Vaalco Energy, a US-based energy company, completed drilling four development wells in the Eastern Desert during the fourth quarter (Q4) of 2025. Three wells were completed during the quarter, with the fourth finished in January 2026. The drilling program included an exploration well in the H-Field in the Eastern Desert, opening a new development area with an initial flow rate of approximately 450 barrels of oil equivalent per day (boe/d).
The company also continued interventions, workovers, and optimization activities throughout the fourth quarter of 2025 to enhance production levels. Vaalco expects average production from its activities in Egypt to range between 10,300 and 11,400 boe/d in the first quarter (Q1) of 2026, according to a press release dated March 12.
“In 2025, we completed another year where we delivered consistent quarterly results that either met or exceeded our guidance. We repeatedly raised production and sales guidance in 2025 and continued to deliver on those increased ranges,” said George Maxwell, CEO of Vaalco Energy.
The Egyptian government reduced its outstanding receivables to Vaalco, bringing the balance down to $31 million by the end of 2025, compared with $113 million at the start of the year.
For its financial results, Vaalco reported total revenue of $30 million in Q4 2025, marking a 49% increase from Q3 2025, driven by higher production and sales volumes. Despite revenue growth, the company posted a net loss of $58.6 million compared with net income of $1.1 million in Q3 2025. The decline was primarily “due to a non-cash impairment charge of $67.2 million related to Canadian assets held for sale”, according to the release. This means that the drop in earnings mainly reflects an accounting adjustment: the company reduced the reported value of Canadian assets it plans to sell. This adjustment doesn’t involve actual cash outflow, but it lowers the company’s reported profit.
For the whole year, Vaalco reported a net loss of $41.4 million in 2025, compared with net income of $58.5 million in 2024, mainly due to the above-mentioned $67.2 million non-cash impairment charge, along with lower realized oil prices and reduced sales volumes, particularly in Côte d’Ivoire.
In February 2026, Vaalco completed the sale of all its producing Canadian assets for approximately $25.5 million, which were producing about 1,850 boe/d.
Alongside its operations in Egypt, the company kicked off its third phase drilling campaign in Q4 of 2025 at the Etame Marin Block offshore Gabon.
