VAALCO Energy, Inc.

Good day and welcome to the Valco Energy second quarter 2026 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 a touch-tone phone. To withdraw your question, please press star then two. Please note that this event is being recorded. I would now like to turn the conference over to Landis Blackburn, Director of Investor Relations and FPNA. Please go ahead.

Thank you, operator. Welcome to Valco Energy's second quarter 2026 conference call. After I cover the forward-looking statements, George Maxwell, our CEO, will review key highlights of the second quarter. Ron Bain, our CFO, will then provide a more in-depth financial review. George will then return for some closing comments before you 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. We would like to point out that we posted a supplemental investor deck on our website that has additional financial analysis, comparisons, 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, this conference call is being recorded. Let me turn the call over to George.

Thank you, Landis. Good morning, everyone, and welcome to our second quarter 2026 earnings conference call. Over the past two years, we have streamlined and expanded our portfolio while delivering consistently solid operational results. In the first half of 2026, we have made material changes to our growing and diversified portfolio. We divested all of our Canadian assets while increasing our Côte d'Ivoire position. We were named operator with a 60% working interest in the Kisapo field on the CI40 block that had two discoveries drilled in the field and is located only 8km from Baobab. We are actively evaluating and processing seismic with our partners in Niossi Marine and Gaduma Marine blocks offshore Gabon and on our exploration block CI705 in Côte d'Ivoire. The Baobab FPSO successfully completed its refurbishment and the field resumed production in June as planned. At Itami, we continued to execute on our drilling campaign. All of these events have led to improving financial results driven by increases in production and sales that we believe will continue into the second half of 2026. We delivered $42.4 million in net income and $54.8 million in adjusted EBITDAX in the second quarter. We continue to deliver our increased sales and production targets, all while maintaining our capital expenditures in line with guidance. We are confident in our ability to continue and consistently execute and deliver value to our shareholders. 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. We were excited to have production resume in Baie-Bab in June 2026. As you know, in line with the project timeline, the FPSO at Baie-Bab ceased hydrocarbon operations in January 2025, spent a year being refurbished in Dubai, and returned to Côte d'Ivoire in April 2026. We are very pleased how well the FPSO refurbishment went and that it was completed within the initial timeline expected. All producing wells online and production is slightly above our pre-startup forecasts, with the first lifting expected later this month. The single Q3 lifting is expected to be about 950,000 gross barrels, but remember that we are a non-operator with a 27.4% ownership. The FPSO refurbishment was undertaken to extend the life of the vessel and to increase its capacity as we begin a significant development drilling programme in Baobab in Q3. This programme includes four producers, two or 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 Baobab is to begin drilling in the third quarter on a batch basis the top hole sections of all wells first. The completions will then commence and we expect at least one well to be on production by year end. With that said, production and sales uplift from the drilling programme at Baobab will not make a significant impact until 2027. In February 2026, in accordance with the CI40 PSC, Valco and Petrosy elected to participate in the development of the Kisapo field. Valco was confirmed as operator with a 60% working interest in the Kisapo field on the CI40 block just 8km from the 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. Our current assessment has a field with an estimated gross 2C resources of approximately 102 million barrels of oil equivalent and 293 million barrels of oil equivalent in place. Also in Côte d'Ivoire, we continue to evaluate the subsurface potential of our new exploration block CI-705, which we operate with a 70% working interest. We continue to see encouraging prospectivity on the block in play types proven throughout the Ivorian Basin, including both structural and stratigraphic traps in the Upper Cretaceous and Albion sections. We have met all current work commitments on the block and have been granted a six-month extension on the first exploration phase, which now extends this phase into Q4 2026. Our subsurface work will continue to mature the encouraging prospectivity we see on block in preparation for a decision later this year to proceed to the second exploration phase, which carries a well commitment. I would like to remind you that we had no assets in Côte d'Ivoire prior to April 2024, so in less than two years, We are excited about the prospects in Côte d'Ivoire and their ability to help us achieve our production growth targets over the next several years. Moving to Gabon In the fourth quarter of 2025, we began our Phase 3 drilling programme. I would like to note that working interest production in Gabon in Q4 2025 was 7,743 bars of oil equivalent per day and declining. This program was designed to reverse decline and increase production by accessing potential attic locations and less swept fault blocks across the Itami field, as well as access deeper potential in the dental and test and exploration prospect from the platform. The program began with the drilling of two pilot wells in the Itami field. One of these was sidetracked and completed as Itami 15-8 development well in the 1V fault block. This well came online in late February, so our Q1 production results had only one month of production from this well, which coupled with decline and some downtime resulted in Q1 working interest production of 7,516 barrels of oil equivalent per day. The rig remained on the Etanid platform to drill an exploration prospect in West Etan. 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 was plugged and abandoned, but the well bore was utilised and sidetracked in the upper portion of the well to drill the ET14-8 development well in the main fault block of Itami that was de-risked from the results of the earlier pilot wells. In late April, the Itami 14-8 was brought online after encountering 325 metres of lateral net pay in high-quality gamba sands in an attic position within the main fault block at Itami. The initial rates exceeded 4,800 gross barrels of oil per day and the well continues to produce about 3,000 gross barrels of oil per day. After completing our programme at the Itami platform, we moved the rig to the Iburi platform where we drilled the Iburi 5H development well. This well had 300 metres of lateral net pay in gamba sands at the crest of the structure and came online in late June with initial rates of about 8,000 gross barrels of oil per day with minimal water cut. While the total fluid rate has remained fairly consistent, the well has increased water production, approaching the field-wide average of about 75-80% water cut. While we expected the water cut to ultimately rise to the field average, the rate at which it has increased was faster than we initially expected, implying more reservoir connectivity than we had originally modelled. We are currently evaluating this well performance with a view to remodelling the aburi structure which should provide better predictability on 5-8 performance. With that said, for Q2 we saw Gabon production increase to over 9,300 working interest barrels of oil equivalent per day with the additional well. We moved the rig to the SEMP platform and drilled the ETBNM3 well, a high GOR gas supply well that was completed a few days ago. Gas rates and volumes are in line with pre-drill estimates and will be used to improve field uptime, reduce costs associated with using higher-priced diesel, and potentially add production uplift to existing wells. The rig has now skidded over to another slot on the SENT platform and is drilling the ETSEM3 pilot hole. The pilot is designed to aid in landing the lateral producer, test the original field oil-water contact and also evaluate the potential of the underlying dental formation. Once the pilot hole is completed, a horizontal development well is planned near the crest of the central fault block in south-east Etam in Tugamba Sands. Upon completion of this horizontal well, we are planning to release the rig and not perform any further drilling or workovers in Gabon in the near term. We have reduced the expected work-over spend in the second half of 2026 from a range of up to £10 million to no spend due to excellent ESP life. This is because the wells in Iburi continue to perform well with the chemical treatment and we do not want to take these wells offline to perform maintenance work-overs until it is necessary. Furthermore, When we do need to work over these wells, we can use our workover unit that we have in-country to perform the workovers at an expected material cost savings compared to using the current drilling rig. Regarding our exploration blocks in Gabon, the Nyosi Marine and the Gaduma Marine, we continue to work with our partners on plans for the two blocks moving forward. We commenced a 3D seismic survey in November of 2025, which was completed in the first quarter of 2026. The survey completed part of the Exploration Work Program commitment for these blocks. Processing of this seismic data has begun with early products expected to arrive later this month. 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 and will continue to mature prospectively using the new seismic data. With the inclusion of the gas well providing fuel, we expect to see a marked reduction in operations costs. In addition, we are reviewing the current operating model of the entire field to look for ways to structurally enhance our business to make the field more cost-effective and efficient as we move forward. We expect this process will lead to a reduction in both capex and opex moving forward. Turning to Egypt, Over the past two years, we have drilled in excess of 20 wells across a drilling campaign that helped to increase production year over year in 2025 and 2026. We are very pleased with the operational performance and efficiency of the drilling programme, which contributes to minimising costs. Given these strong results, we resumed the drilling programme in Egypt in May of this year. We are pleased with the overall production results, which is continuing to drive an increase in production rates into Q3. They are further expanding the scope of the Egyptian drilling programme to include a total of 10 to 15 wells during the year. The corresponding production uplift can be seen in our increased Egyptian guidance with no impact on our overall CAPEX guidance for the year, which Ron will explain in more detail later in this call. They also plan to continue optimisations, workovers and re-completions in 2026 that are focused on production enhancement. Egypt production remains strong as we continue to invest to drill development wells and delineate opportunities in gazolat that could open additional prospects in the future. We will provide further details of the drilling results in our Q3 earnings call. Turning to Equatorial Guinea. In March 2024, we announced the finalisation of documents in Equatorial Guinea related to the Venus Block P plan of development. Last summer, we began a front-end engineering design or feed study. The initial feed study is now 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-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 in Block P offshore. We are targeting Venus FID in Q4 2026. In closing, we have an outstanding diversified portfolio of both producing assets and assets with significant upside opportunities. We are executing our programmes and the second half of 2026 should build on the positive second quarter results. We remain focused on growing production, reserves and value for our shareholders. I would like to thank the hard-working team who continue to operate and execute our plans. Over the past several years, we have significantly diversified our portfolio, enhanced our capacity to generate operational cash flow while returning capital to shareholders and increasing our credit facility capacity. We are well positioned to execute the project in our enhanced portfolio and a proven track record of success these past few years have instilled confidence for the future. With that, I would like to turn the call over to Ron to share our financial results.