VAALCO Energy reported that its Phase Three drilling program in Gabon’s Etame field has successfully completed two pilot wells, ET‑15P and ET‑15P‑ST1, to depths of 2,397 m and 2,175 m respectively. The wells encountered high‑quality reservoir sands in the Gamba and Dentale formations, confirming a connected, productive reservoir system and providing volumetric estimates of 2.4–3.2 million barrels of oil in place. These results validate the field’s development potential and support the company’s plan to replace reserves and increase production in a mature offshore basin.
The pilot wells’ performance aligns with VAALCO’s strategy of low‑cost, high‑margin development. Gabon delivers the company’s strongest margins, largely because of lower government royalties compared to Egypt. The confirmation of substantial oil‑in‑place in Etame—where 88.4 % of recoverable reserves have already been produced—provides a clear path to extend the field’s life and sustain future cash flows. The company’s 2025 financial update showed that it hit the top end of sales guidance, boosted cash to $58.8 million, and avoided new reserve‑based debt, underscoring disciplined execution.
CEO George Maxwell highlighted the momentum: “We completed another successful year in 2025 and have started 2026 with positive momentum as we continue to execute on our major projects. Our track record of consistently delivering results at or above guidance continued in Q4 2025 with very strong sales and solid production performance.” He added that the successful start of the Phase Three program is a key driver of the company’s growth trajectory and a testament to the team’s operational expertise.
Investors responded positively to the drilling success and the company’s strong 2025 performance. The announcement reinforced confidence in VAALCO’s ability to generate reserve replacement and maintain high margins in Gabon, a core region of its portfolio.
The drilling results position VAALCO to bring a production well online in the first quarter of 2026, further accelerating the company’s goal of 30,000 barrels per day on the Etame Marin block. The confirmation of a sizable oil‑in‑place reserve strengthens the company’s long‑term development plan and supports its broader strategy of expanding production in mature offshore basins while keeping costs low.
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