THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION

VAALCO ENERGY, INC. ANNOUNCES SECOND QUARTER 2026 RESULTS

HOUSTON - August 7, 2026  - VAALCO Energy, Inc. (NYSE: EGY, LSE: EGY) ("Vaalco" or the "Company") today reported operational and financial results for the second quarter 2026. Additionally, the Company provided operational and financial guidance for the third quarter and full year of 2026.  

Second Quarter 2026 Highlights and Recent Key Items:

•      Sold 17,812 net revenue interest ("NRI")⁽¹⁾ barrels of oil equivalent per day ("BOEPD"), above the midpoint of guidance, and up 47% from Q1 2026;

◦      Forecasting Q3 2026 sales volumes to increase slightly to a range between 17,200 and 18,900 NRI barrels of oil per day ("BOPD");

•      Restarted production in June 2026 at the Baobab field in offshore Côte d'Ivoire, as planned, following a major refurbishment of the Floating Production Storage and Offloading vessel ("FPSO");

•      Produced 21,796 working interest ("WI")⁽²⁾ BOEPD or 16,688 NRI⁽¹⁾ BOEPD an increase of about 10% compared to Q1 2026;

◦      Including a full quarter of production from Côte d'Ivoire, Q3 2026 production is expected to be between 19,600 and 21,600 NRI BOPD, a 23% increase compared to Q2 2026 (at the midpoint of guidance);

•      Reported net income of $42.4 million ($0.39 per diluted share), driven by significantly increased sales, lower exploration expense and a non-cash gain on derivative instruments, compared with Q1 2026;

•      Generated Adjusted EBITDAX⁽³⁾ of $54.8 million, an increase of almost five times from $11.6 million in Q1 2026;

◦      Q2 2026 included two liftings in Gabon and increased sales in Egypt;

◦      Q3 2026 is expected to have two liftings in Gabon, continued increased Egyptian sales and the first 2026 lifting in Côte d'Ivoire;

•      Affirmed the elevated full year 2026 NRI production and sales volumes that were raised in May by 8% and 12%, respectively at the midpoint, while maintaining 2026 capital budget guidance unchanged even with additional drilling in Egypt included;

•      Invested $103.6 million in capital expenditures, which included the successful start to the Gabon Phase Three Drilling Program, completion of Côte d'Ivoire FPSO Dry Dock refurbishment and key drilling materials and services for the upcoming 2026 drilling campaign in Côte d'Ivoire;

•      Reduced trade receivables in Egypt even further from $31.6 million at December 31, 2025 to $12.9 million at June 30, 2026; and

•     Declared quarterly cash dividend of $0.0625 per share of common stock to be paid on September 22, 2026.

(1)   All NRI sales and production rates are Vaalco's working interest volumes less royalty volumes, where applicable.

(2)   All WI production rates and volumes are Vaalco's working interest volumes, where applicable.

(3)   Adjusted EBITDAX, Adjusted Net Income (Loss), Free Cash Flow and Net Debt are Non-GAAP financial measures and are described and reconciled to the closest GAAP measure in the attached table under "Non-GAAP Financial Measures."

George Maxwell, Vaalco's Chief Executive Officer, commented, "The first half of 2026 has seen material changes to Vaalco across our growing and diversified portfolio. We increased our future growth potential in Côte d'Ivoire by being confirmed as operator with a 60% WI in the Kossipo field and divested all of our Canadian assets adding material cash to the balance sheet. We have drilled and brought online multiple wells in our Gabon drilling campaign. The FPSO at the Baobab field in offshore Côte d'Ivoire was brought back online from a yearlong refurbishment and the field was successfully restarted with production commencing in June 2026. We also resumed our successful drilling program in Egypt in May 2026. 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. The strong first half results and our expectation of continued operational execution have given us the confidence to affirm our increased full year production and sales guidance for 2026. We have delivered positive results in 2026, meeting or exceeding expectations, driven by our successful drilling programs and capital investments."

Mr. Maxwell concluded, "As we look at the second half of 2026, we are projecting significant increases in production and strong sales, which coupled with continued attractive pricing should generate solid operational cash flow and Adjusted EBITDAX generation. We are completing the Gabon drilling campaign, expanding the successful Egyptian drilling campaign and starting the Phase Five Drilling Program at Baobab that should provide material production uplift in 2027. We remain confident in our strategic vision with continued operational success coupled with our recently increased full year 2026 production and sales guidance without increasing 2026 capital guidance. Vaalco is well positioned to deliver material organic production growth."