Vaalco Energy reported a 30% increase in oil sales from its Egyptian operations in the second quarter of 2026 compared with the previous quarter, generating $86.4 million, according to a company statement.
The higher sales contributed to an 11% rise in net profit from the company’s Egypt operations over the same period, reaching $43.4 million.
Vaalco’s Egyptian production averaged 11,282 barrels of oil equivalent per day on a working-interest basis in the second quarter, compared with 11,264 boe/d in the first quarter of 2026 and 10,929 boe/d a year earlier. On a net revenue interest basis, Egypt’s production averaged 7,389 boe/d, down from 7,644 boe/d in the first quarter and 7,612 boe/d in the second quarter of 2025.
The company began drilling the HE-9 development well in the Gulf of Suez in May, completed it in early June, and later drilled two additional development wells, both of which were completed in July.
Vaalco said it is continuing its Egypt drilling program in the third quarter of 2026, along with workovers, well interventions, well reactivations, water shut-off treatments, and production optimization activities.
The company also reduced its trade receivables in Egypt from 31.6millionattheendof2025to31.6millionattheendof2025to12.9 million as of June 30, 2026. Egypt fully cleared its $6.1 billion backlog of overdue payments to international oil companies in June 2026 after paying it down through regular monthly schedules over two years. The government is currently committed to repaying foreign partner dues on a monthly basis.
Across its global operations, Vaalco posted net profit of 42.4millioninthesecondquarterof2026,comparedwith42.4millioninthesecondquarterof2026,comparedwith13.2 million in the same period of 2025, supported by higher sales, stronger realized prices, hedging gains, and lower exploration expenses.
The company’s average commodity price rose to 80.77perboeinthesecondquarter,comparedwith80.77perboeinthesecondquarter,comparedwith57.21 per boe in the first quarter and $54.87 per boe a year earlier.
“In Q2 2026, we had strong sales volumes and increased realized pricing while we continued to positively progress our asset campaigns in Côte d’Ivoire, Gabon and Egypt,” Vaalco CEO George Maxwell said. “This drove improved earnings of 42.4millionor42.4millionor0.39 per diluted share and $54.8 million in Adjusted EBITDAX.”
Vaalco’s total sales volumes increased 48% quarter-on-quarter, mainly due to the timing of liftings, the loading and sale of produced crude in Gabon, and higher Egyptian sales.
The company’s capital expenditures totaled $103.6 million in the second quarter, covering drilling activities in Egypt and Gabon as well as Baobab FPSO work in Côte d’Ivoire.
Outside Egypt, Vaalco advanced drilling and production in Gabon, bringing the Ebouri-5H well online in June and continuing work at the SEENT platform. In Côte d’Ivoire, production from the Baobab field resumed in June after FPSO refurbishment, with first crude lifting planned for August and a new drilling campaign scheduled for September.
The company also progressed development of the Kossipo field, where it holds a 60% working interest. In Equatorial Guinea, Vaalco is moving forward with plans for the Venus discovery and is targeting a final investment decision in the fourth quarter of 2026.
Founded in 1985, Vaalco Energy holds a portfolio of production, development, and exploration assets across Gabon, Egypt, Côte d’Ivoire, Equatorial Guinea, and Nigeria.
