Vaalco Energy, an American independent oil and gas company, reported on Sunday, August 9, 2026, 30% increase in oil sales from its Egyptian operations during the second quarter (Q2) of 2026 compared to the previous quarter, generating $86.4 million. The increased sales were reflected in an 11% increase in net profit from the Egyptian operation over the same period, to $43.4 million, according to a statement by Vaalco.
Vaalco’s Egyptian production averaged 11,282 barrels of oil equivalent per day (boe/d) on a working-interest basis during Q2, compared with 11,264 boe/d in Q1 of 2026, and 10,929 boe/d a year earlier. On a net revenue interest (NRI) basis, Egypt’s production averaged 7,389 boe/d, compared to 7,644 boe/d in Q1 of 2026, and 7,612 in Q2 of 2025.
The company began drilling the HE-9 development well located in the Gulf of Suez in May, completed it in early June, and subsequently drilled two additional development wells, both of which were completed in July. According to the statement, Vaalco is continuing its drilling program in Egypt in Q3 2026, alongside workovers, well interventions, well reactivations, water shut-off treatments, and production optimization activities.
Vaalco reduced its trade receivables in Egypt from $31.6 million at the end of 2025 to $12.9 million by June 30, 2026. Egypt fully cleared its $6.1 billion backlog of overdue debts to international oil companies (IOCs) in June 2026 after paying it down via regular monthly schedules over two years.
Currently, the government is committed to repaying foreign partner dues every month. Vaalco as a whole reported net profit of $42.4 million in Q2 of 2026, compared with $13.2 million in Q2 2025, supported by higher sales, stronger realized prices, hedging gains, and lower exploration expenses.
The company’s average commodity price increased to $80.77/boe in Q2, compared with $57.21/boe in Q1 and $54.87/boe a year earlier. Commenting on the company’s performance, Vaalco CEO George Maxwell said, “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.
This drove improved earnings of $42.4 million or $0.39 per diluted share and $54.8 million in Adjusted EBITDAX.” Vaalco’s total sales volumes increased 48% quarter-on-quarter (QoQ), a hike primarily attributable to the timing of liftings, the loading and sale of produced crude in Gabon, alongside increased Egyptian sales.
Vaalco Energy’s Q2 capital expenditures totaled $103.6 million, covering Egyptian and Gabon drilling and Baobab FPSO works in Côte d’Ivoire. Out of Egypt, the company had an eventful quarter; it advanced drilling and production in Gabon during the quarter, bringing the Ebouri‑5H well online in June and continuing work at the SEENT platform.
In Côte d’Ivoire, output from the Baobab field resumed in June after FPSO refurbishment, with first crude lifting slated for August and a new drilling campaign set for September. The company also progressed development of the Kossipo field, where it holds a 60% working interest.
In Equatorial Guinea, Vaalco is moving ahead with plans for the Venus discovery and targets a final investment decision in Q4 2026.