Cairo:Vaalco Energy, an American independent oil and gas company, has successfully drilled and completed five development wells in Egypt during the third quarter of 2026. Additionally, the company completed two more wells in October, as highlighted in its Q3 2026 operational and financial results press release.
According to State Information Service Egypt, Vaalco is continuing with various activities such as workovers, well interventions, well reactivations, water shut-off treatments, and production optimization. These initiatives are aimed at fostering the organic growth of the company's production and reserves in Egypt.
Vaalco's drilling efforts in the Gulf of Suez saw the beginning of the HE-9 development well in May 2026, which was completed by early June, followed by two additional wells completed in July. CEO George Maxwell stated that the ongoing drilling program in Egypt is profitably increasing production.
However, the company reported a net loss of $39.8 million in Q3 2026, which included $34.7 million in unrealized hedging losses. This compares to a net income of $42.4 million in Q2 2026 and $1.1 million in Q3 2025. The decline in earnings from Q2 was mainly due to hedging losses and depletion expenses, albeit higher revenues than in Q3 2025 provided some offset.
Despite the net loss, Vaalco's adjusted earnings before interest, taxes, depreciation, and amortization (EBITDAX) rose 30% quarter-on-quarter to $71.1 million, nearly triple the level of Q3 2025, supported by higher realized commodity prices and sales volumes. Maxwell emphasized that the third quarter results reflect the company's ability to execute its strategy effectively and grow production within a strong commodity price environment.
The company also concluded its drilling campaign in Gabon, bringing the ETSEM-3H development well online and releasing the drilling rig in early October. This campaign included five wells at the Etame field, contributing to a nearly 2,500 barrels per day year-on-year increase in working interest production.
In Côte d’Ivoire, Vaalco resumed production at the offshore Baobab field in June and completed its first sales lifting in August. It launched its Phase Five drilling campaign in September, aiming to complete 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.