VAALCO Energy, Inc.

Good morning, and welcome to the Valco Energy fourth quarter and full year 2025 earnings conference call. All participants will be in 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 then one on your telephone keypad. To withdraw your question, please press star, then two. Please note, this event is being recorded. I would now like to turn the conference over to Al Petrie, Investor Relations Coordinator. Please go ahead.

Thank you, Operator, and welcome to Valco Energy's fourth quarter and foe year 2025 conference call. After I cover the forward-looking statements, George Maxwell, our CEO, will review key highlights of the fourth 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 ask 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 within the meaning of federal securities laws. As a reminder, these statements are based upon our current beliefs as well as certain assumptions and information currently available to us as we discuss in more detail in our fourth quarter in year-end 2025 earnings release, and a Form 10-K for the year end of 2025, we expect to file on or before March 16, 2026. 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. Valco 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 the reports we file with the SEC, including our Form 10-K. We will also refer to certain non-GAAP financial measures, including adjusted EBITDAX, whose reconciliation you will find in the fourth quarter in year-end 2025 earnings release and in our slide deck. Please note that this conference call is being recorded, and let me turn the call over to George. Thank you, Al.

Good morning, everyone, and welcome to our fourth quarter and full year 2025 earnings conference call. Over the past three years we have delivered outstanding operational and financial results including generating over $750 million in adjusted EBITDAX while meeting or exceeding our quarterly guidance targets. Maintaining operational excellence and consistent production across our portfolio is essential to increasing our adjusted EBITDAX which has allowed us to expand our portfolio and also to fund organic growth initiatives, better positioning Valco for the future. We recently divested all of our Canadian assets and we added to our Cote d'Ivoire position by being named operator with a 60% working interest in the Kisapo field on block CI40. Last year we added an exploration block CI705 in Cote d'Ivoire and are working with our partners on the seismic acquisition and processing at Niossi Marine and Gduma Marine Blocks offshore Gabon. In addition, we drilled our first exploration well in Gabon since 2013 during Q1 2026, and although unsuccessful, combined with the new exploration portfolio in Gabon and CDI, we have created a more balanced portfolio between production, development and high-quality prospective assets. We have accomplished many things in these past five years growing Valco from a single asset delivering around 5,000 barrels a day to a diversified multi-country operator well on our way to achieving our goal of 50,000 barrels of oil equivalent per day. We have over the past several years, in addition to growing production, reserves and adjusted EBITDAX, has been a sustained commitment to returning cash to shareholders. In 2025, we returned another $26.5 million in dividends and since Q4 2021, we have returned over $115 million to our shareholders through dividends and share buybacks. As we discuss our operational and financial results today, it is important to remember that 2025 was a transitional year for Volco as production came offline in Q1 at Côte d'Ivoire due to the FPSO project and we did not start the drilling campaign in Gabon until late Q4. This means that the meaningful production uplift we are projecting from these major projects won't begin until later this year 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. I'd like to remind you that we had no production or interest in Côte d'Ivoire prior to April 2024, when we made the Svenska acquisition, securing a valuable asset with Beobab on the CI40 block. In line with the project timeline, the FPSO at Beobab ceased hydrocarbon operations as scheduled on January 31, 2025, with the final lifting of crude from the vessel occurring in early February. The vessel departed from the field in late March and arrived in the shipyard in Dubai ahead of schedule in mid-May 2025. The FPSO refurbishment went very well and the FPSO departed Dubai in early February 2026 en route back to Côte d'Ivoire. The vessel is currently off the coast of South Africa and continues to be on track to return to Baobab with the field restarting in Q2 2026. Significant development drilling is expected to begin later this year after the FPSO returns to service with a drilling programme which includes three producers, two to three injectors and two workovers providing potential meaningful additions to production from the main Baobab field where we have a 10 year extension to the licence to 2038. The current drilling plan on Bay of Isle is to begin drilling on a batch basis the top hole sections of all five wells. The completions will then be commenced and we expect at least one well to be on full production by year end. In March 2025, we announced a form in agreement for the CI705 block offshore Côte d'Ivoire where we will operate with a 70% working interest and a 100% paying interest through the seismic reprocessing and interpretation stages and potentially drilling up to two exploration wells. The block is favourably located in a proven hydrocarbon system and is approximately 70 kilometres to the west of our CI40 block, which contains 1.2 billion barrels of oil equivalent of stoip. We receive 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. In accordance with the CI40 PSC, Valco and Petra C elected a sole risk development of the Kisipo field. In February 2026, Valco was confirmed as operator with a 60% working interest in the Kisipo field on the CI40 block just 8km from Baobab field. We are now working on a field development plan using new ocean bottom node seismic data that is expected to help de-risk and enhance our evaluation and development plan. The Kisapo field was discovered in 2002 with the Kisapo 1X well and later appraised in 2019 with the Kisapo 2A well which tested at over 7,000 bars of oil per day. Our current assessment has a field with an estimated gross 2C resources of approximately 102 million barrels of oil equivalent and 293 millions of barrels of oil equivalent in place. So in less than two years, we have established a sizable position in Côte d'Ivoire with considerable upside potential to help us achieve our production growth targets in a significant and high demand hydrocarbon basin. 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 three years, we are pleased with the overall positive production results we saw in 2025. In July 2025, 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 that we have had to perform a full field shutdown at Gabon since the FSO was brought online in 2022. In the fourth quarter of 2025, we began our phase three drilling program in Gabon with the drilling of two pilot wells in the Itami field. Based on the pilot well results, we proceeded with the drilling of the Itami 15HST development well on the 1V block of Itami in December 2025. The rig remained on the Itami platform to drill an exploration prospect in West Itam. While the well encountered 10 metres of high-quality gamba sands, the target zone was water-bearing and not commercial. The lower portion of the well will be plugged and abandoned, but the well bore will be utilised and sidetracked in the upper portion of the well to drill the ET148 development well in the main fault block of Itami that was de-risked from the results of the earlier pilot wells. When we committed to drilling the Itam West exploration well, we knew there was geological risk of not encountering commercial sands, but the size of the potential resource made it a risk worth taking. Furthermore, we purposely designed the well so we could still utilise the wellbore to drill a development well into a known productive area if the sands were non-commercial. We are now working to drill the sidetrack well, which should be completed in April. After completing our programme at the Atami platform, we expect to move the drill rig to the Scent and Iburi platforms, where we have several wells and workovers planned to enhance production, lower costs and potentially add reserves. Regarding our exploration blocks in Gabon, the Nyosi Marine and Gaduma Marine, we are working with our partners and the operator on plans for the two blocks moving forward. We commenced a seismic survey in November of 2025, which was completed in the first quarter of 2026. This survey completed part of the Exploration Work Programme commitment for these blocks. Further evaluation and interpretation of the results are expected to continue into the second and third quarters of 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, for the past year we had contracted a rig and drilled 20 wells across a drilling campaign that helped to increase production year over year in 2025. We are very pleased with the operational performance and efficiency of the drilling programme which contributes to minimising costs. we have been able to drill eight extra wells faster and cheaper than what we had budgeted for the same amount of capital, which has also positively impacted production. In conjunction with our drilling programme, we also continue to perform production optimisations, workovers and re-completions that have significantly improved our production performance. While we wrapped up the drilling programme in the fourth quarter of 2025, the very good results drilled at the end of the year have resulted in Q1 2026 producing consistently above 11,000 barrels of oil per day and well above our budget of 10,700 barrels of oil per day. We plan to continue optimisations, workovers and re-completions in 2026 focused on production enhancement, where we finalise our development and exploration opportunities for the upcoming drilling campaign. In the Western Desert, work is ongoing to evaluate and integrate the results of our last exploration well in South Gazalat. This well has confirmed the presence of both oil and gas. The long-term test and pressure monitoring that we have carried out has confirmed the connection of the oil-bearing zone to a larger volume. Based on this, we are updating our subsurface mapping, prospective evaluation and volume estimation in order to put together the appropriate economic field development plan for our acreage. We are particularly pleased with the progress our team made in our Egyptian receivables in 2025. Ron will discuss this in more detail, but we are now essentially on a current billing basis with eGPC. On February 5th, 2026, we announced an agreement for the sale of all of our Canadian assets to a third party for approximately $25.5 million, which equates to 2.7 times our trailing 12 months operational cash flow. The Canadian properties were producing approximately 1,850 barrels of oil per day at the time of sale, and the sale closed in February 2026, as expected. As Ron reviews our production guidance for 2026, keep in mind that our first quarter and full year 2026 results will only include January and a prorated February through the 19th Canadian production and financial results. We believe we had extracted significant value from the Canadian assets including almost $65 million in operating cash flow since their acquisition. While we believe the Canadian assets are solid, we decided to focus on our core assets and their significant upside potential. With all of the large-scale drilling campaigns underway or planned in those areas, we determined that now was the right time to sell. Turning to Equatorial Guinea, in March 2024, we announced the finalisation documents of the Equatorial Guinea related to the Venus Block P plan of development. Last 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 on the shelf location. We have expanded this review to explore more efficient development opportunities through a sub-seed development versus the original shelf development, which would also significantly simplify the drilling operations and well design, and this evaluation is currently underway. We are 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. Before I turn the call over to Ron, I would like to highlight some positives with our 2025 year-end reserve results. Our SEC reserves were prepared by NSAI, an independent third-party engineering firm that has provided annual independent estimates of Valco's year-end SEC reserves for over 16 years. While SEC-approved reserves at year-end decreased modestly year-over-year by 5% to 43 million barrels of oil equivalent, we did see 4 million barrels of oil equivalent of positive revisions, additions and extensions, which replaced two-thirds of our 2025 production of 6 million barrels of oil equivalent. Also, with the Phase 3 drilling programme in Gabon starting near the end of 2025 and the FPSO returning and drilling at Baobab starting in 2026, We expect to see more additions and extensions related to our organic drilling programme in 2026 and 2027. Additionally, despite lower average SEC pricing of around $70 per barrel, our SEC Proved Reserve PV10 increased 8% from $379 million to $410 million due to positive revisions, offset by widening differentials in Gabon and a decrease in year-over-year SEC prices. Year-end 2025 SEC reserves included a 17.5 million bar of oil equivalent improved developed reserves and 25.5 million bar of oil equivalent improved undeveloped reserves. Turning to our 2p CPR estimate, which includes proven and probable reserves, using Valco's management's assumptions for future pricing and cost reported on a working interest basis prior to deduction of government royalties, we also saw a small year-over-year decrease of 6% to 73.7 million barrels of oil equivalent. Despite this, the 2P CPR NPV10 saw a 26% increase to $859 million at year-end 2025. We have a strong runway of opportunities that will continue to add value, and as you can see from our SEC-approved reserves, 2P CPR reserves and corresponding PV10 values compared to our current market cap, our stock price remains undervalued. In closing, we have an outstanding diversified portfolio of assets that have significant upside opportunities. We have been focused on growing production, reserves and value for our shareholders. I'd like to thank our hardworking team who continue to operate and execute our plans. Over the past several years, we have significantly diversified our portfolio, enhancing our capacity to generate operational cash flow and adjusted EBITDAX while returning capital to shareholders and increasing our credit facility capacity. We are well positioned to execute the projects in our enhanced portfolio and our proven track record of success these past few years should instil confidence for our future. With that, I would like to turn the call over to Ron to share our financial results.