• Vaalco reports new oil discoveries at Etame field offshore Gabon
• Pilot wells confirm reservoir continuity, up to 3.2 million barrels
• Production well to start in first quarter of 2026

The Etame oil field offshore Gabon has delivered new drilling results as part of ongoing operations. U.S. operator Vaalco Energy said on Thursday, Jan. 15, 2026, it had obtained results from the third phase of its offshore drilling program, launched in December 2025.

The company launched the campaign to assess additional oil potential. GlobalData estimates the field has already produced about 88.4% of its total recoverable reserves.

Two pilot wells were drilled. The first, ET-15P, confirmed the presence of reservoirs in line with pre-drill expectations. Data suggest the zones are connected to existing producing wells, pointing to a continuous reservoir. Vaalco estimates this part of the field could hold 2.4 million to 3.2 million barrels of oil in place.

The well also encountered oil-bearing intervals at greater depth, supporting continuity of the petroleum system in that area. A second well, ET-15P-ST1, intersected several oil-bearing intervals, though further analysis is under way to determine their commercial potential.

Following the results, Vaalco launched a production well that is expected to come online in the first quarter of 2026. “We are encouraged with the successful start of our Phase Three Drilling Program offshore Gabon,” Chief Executive George Maxwell said.

In 2024, the company outlined a roughly $300 million investment plan for its Etame permit, including new drilling and work on existing facilities. Vaalco said it aims to produce 30,000 barrels per day by 2026 on the Etame Marin block, where it holds a 58.8% operating interest. The company has set 2026 as a benchmark year to assess the industrial impact of the strategy announced two years earlier. Output is expected to recover after a 2025 decline linked to maintenance-related well shutdowns.

Egypt remains Vaalco’s biggest source of revenue, but Gabon delivers its strongest margins due to lower government royalties. For the first nine months of 2025, Gabon received $20.6 million in royalties and taxes on revenue of $152 million, leaving a net margin of $132 million. In Egypt, $67.7 million paid to the government reduced net profit to $102.8 million on sales of $171.1 million.

Abdel-Latif Boureima