EGY Reports Higher-Than-Expected Oil Flows From Etame 14H, Sets Stage for Profitable 2026
Etame 14H Delivers Strong Production Results Exceeding Initial Expectations
VAALCO Energy, Inc. (NYSE:EGY, LSE:EGY) has released a positive operational update highlighting significant progress at its Gabon offshore operations. The standout highlight: the Etame 14H development well, drilled in an attic position within the Main Fault Block of the Etame field, has been completed and put on production, delivering an impressive 4,850 gross barrels of oil per day (BOPD), including 2,850 BOPD net to VAALCO. The well encountered 325 meters of net pay in high-quality Gamba reservoir sands, with porosity and permeability exceeding expectations.
| Well | Reservoir Type | Net Pay (m) | Gross BOPD | Net BOPD to EGY | Key Takeaway |
|---|---|---|---|---|---|
| Etame 14H | Gamba (Main Fault Block, Attic) | 325 | 4,850 | 2,850 | High-quality sands, Better-than-expected flow |
Ebouri Platform and Baobab FPSO Advancements Signal Ongoing Growth Potential
Elsewhere in Gabon, VAALCO has mobilized its drilling rig to the Ebouri platform. Drilling has begun on the EEBOM-5H development well, targeting an updip/attic position via sidetracking from a previously abandoned well (EEBOM-5P). The company also plans to work over two additional wells at the Ebouri site. This proactive drilling approach underlines VAALCO’s emphasis on extracting further value from existing fields.
Meanwhile, in Côte d'Ivoire, the Baobab Ivorien Floating Production Storage and Offloading Vessel (FPSO) has completed a comprehensive 47-day refurbishment and has arrived back onsite. The FPSO is in the process of reconnecting risers and umbilicals, with production restart on track for the end of Q2 2026. Timely completion of these infrastructure projects is expected to support incremental production in the coming months.
Management’s Outlook: 2026 Expected to Be Profitable as Projects Come Online
Chief Executive Officer George Maxwell commented, “We are very pleased with the initial well rates from Etame 14H and look forward to further production additions from our ongoing Gabon campaign. The Baobab FPSO’s reinstallation in Côte d'Ivoire remains on track, positioning us strongly for the second half of the year.” Maxwell stressed the importance of continued execution and growth from organic capital programs, signaling potential value creation for shareholders through the remainder of 2026 and beyond.
| Project | Status | Expected Impact |
|---|---|---|
| Etame 14H (Gabon) | Online, Flowing | Immediate incremental oil production |
| EEBOM-5H (Gabon) | Drilling commenced | Potential to boost near-term output |
| Baobab FPSO (Côte d'Ivoire) | Reinstallation in progress | Restart expected by Q2 2026 end |
Key Takeaway for Investors
VAALCO’s operational update highlights both outperformance at its flagship Etame asset and disciplined execution on development projects, positioning the company for meaningful growth and profitability in 2026. With additional wells planned and the Baobab field primed to restart, shareholders and sector watchers have a reason to keep EGY on their radar through the second half of the year and beyond.
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