Research from Water Tower Research, Water Tower Research

Water Tower Research

Research from Water Tower Research

Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

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<ul><li>A diverse portfolio of exploration and development projects exposes Vaalco to significant production and proved reserve growth through the end of the decade.</li><li>In the intermediate term, growth is expected in Gabon during 2026 from the Phase 3 drilling campaign that is scheduled to begin in September.</li><li>The anticipated return of the FPSO to the Baobab field in Côte d’Ivoire in 2Q26 should restore production in the field and be followed by a Phase 5 development program, which is expected to add volumes in 2027.</li></ul>

A diverse portfolio of exploration and development projects exposes Vaalco to significant production and proved reserve growth through the end of the decade.In the intermediate term, growth is expected in Gabon during 2026 from the Phase 3 drilling campaign that is scheduled to begin in September.The anticipated return of the FPSO to the Baobab field in Côte d’Ivoire in 2Q26 should restore production in the field and be followed by a Phase 5 development program, which is expected to add volumes in 2027.

VAALCO Energy, Inc: Project Portfolio Supports Long-Term Volume Growth Potential

Equity Capital Markets and Advisory Business, Auctus Advisors

Auctus Advisors

Equity Capital Markets and Advisory Business

Auctus Advisors is a specialist Equity Capital Markets and Advisory business with a focus in the Energy Sector. The partners have complementary skill sets, with decades of experience across Equity Capital Markets, Investment Banking and the Energy industry. We have worked at Société Générale, Canaccord Capital, BMO Capital Markets and Schlumberger. Most recently we have worked together for many years at GMP FirstEnergy. Auctus has been set up at the beginning of a new decade in which we see significant opportunities in the Energy space. Globally, demand for energy is at record levels and continues to grow. Conversely, investment in traditional energy sources has been severely constrained. We believe this imbalance creates opportunities for both companies and investors. Auctus provides Corporate Broking, Equity Research and Investment Banking services.

<ul>
<li>During the capital markets day last week, Vaalco outlined a production growth profile reaching &gt;45 mboe/d in 2029 and 50 mboe/d in 2030 – surpassing the peak production of ~40 mboe/d that we had anticipated.</li>
<li>Production is expected to reach ~30 mboe/d by mid-2026 , driven by the 2025/2026 drilling program in Gabon and the restart of production at Baobab in Côte d’Ivoire (CI).</li>
<li>The next major increase is forecasted for 3Q28, with the start-up of Venus in EG, adding +20 mbbl/d gross production.</li>
</ul>


During the capital markets day last week, Vaalco outlined a production growth profile reaching &gt;45 mboe/d in 2029 and 50 mboe/d in 2030 – surpassing the peak production of ~40 mboe/d that we had anticipated.
Production is expected to reach ~30 mboe/d by mid-2026 , driven by the 2025/2026 drilling program in Gabon and the restart of production at Baobab in Côte d’Ivoire (CI).
The next major increase is forecasted for 3Q28, with the start-up of Venus in EG, adding +20 mbbl/d gross production.


Vaalco Energy (NYSE: EGY): The Road to 50 Mboe/D by 2030

<ul><li>• 1Q25 WI production of 22,402 boe/d was at the high end of expectations.</li><li>The Ebouri well continues to produce at ~1 mbbl/d (gross) on test.</li><li>• Cash flow from operations was US$32.7 mm, while capex of US$58 mm came in below projections.</li></ul>

• 1Q25 WI production of 22,402 boe/d was at the high end of expectations.The Ebouri well continues to produce at ~1 mbbl/d (gross) on test.• Cash flow from operations was US$32.7 mm, while capex of US$58 mm came in below projections.

Vaalco Energy (NYSE: EGY): Strong quarter. Resilient to low oil price

<ul>
<li>4Q24 production was 25,300 boe/d; which is in line with our expectations.</li>
<li>The YE24 WI 2P reserves were estimated at 96.1 mmboe) Adjusting for the acquisition of the Ivory Coast assets, the company has organically replaced over 100% of the FY24 production of ~9 mmboe.</li>
<li>This exceeds our expectations and reflects the strong performance of Vaalco’s various assets.</li>
</ul>


4Q24 production was 25,300 boe/d; which is in line with our expectations.
The YE24 WI 2P reserves were estimated at 96.1 mmboe) Adjusting for the acquisition of the Ivory Coast assets, the company has organically replaced over 100% of the FY24 production of ~9 mmboe.
This exceeds our expectations and reflects the strong performance of Vaalco’s various assets.


Vaalco Energy (NYSE: EGY): Two large projects to boost FY26 production

<ul>
<li>Vaalco has farmed into the CI-705 block offshore Côte d’Ivoire.</li>
<li>Vaalco will become operator of the block with a 70% WI and a 100% paying interest though a commercial carry arrangement.</li>
<li>The partners are Ivory Coast Exploration Oil &amp; Gas (ICE) and PETROCI.</li>
</ul>


Vaalco has farmed into the CI-705 block offshore Côte d’Ivoire.
Vaalco will become operator of the block with a 70% WI and a 100% paying interest though a commercial carry arrangement.
The partners are Ivory Coast Exploration Oil &amp; Gas (ICE) and PETROCI.


Vaalco Energy (NYSE: EGY): Adding exploration upside in Cote d’Ivoire

United States

VAALCO Energy, Inc. acquires, explores, and develops crude oil and natural gas properties. The Company owns producing properties and conducts exploration activities in the Philippines and Gabon, and has interest in the Texas Gulf Coast area. VAALCO, through participation in a partnership, has additional international exploration interests in South and North America and Africa.

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VAALCO Energy (EGY US)

VAALCO Energy, Inc: Project Portfolio Supports Long-Term Volume Growth Potential

A diverse portfolio of exploration and development projects exposes Vaalco to significant production and proved reserve growth through the end of...

Water Tower Research

Vaalco Energy (NYSE: EGY): The Road to 50 Mboe/D by 2030

Production is expected to reach ~30 mboe/d by mid-2026 , driven by the 2025/2026 drilling program in Gabon and the restart of production at Baobab...

Auctus Advisors

Vaalco Energy (NYSE: EGY): Strong quarter. Resilient to low oil price

• 1Q25 WI production of 22,402 boe/d was at the high end of expectations. The Ebouri well continues to produce at ~1 mbbl/d (gross) on...

Auctus Advisors

Vaalco Energy (NYSE: EGY): Two large projects to boost FY26 production

The YE24 WI 2P reserves were estimated at 96.1 mmboe) Adjusting for the acquisition of the Ivory Coast assets, the company has organically replaced...

Auctus Advisors

Vaalco Energy (NYSE: EGY): Adding exploration upside in Cote d’Ivoire

Vaalco will become operator of the block with a 70% WI and a 100% paying interest though a commercial carry arrangement.The partners are Ivory...

Auctus Advisors

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