VAALCO completes Phase 3 drilling offshore Gabon; final ETSEM-3H well flows about 2,000 bopd
Published in Brief No. 2 ·
Reviewed by Georges C. Nama, Esq., licensed by the Supreme Court of Texas.
Houston-based VAALCO Energy (NYSE/LSE: EGY) announced on 7 October 2026 that its ETSEM-3H development well in the SE Etame field offshore Gabon was drilled, completed and brought on production at a stabilized initial rate of about 2,000 gross barrels of oil per day (1,140 net to VAALCO), with what the company reported as 300 metres of net pay in Gamba reservoir sands. The company said ETSEM-3H was the final well of its Phase 3 campaign, that the programme is now complete and that the Borr Norve rig has been demobilized. VAALCO separately reported that Baobab Phase 5 drilling has begun offshore Cote d’Ivoire, with a first new producer expected online near the end of 2026.
VAALCO is a U.S.-listed operator whose core production sits in Gabon under a production-sharing contract, so completion of a multi-well infill programme and rig demobilization bear on field economics, cost-recovery entitlements and the state and partner allocations that U.S. investors and lenders track. It is a concrete marker of continued U.S. corporate upstream exposure in the CEMAC and OHADA zone, and the kind of operational milestone that can precede financing, reserve re-estimates or asset-level transactions.
What it means for U.S. companies
VAALCO is a U.S.-listed operator whose core production sits in Gabon under a production-sharing contract. Completing a multi-well Phase 3 infill programme and demobilizing the rig bear on field economics, cost-recovery entitlements and the state and partner allocations that U.S. investors and lenders track. The ETSEM-3H well flows about 2,000 gross barrels a day, 1,140 net to VAALCO. It is a concrete marker of continued U.S. upstream exposure in the CEMAC and OHADA zone, and the kind of operational milestone that can precede financing, reserve re-estimates or asset-level transactions.
Related reading
Our oil, gas and energy practice page explains how we draft and review joint operating agreements, farmouts, drilling and gas sales contracts, and host government agreements for U.S. companies and investors. Our Africa–U.S. transactions page covers deal structuring, due diligence and cross-border compliance, including the U.S. Foreign Corrupt Practices Act. For deals in OHADA member states, our OHADA and francophone Africa page covers company formation, contracts, security and arbitration under the OHADA Uniform Acts. Before you sign, read 5 Mistakes That Sink Africa–U.S. Deals (and How to Avoid Them), and find every item of this week’s report in the Energy Intelligence Brief.
Sources: VAALCO Energy (company press release via GlobeNewswire) ↗ · StockTitan (GlobeNewswire syndication) ↗
Share this news
Does this development affect your deal? Book a free 30-minute consultation before you sign.
Book a consultationThe Energy Intelligence Brief summarizes publicly available information and links to its sources. It is general information, not legal advice, and reading it does not create an attorney-client relationship. Facts can change after publication; always check the official source.