Vaalco Energy Inc (NYSE/LSE: EGY), an African-focused independent energy company, has announced completion of the First Exploration Phase work commitments at Block CI-705 offshore Côte d'Ivoire, along with government approval to proceed to the Second Exploration Phase. The company, which farmed into and became operator of the licence in March 2025 with a 70% working interest, described the first-phase results as encouraging. The progression marks a meaningful step in Vaalco's organic growth strategy across its multi-country African portfolio, and investors will be watching for further exploration milestones ahead of a committed well drill by end of 2028.

Key Points

  • Vaalco Energy Inc (NYSE/LSE: EGY), headquartered in Houston and listed on both the New York Stock Exchange and London Stock Exchange
  • Vaalco has completed the First Exploration Phase at Block CI-705 and received government approval to enter the Second Exploration Phase offshore Côte d'Ivoire
  • The Second Exploration Phase requires further seismic reprocessing, relinquishment of 25% of the exploration block, and a commitment to drill an exploration well by end of 2028
  • Investors should watch for updates on seismic reprocessing outcomes and progress toward the 2028 exploration well commitment

Vaalco Farms Into CI-705 as Operator with 70% Working Interest in Prolific Ivoirien Basin

Vaalco farmed into exploration licence CI-705 in March 2025, taking on operatorship with a 70% working interest. The block sits in the Ivoirien Basin, approximately 70 kilometres west of Vaalco's existing CI-40 Block, where the Baobab and Kossipo oil fields are located. The Ivoirien Basin is described in the announcement as prolific, and the company stated that recent nearby discoveries are on trend with CI-705, providing what it characterised as additional validation of its play concepts. The proximity to established assets gives Vaalco a degree of operational familiarity with the regional geology.

First Exploration Phase Completed Through Seismic and Well Data Evaluation

The First Exploration Phase work commitments centred on the evaluation and interpretation of existing seismic and well data. The announcement states the company was encouraged by these results, citing prospectivity in play types proven across the Ivoirien Basin, including both structural and stratigraphic traps in the Upper Cretaceous and Albian geological sections. Chief Executive Officer George Maxwell noted the company sees encouraging prospectivity on the block and expressed confidence in the view of the block's potential, though no specific resource estimates or financial figures were disclosed in the announcement.

Second Exploration Phase Commits Vaalco to Drill Well at CI-705 by End of 2028

Having secured government approval to advance, Vaalco's Second Exploration Phase obligations include further seismic reprocessing, the relinquishment of 25% of the exploration block area, and a firm commitment to drill an exploration well by the end of 2028. The relinquishment requirement is a standard regulatory condition in many African exploration licences. The drill commitment represents a concrete near-term capital obligation for investors to monitor, though the associated cost has not been disclosed in the announcement.

CI-705 Forms Part of Vaalco's Broader African Growth Strategy Across Four Countries

Vaalco operates across Gabon, Egypt, Côte d'Ivoire, and Equatorial Guinea, combining cash-generating production assets with development and exploration opportunities. The company states it has transformed from a single-asset producer into a multi-country African operator since 2021. The CI-705 block represents part of its self-described self-funded organic project pipeline. Key risks include early-stage exploration uncertainty, the obligation to relinquish a portion of the block, and the execution risk associated with delivering a drilled well within the committed timeframe.