Vaalco Energy, an American independent oil and gas company, drilled and completed five development wells in Egypt during the third quarter (Q3) of 2026, in addition to completing two additional wells in October, the company’s  Q3 2026 operational and financial results press release noted.

Vaalco said it would continue to successfully execute workovers, well interventions, well reactivations, water shut-off treatments, and production optimization activities that are contributing to the organic growth of the Company’s production and reserves in Egypt.

In May 2026, Vaalco began drilling the HE-9 development well in the Gulf of Suez and completed it in early June, followed by two additional development wells completed in July.

“In Egypt, we continue with our successful drilling program that is profitably increasing production,” said George Maxwell, CEO of Vaalco Energy.

Vaalco reported a net loss of $39.8 million in Q3 2026, including $34.7 million in unrealized hedging losses, compared with net income of $42.4 million in Q2 2026 and $1.1 million in Q3 2025.

The decline in earnings from Q2 was driven primarily by hedging losses and depletion expenses, partially offset by higher revenues than in Q3 2025.

Despite the net loss, the company’s adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDAX) came  30% quarter-on-quarter (QoQ) to $71.1 million, nearly three times the Q3 2025 level, supported by higher realised commodity prices and sales volumes.

“The third quarter results continue to demonstrate our ability to successfully execute on our strategy as we deliver on our forecasts and grow production in a strong commodity price environment,” Maxwell said.

Vaalco completed its drilling campaign in Gabon, bringing the ETSEM-3H development well online and releasing the drilling rig in early October. The campaign included five wells at the Etame field, contributing to a year-on-year (YoY) increase of nearly 2,500 bbl/d in working interest production.

In Côte d’Ivoire, the company resumed production at the offshore Baobab field in June and completed its first sales lifting in August. It subsequently launched its Phase Five drilling campaign in September, targeting completion of the first well by the end of 2026, with additional wells expected to come online during the first half of 2027.

Founded in 1985, Vaalco maintains a diversified portfolio of production, development, and exploration assets across Egypt, Gabon, Côte d’Ivoire, Equatorial Guinea, and Nigeria.