US-based Vaalco Energy drilled and completed five development wells in Egypt during the third quarter of 2026 and completed two additional wells in October, bringing the total to seven, as Egyptian oil sales rose 38% year on year to $235.9 million in the first nine months, according to the company’s latest financial and operational results.
The drilling programme began in May with the HE-9 development well in the Gulf of Suez, completed in early June, followed by further development drilling during the summer. Vaalco has also undertaken well repairs, reactivations, water shut-off treatments and production optimisation activities to increase output and support reserve recovery from its Egyptian assets.
“In Egypt, we continue with our successful drilling program that is profitably increasing production,” said George Maxwell, Vaalco’s chief executive.
Egyptian oil sales reached $235.9 million during the first nine months of 2026, up from $171.1 million a year earlier. Net revenue increased to $127.6 million from $102.9 million, while sales volumes rose to 3.11 million barrels from 2.91 million barrels.
The increase in sales reflected both higher volumes and stronger realised oil prices. Vaalco’s average selling price in Egypt rose to approximately $75.75 per barrel from $58.64 a year earlier, indicating that price gains accounted for a substantial share of revenue growth.
In the third quarter alone, Egyptian oil sales totalled $83.2 million, down from $86.4 million in the preceding quarter as average realised prices declined. However, sales volumes increased to approximately 1.07 million barrels from 1.03 million, lifting net revenue to $45.3 million from $43.4 million.
Across its international operations, Vaalco reported a third-quarter net loss of $39.8 million, compared with a $42.4 million profit in the previous quarter and $1.1 million in net income a year earlier. The loss included $34.7 million in unrealised hedging losses and $22.3 million in realised losses on commodity derivatives.
Despite the reported loss, adjusted earnings before interest, taxes, depreciation, amortisation and exploration expenses (EBITDAX) rose 30% quarter on quarter to $71.1 million, nearly three times the $23.7 million recorded a year earlier.
Company-wide production increased 21% from the second quarter to 20,145 barrels of oil per day on a net revenue interest basis, with higher output reported across Egypt, Gabon and Côte d’Ivoire.
Vaalco invested $86.9 million in capital expenditure during the quarter, covering drilling in Egypt, development activities in Gabon and the restart and expansion of operations in Côte d’Ivoire. The company did not disclose a separate investment figure for its Egyptian drilling campaign.
In Gabon, Vaalco completed a five-well development campaign at the Etame field, contributing to an increase of nearly 2,500 barrels per day in working-interest production compared with a year earlier.
In Côte d’Ivoire, production resumed at the offshore Baobab field in June, followed by the first crude oil lifting in August. The company began another drilling campaign in September, with its first production well expected online near the end of 2026 and additional wells planned for the first half of 2027.
Vaalco plans to maintain active drilling programmes in Egypt and Côte d’Ivoire in 2027 as it targets further production growth across its African portfolio. Maxwell said the company expects to generate free cash flow in the second half of 2027, provided commodity prices remain strong.
The company has not disclosed the number of additional wells planned in Egypt for 2027 or the production contribution expected from the seven wells completed this year.
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