Vaalco Energy, the US-based operator, said it began a six‑well drilling program in Egypt in the second quarter of 2026. The campaign was not included in the original budget and will proceed without increasing the company’s total capital expenditure guidance, noted a company statement.
Vaalco’s production in Egypt mounted to 11,264 barrels of oil equivalent per day (boe/d) in the first quarter (Q1) of 2026, compared to 10,225 boe/d in Q1 2025. For the second quarter (Q2) of 2026, it expects production to range between 10,400 and 11,500 boe/d.
The company said on May 7 that it completed the drilling of 22 wells as part of a drilling program that kicked off in December 2024, with all wells reaching their targets. The campaign continued throughout 2025, with the final well brought online in January 2026. The well, located in the H-Field in the Eastern Desert, opened a new development area with an initial flow rate of approximately 450 boe/d.
The company also highlighted bolstered liquidity in its Egyptian operations, driven by a successful reduction in trade receivables. Outstanding balances fell from $31.6 million at the end of December 2025 to $24.2 million as of March 31, 2026.
Beyond Egypt, VAALCO reported progress across its African assets, including new wells in Gabon and developments offshore Côte d’Ivoire.
“We began 2026 by divesting all of our Canadian assets, and increased our future growth potential in Côte d’Ivoire by being confirmed as operator with a 60% WI in the Kossipo field,” said George Maxwell, CEO of Vaalco Energy.
Despite stronger operational performance in Egypt and other African assets, Vaalco’s profits declined in Q1 of 2026 due to hedging losses, lower sales volumes, and higher exploration spending.
The company reported a net loss of $93.8 million in Q1 of 2026, compared with a net loss of $58.6 million in the previous quarter.
Adjusted Earnings Before Interest, Taxes, Depreciation, Amortization, and Exploration expenses (EBITDAX) stood at $11.6 million in Q1 2026, down from $57 million in Q1 2025, primarily due to lower sales volumes and weaker realized pricing.
Looking ahead, the company expects stronger financial performance in the coming quarters, supported by the sale of additional crude cargoes, higher prices, and increased production guidance for 2026
Founded in 1985, Vaalco is an energy company headquartered in Houston, Texas, with operations across Egypt, Gabon, Côte d’Ivoire, Equatorial Guinea, and Nigeria.
