Vaalco Energy, Inc. (NYSE: EGY, LSE: EGY) reported operational updates on its offshore Gabon drilling program, including results from the ETBNM-3 well and the start of drilling on the ETSEM-3PH well, according to a press release dated Aug. 5, 2026.

The company said it successfully drilled, completed, and placed into production the ETBNM-3 gas-supply well in the crestal portion of the North Tchibala structure, targeting the Dentale D-15 reservoir. Reservoir properties exceeded pre-drill estimates, with porosity and permeability described as strong and more than 10 meters of net reservoir pay recorded.

The well is intended to supply gas for field operations, liftings, and power needs, reducing reliance on higher-priced diesel fuel. The company said the well will not directly add to production or sales volumes. Vaalco added that it is evaluating shallower pay intervals in the D-9 and D-12 zones, which appear to contain wet gas to light oil pay.

On July 27, the drilling rig was moved to a new slot on the SEENT platform to begin the ETSEM-3PH pilot hole. The pilot well is designed to test the original field oil-water contact and the potential of the underlying Dentale formation. Following the pilot well, a horizontal development well is planned with a 300-meter completion length within the Gamba sands.

Chief Executive Officer George Maxwell said, "The newly successful gas well won't add production or sales directly but will reduce costs associated with using higher priced diesel; this should improve field uptime and potentially add production uplift to existing wells over time."

Vaalco is a Houston, Texas-based independent energy company with assets in Gabon, Egypt, Côte d'Ivoire, and Equatorial Guinea.