VAALCO Energy, Inc. has begun its Phase Three Drilling Program offshore Gabon by spudding the ET‑15 infill well on the Etame platform, marking the first drilling activity under the program. The move signals a concrete step toward the company’s goal of unlocking hydrocarbon potential in its African portfolio.
The program is designed to enhance production, lower costs, and potentially add reserves across the Etame, SEENT and Ebouri platforms. By targeting infill wells and workovers, VAALCO aims to improve field recovery and extend the life of its existing assets, positioning the company for stronger output in 2026 and beyond.
CEO George Maxwell said the rig arrived in late November and that the ET‑15 well will be followed by additional wells and workovers at the other platforms. He described the campaign as a “series of value‑creation catalysts” that will drive meaningful growth in the coming years, underscoring the company’s confidence in the program’s execution and its alignment with long‑term strategy.
The drilling announcement comes after VAALCO reported Q3 2025 results that showed a net income of $1.1 million, a decline from $8.4 million in Q2 2025 and $11.0 million in Q3 2024. Revenue fell to $61 million, reflecting lower realized pricing and a July maintenance shutdown in Gabon. The company’s focus on cost discipline and capital discipline in the face of volatile commodity prices sets the context for the new drilling initiative, which is intended to offset the recent revenue dip and support future growth.
Looking ahead, VAALCO plans to move the rig to the SEENT and Ebouri platforms after completing the Etame program. The company expects the drilling campaign to increase production and reserve replacement, thereby improving margins and providing a stronger foundation for the 2026 operating outlook. The program’s success will be a key driver of VAALCO’s long‑term value creation strategy.
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