VAALCO Energy (EGY) Water Tower Research Insights Conference summary

Strategic overview and asset portfolio

• Portfolio expanded to include production, development, and exploration in Egypt, Gabon, Côte d'Ivoire, and Equatorial Guinea.

• Focus on increasing footprint in established jurisdictions and leveraging technical skills for new opportunities.

• West Africa offers attractive production sharing contracts and fiscal stability, reducing fiscal risk.

• Long-term growth target of 50,000 BOEs/day by 2030, supported by organic portfolio and new projects.

• Prudent balance sheet management guides project sequencing and capital allocation.

Operational performance and near-term plans

• 2025 production exceeded guidance, with strong performance in Egypt and Gabon; Côte d'Ivoire to restart in May 2026.

• Accelerated drilling program in Egypt considered for Q2 2026 to capitalize on recent field performance.

• Gabon drilling campaign continues, with new wells expected to enhance production through 2027.

• Côte d'Ivoire FPSO refurbishment completed; production restart and drilling campaign scheduled for mid-2026.

• Kossipo development plan in Côte d'Ivoire targeted for submission by end of 2026, with first production expected in 2030.

Capital expenditure and financial management

• 2026 CapEx guidance is $290M–$360M, with major investments in Côte d'Ivoire and Gabon.

• Debt facility up to $300M secured, with dividends funded from operating free cash flow, not debt.

• Project sequencing balances long-term investments with short-cycle returns to maintain financial flexibility.

• Volatile oil prices influence timing of projects, enabling acceleration of onshore activities like Egypt drilling.