points to future production growth. The on-schedule progress of the Baobab FPSO further de-risks a key project. These combined factors suggest strong execution and a positive outlook for the company's production and financial stability.

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• Strong 2025 Performance

  Achieved full year 2025 sales volumes of approximately 22,100 WI BOEPD, at the top of its guidance range, and production at the midpoint of its full year guidance.

• Significant Cash Increase

  Increased cash at bank by nearly $35 million to $58.8 million at December 31, 2025, without any draws against its reserve-based lending facility in the fourth quarter.

• Improved Receivables Collection

  Reduced outstanding Egyptian accounts receivables from $113 million at the start of 2025 to $31 million by year-end, collecting over $210 million during the year.

• Successful Gabon Drilling

  Commenced Phase Three Drilling Program offshore Gabon with successful pilot wells, including the ET-15 well encountering initial estimates of 2.4 to 3.2 million barrels of oil in place.

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VAALCO Energy's latest operational and financial update signals robust performance and positive momentum. The company exceeded its sales volume guidance for 2025 and achieved production at the midpoint of its range. Financially, a nearly $35 million increase in cash at bank to $58.8 million, coupled with a significant reduction in Egyptian accounts receivables from $113 million to $31 million, demonstrates strong cash generation and improved balance sheet health. Operationally, the successful start to the Phase Three Drilling Program in Gabon, including the ET-15 well encountering 2.4-3.2 million barrels of oil in place, and a successful exploration well in Egypt, points to future production growth. The on-schedule progress of the Baobab FPSO further de-risks a key project. These combined factors suggest strong execution and a positive outlook for the company's production and financial stability.