VAALCO Energy, Inc.

Good morning, everyone, and welcome to the Valco Energy's third quarter 2025 conference call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star and then one. To withdraw your questions, you may press star and two. Please also note today's event is being recorded. At this time, I'd like to turn the floor over to Al Petrie, Investor Relations Coordinator. Sir, please go ahead.

Thank you, Operator. Welcome to Valco Energy's third quarter 2025 conference call. After I cover the far-looking statements, George Maxwell, our CEO, will review key highlights of the third quarter. Ron Bain, our CFO, will then provide a more in-depth financial review. George will then return for some closing comments before we take your questions. During our question and answer session, we asked you to limit your questions to one and a follow-up. You can always re-enter the queue with additional questions. I'd like to point out that we posted a supplemental investor deck on our website that has additional financial analysis, comparison, and guidance that should be helpful. With that, let me proceed with our forward-looking statement comments. During the course of this conference call, the company will be making forward-looking statements. Investors are cautioned that forward-looking statements are not guarantees of future performance, and those actual results or developments may differ materially from those projected in the forward-looking statements. Falco disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Accordingly, you should not place undue reliance on forward-looking statements. These and other risks are described in our earnings release, the presentation posted on our website, and in the reports we file with the SEC, including our Form 10-K. Please note that this call is being recorded. Let me turn the call over to George.

Thank you, Al. Good morning, everyone, and welcome to our third quarter 2025 Earnings Conference Call. For over two years, Every quarterly earnings call we have met or exceeded our production guidance, consistently leading to strong operational and financial results. The third quarter was no different, with NRI production of 15,405 BOE per day, which was at the high end of guidance, working interest production of 19,887 BOE per day, was above the midpoint of guidance and NRI sales of 12,831 BOE per day, which was also at the high end of guidance. Our production and sales performance through the first nine months of 2025 has been so strong that we have raised the midpoint of our full year production and sales guidance by about 5%, while also further reducing our capital guidance by almost 20%. and maintaining our operating expenses virtually flat. Ron will go into more detail about our guidance later in this call, but we believe that maintaining operational excellence and consistent production across our portfolio is essential to continued strong adjusted EBITDAX generation, which will assist us in funding organic growth initiatives while positioning us as a larger player in the industry. In the first nine months of 2025, we have delivered net income of $17.2 million, or 0.16 cents per share, and adjusted EBITDAX of $130.5 million. It is important to remember that 2025 is a transitional year and everything remains on track with our forecasts. Production came offline in Q1 at Côte d'Ivoire due to the FPSO project and we do not expect to start the drilling campaign in Gabon until late Q4, as we await the drilling rig's completion of its current commitments. This means that the meaningful production uplift we are projecting for these major projects won't begin until 2026 and into 2027. I would now like to go through and provide a quick update on our diverse portfolio of high-quality assets, beginning with Côte d'Ivoire. In line with the project timeline, the FPSO ceased hydrocarbon operations as scheduled on January 31st, 2025, with the final lifting of crude oil from the vessel occurring in early February. The vessel departed from the field in late March and arrived at the shipyard in Dubai ahead of schedule in mid-May 2025. The FPSO refurbishment is well underway in the shipyard. Significant development drilling is expected to begin in 2026 after the FPSO returns to service with potential meaningful additions to production from the main Baobab field. We now have a 10-year extension of the license on CI40, extending it to 2038. In March 2025, we announced a farming agreement for the CI705 block offshore Cote d'Ivoire, where we will operate with a 70% working interest and a 100% paying interest. In Q2, we received seismic data for the block and we are conducting a detailed integrated geological analysis to assess and mature our understanding of the block's overall prospectivity, as well as the basin's overall potential. We believe the block is favourably located in a proven hydrocarbon system and is approximately 70 kilometres to the west of our CI40 block. We have demonstrated our ability to acquire, develop and enhance value through accretive acquisitions and we are excited about the prospects in Côte d'Ivoire. Moving to Gabon, given that we haven't drilled a well in Gabon in over two years, we are very pleased with the positive overall production results, including strong production uptime and improved decline curves on the wells in 2025. In July, we successfully completed a planned full field maintenance shutdown of the Gabon platforms to perform safety inspections and necessary maintenance. This is the first time we have had to perform a full field shutdown in Gabon since the FSO was brought online in 2022. This has helped to contribute to the strong uptime numbers in Gabon that we have had over the past several years, which can be seen in our supplemental presentation. While we secured a drilling rig in December 2024 for our 2025-2026 drilling campaign, the timing of when we start the drilling program has always been dependent on the rig's completion of its existing commitments. The rig is now being released and moving to Gabon. As we discussed in the Capital Markets Day, We have some very strong drilling opportunities and the additional data gathered during the upcoming drilling program will help us high-grade and de-risk additional well locations that have already been identified. We plan to begin the drilling program on the Itami field platform and we are currently planning on moving to the Iburi wells later in the program because of the current robust production profile of these wells. In particular, we remain very pleased with the extended flow test on the Brewery 4H well which is continuing to surpass our initial expectations. We originally wanted to gather information on the H2S concentrations at this location to aid in equipment design and to evaluate our chemical crude sweetening process. The 4H well has now flowed for all of 2025 at a gross average of around 1,000 barrels of oil per day, with the H2S concentration within our modelling expectations, demonstrating our ability to chemically treat the oil. The well's production has helped Gabon exceed its production guidance in 2025, while adding some additional production costs for chemicals. Regarding our exploration blocks in Gabon, the Nyosi Marine and the Gaduma Marine, we are working in conjunction with our partners and the operator BW Energy on plans for the two blocks moving forward. A seismic survey to fulfill a work commitment on Iose is being planned for acquisition in late 2025 or early 2026. Given the proximity of these blocks to the prolific producing fields of Itami and Disafu, we are excited about the future possibilities for these blocks. Turning to Egypt, In the fourth quarter of 2024, we contracted a rig and drilled two wells starting a drilling campaign that has carried into the first nine months of 2025. We have drilled and completed multiple wells in the first nine months of 2025 and are continuing activity into the fourth quarter. We are very pleased with the operational performance and efficiency of the drilling program, which contributes to minimizing costs. We've been able to drill more wells faster and cheaper than what we had in the budget and for the same amount of capital which has also positively impacted the production. We also continue to work over and re-complete wells in Egypt. Both the drilling program and the work over program in Egypt add solid production and are economic even in lower commodity price environments. We are continuing to evaluate the exploration results in South Gazlap where the wells are encountering both oil and gas net pay zones with different levels of reservoir pressure. We are incorporating well results and updating our understanding of the area with new mapping that will determine potential additional prospectivity for the area. In March 2024, we announced the finalisation of documents in Equatorial Guinea related to the Venus Block P Plan of Development. This summer we began our front-end engineering design or FEED study. The FEED is complete and confirms the technical viability of our Plan of Development but also highlights some of the risks and challenges from the shelf location. We have expanded this review to explore more efficient development opportunities through a sub-sea development which would also significantly simplify the drilling operations and well design and this is currently underway. We are very excited to proceed with our plans to develop, operate and begin producing from the Discovery and Block P offshore equatorial guinea in the next few years. Turning to Canada, we successfully drilled and completed four wells in 2024. We also drilled a well in the southern acreage in late 2024 that could help us better understand the acreage and upside in that area. While we remain optimistic about the drillable inventory in Canada, we decided to postpone our Canadian drilling program in 2025 due to the current commodity price environment. We will continue to monitor the performance of our wells and plan for future drilling opportunities. Before I turn the call over to Ron, I would like to thank our hard-working team who continue to operate and execute our strategic vision and help us deliver these outstanding results. We are well positioned to execute the projects in our enhanced portfolio and our proven track record of success in these past few years to instil confidence for our future. With that, I'd like to turn the call over to Ron to share our financial results.