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What changed in VAALCO ENERGY INC /DE/'s 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of VAALCO ENERGY INC /DE/'s 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+153 added−187 removedSource: 10-K (2026-03-16) vs 10-K (2025-03-17)

Top changes in VAALCO ENERGY INC /DE/'s 2025 10-K

153 paragraphs added · 187 removed · 112 edited across 5 sections

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

92 edited+30 added−74 removed179 unchanged
Biggest changeAlthough we are not able to enumerate all potential risks to our business resulting from these and other similar events, we believe that such risks include, but are not limited to, the following: • disruption to our supply chain for materials essential to our business, including restrictions on importing and exporting products; • customers, suppliers and other third parties arguing that their non-performance under our contracts with them is permitted as a result of force majeure or other reasons; • cybersecurity attacks, particularly as digital technologies may become more vulnerable and experience a higher rate of cyberattacks in the current environment of remote connectivity; • any reductions of our workforce to adjust to market conditions, including severance payments, retention issues, and possible inability to hire employees when market conditions improve; • logistical challenges, including those resulting from border closures and travel restrictions, as well as the possibility that our ability to continue production may be interrupted, limited or curtailed if workers and/or materials are unable to reach our offshore platforms and FSO charter vessel or our counterparties are unable to lift crude oil from our FSO charter vessel; • economic, political and regulatory conditions domestically and internationally, including imposition of tariffs or other tax incentives or disincentives; • we may be materially adversely affected by the effects of sanctions and other penalties imposed on Russia by the U.S., the European Union and other countries; and • we may experience a structural shift in the global economy and our demand for crude oil, natural gas and NGLs as a result of changes in the way people work, travel and interact, or in connection with a global recession or depression.
Biggest changeAlthough we are not able to enumerate all potential risks to our business resulting from these and other similar events, we believe that such risks include, but are not limited to, the following: • disruption to our supply chain for materials essential to our business, including restrictions on importing and exporting products; • customers, suppliers and other third parties arguing that their non-performance under our contracts with them is permitted as a result of force majeure or other reasons; • cybersecurity attacks, particularly as digital technologies may become more vulnerable and experience a higher rate of cyberattacks in the current environment of remote connectivity; • any reductions of our workforce to adjust to market conditions, including severance payments, retention issues, and possible inability to hire employees when market conditions improve; • logistical challenges, including those resulting from border closures and travel restrictions, as well as the possibility that our ability to continue production may be interrupted, limited or curtailed if workers and/or materials are unable to reach our offshore platforms, our FPSO vessel and our FSO charter vessel or our counterparties are unable to lift crude oil from our FPSO vessel or our FSO charter vessel; • economic, political and regulatory conditions domestically and internationally, including imposition of tariffs or other tax incentives or disincentives; • we may be materially adversely affected by the effects of sanctions and other penalties imposed on Russia by the U.S., the European Union and other countries; and • we may experience a structural shift in the global economy and our demand for crude oil, natural gas and NGLs as a result of changes in the way people work, travel and interact, or in connection with a global recession or depression. 36 Table of Contents In 2025 and continuing into 2026, the current U.S. presidential administration has implemented wide-ranging policy changes and issued numerous executive actions on topics including international trade, energy resources, corporate taxes, global climate change initiatives, employment practices, corporate compliance programs and environmental regulations, among other matters.
There can be 39 Table of Contents no assurance that our internal control policies and procedures, compliance mechanisms or monitoring programs will protect us from recklessness, fraudulent behavior, dishonesty or other inappropriate acts or adequately prevent or detect possible violations under applicable anti-bribery and anti-corruption legislation.
There can be no assurance that our internal control policies and procedures, compliance mechanisms or monitoring programs will protect us from recklessness, fraudulent behavior, 39 Table of Contents dishonesty or other inappropriate acts or adequately prevent or detect possible violations under applicable anti-bribery and anti-corruption legislation.
Our operations are subject to risks of loss due to civil strife, acts of war, acts of terrorism, piracy, disease, guerrilla activities, insurrection, military activities and other political risks, including tension and confrontations among political parties, that may result in: • volatility in global crude oil prices, which could negatively impact the global economy, resulting in slower economic growth rates, which could reduce demand for our products; • negative impact on the world crude oil supply if infrastructure or transportation are disrupted, leading to further commodity price volatility; • difficulty in attracting and retaining qualified personnel to work in areas with potential for conflict; • the inability of our personnel or supplies to enter or exit the countries where we are conducting operations; • disruption of our operations due to evacuation of personnel; • the inability to deliver our production due to disruption or closing of transportation routes; • a reduced ability to export our production due to efforts of countries to conserve domestic resources; • damage to or destruction of our wells, production facilities, receiving terminals or other operating assets; • the incurrence of significant costs for security personnel and systems; • damage to or destruction of property belonging to our commodity purchasers leading to interruption of deliveries, claims of force majeure, and/or termination of commodity sales contracts, resulting in a reduction in our revenues; • the inability of our service and equipment providers to deliver items necessary for us to conduct our operations resulting in a halt or delay in our planned exploration activities, delayed development of major projects, or shut-in of producing fields; • a lack of availability of drilling rig, oilfield equipment or services if third party providers decide to exit the region; • the imposition of U.S. government or international sanctions that limit our ability to conduct our business; • a shutdown of a financial system, communications network, or power grid causing a disruption to our business activities; and • a capital market reassessment of risk and reduction of available capital, making it more difficult for us and our joint owners to obtain financing for potential development projects.
Our operations are subject to risks of loss due to civil strife, acts of war, acts of terrorism, piracy, disease, guerrilla activities, insurrection, military activities and other political risks, including tension and confrontations among political parties, that may result in: • volatility in global crude oil prices, which could negatively impact the global economy, resulting in slower economic growth rates, which could reduce demand for our products; • negative impact on the world crude oil supply if infrastructure or transportation are disrupted, leading to further commodity price volatility; • difficulty in attracting and retaining qualified personnel to work in areas with potential for conflict; • the inability of our personnel or supplies to enter or exit the countries where we are conducting operations; • disruption of our operations due to evacuation of personnel; • the inability to deliver our production due to disruption or closing of transportation routes; • a reduced ability to export our production due to efforts of countries to conserve domestic resources; • damage to or destruction of our wells, production facilities, receiving terminals or other operating assets; • the incurrence of significant costs for security personnel and systems; • damage to or destruction of property belonging to our commodity purchasers leading to interruption of deliveries, claims of force majeure, and/or termination of commodity sales contracts, resulting in a reduction in our revenues; • the inability of our service and equipment providers to deliver items necessary for us to conduct our operations resulting in a halt or delay in our planned exploration activities, delayed development of major projects, or shut-in of producing fields; • a lack of availability of drilling rig, oilfield equipment or services if third party providers decide to exit the region; • the imposition of U.S. government or international sanctions that limit our ability to conduct our business; • a shutdown of a financial system, communications network, or power grid causing a disruption to our business activities; and 38 Table of Contents • a capital market reassessment of risk and reduction of available capital, making it more difficult for us and our joint owners to obtain financing for potential development projects.
Our technologies systems and networks, and those of our business associates may become the target of cybersecurity attacks, including without limitation malicious software, attempts to gain unauthorized access to data and systems, and other electronic security breaches that could lead to disruptions in critical systems and materially and adversely affect our business in a variety of ways, including the following: • unauthorized access to and release of seismic data, reserves information, strategic information or other sensitive or proprietary information, which could have a material adverse effect on our ability to compete for crude oil, natural gas and NGLs resources; • data corruption, communication interruption, or other operational disruption during drilling activities could result in failure to reach the intended target or a drilling incident; • unauthorized access to and release of personal identifying information of employees and vendors, which could expose us to allegations that we did not sufficiently protect that information and potential liabilities under domestic and international data and privacy laws; • a cybersecurity attack on a vendor or service provider, which could result in supply chain disruptions that could delay or halt operations; • a cybersecurity attack on third-party gathering, transportation, processing, fractionation, refining or export facilities, which could delay or prevent us from transporting and marketing our production, resulting in a loss of revenues; • a cybersecurity attack involving commodities exchanges or financial institutions could slow or halt commodities trading, thus preventing us from engaging in hedging activities, resulting in a loss of revenues; and • business interruptions, including use of social engineering schemes and/or ransomware, could result in expensive remediation efforts, distraction of management, damage to our reputation, or a negative impact on the price of our common stock.
Our technologies systems and networks, and those of our business associates may become the target of cybersecurity attacks, including without limitation malicious software, attempts to gain unauthorized access to data and systems, and other electronic security breaches that could lead to disruptions in critical systems and materially and adversely affect our business in a variety of ways, including the following: • unauthorized access to and release of seismic data, reserves information, strategic information or other sensitive or proprietary information, which could have a material adverse effect on our ability to compete for crude oil, natural gas and NGLs resources; • data corruption, communication interruption, or other operational disruption during drilling activities could result in failure to reach the intended target or a drilling incident; 35 Table of Contents • unauthorized access to and release of personal identifying information of employees and vendors, which could expose us to allegations that we did not sufficiently protect that information and potential liabilities under domestic and international data and privacy laws; • a cybersecurity attack on a vendor or service provider, which could result in supply chain disruptions that could delay or halt operations; • a cybersecurity attack on third-party gathering, transportation, processing, fractionation, refining or export facilities, which could delay or prevent us from transporting and marketing our production, resulting in a loss of revenues; • a cybersecurity attack involving commodities exchanges or financial institutions could slow or halt commodities trading, thus preventing us from engaging in hedging activities, resulting in a loss of revenues; and • business interruptions, including use of social engineering schemes and/or ransomware, could result in expensive remediation efforts, distraction of management, damage to our reputation, or a negative impact on the price of our common stock.
As a result, we may be unable to obtain adequate funding under the 2025 Facility. If funding is not available when needed, or is available only on unfavorable terms, it could adversely affect our development plans as currently anticipated, which could have a material adverse effect on our production, revenues and results of operations.
As a result, we may be unable to obtain adequate funding under the 2025 RBL Facility. If funding is not available when needed, or is available only on unfavorable terms, it could adversely affect our development plans as currently anticipated, which could have a material adverse effect on our production, revenues and results of operations.
The occurrence of certain of these events may have a material adverse effect on our business, results of operations and financial condition. If crude oil, natural gas or NGLs prices decline, we expect that the estimated quantities and present values of our reserves will be reduced, which may necessitate further write-downs.
The occurrence of certain of these events may have a material adverse effect on our business, results of operations and financial condition. If crude oil, natural gas or NGLs prices decline, we expect that the estimated quantities and present values of our reserves will be reduced, which may necessitate write-downs.
Some environmental laws provide for joint and several strict liability for remediation of releases of hazardous substances, rendering a person liable for environmental damage without regard to negligence or fault on the part of such person. As a result, we may incur substantial liabilities to third parties or governmental entities and may be required to incur substantial remediation costs.
Some environmental laws provide for joint and several strict liabilities for remediation of releases of hazardous substances, rendering a person liable for environmental damage without regard to negligence or fault on the part of such person. As a result, we may incur substantial liabilities to third parties or governmental entities and may be required to incur substantial remediation costs.
In the future, we may not be able to access adequate funding under the 2025 Facility as a result of (i) a decrease in our borrowing base due to the outcome of a subsequent borrowing base redetermination, or (ii) an unwillingness or inability on the part of the lenders to meet their funding obligations.
In the future, we may not be able to access adequate funding under the 2025 RBL Facility as a result of (i) a decrease in our borrowing base due to the outcome of a subsequent borrowing base redetermination, or (ii) an unwillingness or inability on the part of the lenders to meet their funding obligations.
The borrowing base under the 2025 Facility may be reduced pursuant to the terms of the 2025 Facility Agreement, which may limit our available funding for exploration and development. We may have difficulty obtaining additional credit, which could adversely affect our operations and financial position.
The borrowing base under the 2025 RBL Facility may be reduced pursuant to the terms of the 2025 Facility Agreement, which may limit our available funding for exploration and development. We may have difficulty obtaining additional credit, which could adversely affect our operations and financial position.
Historically, we have had significant account receivables outstanding from governmental entities in countries where we operate. For example, while EGPC has made regular payments of these amounts owing, the timing of these payments has historically been longer than the normal industry standard.
Historically, we have had significant account receivables outstanding from governmental entities in countries where we operate. For example, while EGPC has made regular payments of these amounts, the timing of these payments have historically been longer than the normal industry standard.
Our exploration, development and production activities are subject to various political, economic and other uncertainties, including but not limited to changes, sometimes frequent or marked, in energy policies or the personnel administering them, expropriation of property, cancellation or modification of contract rights, changes in laws and policies governing operations of foreign-based companies, unilateral renegotiation of contracts by governmental entities, uncertainties as to whether laws and regulations will be applicable in any particular circumstance, uncertainty as to whether we will be able to demonstrate to the satisfaction of the applicable governing authorities compliance with governmental or contractual requirements, redefinition of international boundaries or boundary disputes, foreign exchange restrictions, currency fluctuations, foreign currency availability, royalty and tax increases, changes to tax legislation or the imposition of new taxes, the imposition of production bonuses or other charges and other risks arising out of governmental sovereignty over the areas in which our operations are conducted.
Our exploration, development and production activities are subject to various political, economic and other uncertainties, including but not limited to changes, sometimes frequent or marked, in energy policies or the personnel administering them, expropriation of property, cancellation or modification of contract rights, changes in laws and policies governing operations of foreign-based companies, unilateral renegotiation of contracts by governmental entities, uncertainties as to whether laws and regulations will be applicable in any particular circumstance, uncertainty as to whether we will be able to demonstrate to the satisfaction of the applicable governing authorities compliance with governmental or contractual 37 Table of Contents requirements, redefinition of international boundaries or boundary disputes, foreign exchange restrictions, currency fluctuations, foreign currency availability, royalty and tax increases, changes to tax legislation or the imposition of new taxes, the imposition of production bonuses or other charges and other risks arising out of governmental sovereignty over the areas in which our operations are conducted.
Our Bylaws provide that the Court of Chancery of the State of Delaware (or, if the Court of Chancery does not have jurisdiction, the federal district court for the District of Delaware) shall be the sole and exclusive forum for (i) any derivative action or proceeding brought in the name or right of the Company or on its behalf, (ii) any action asserting a claim for breach of a fiduciary duty owed by any director, officer, employee, stockholder or other agent of the Company to the Company or the stockholders, (iii) any action arising or asserting a claim arising pursuant to any provision of the General Corporation Law of Delaware (the “DGCL”) or any provision of our Restated Certificate of Incorporation, as amended (the “Charter”), or the Bylaws or as to which the DGCL confers jurisdiction on the Court of Chancery of the State of Delaware or (iv) any action asserting a claim governed by the internal affairs doctrine, including, without limitation, any action to interpret, apply, enforce or determine the validity of the Charter or the Bylaws.
Our Bylaws provide that the Court of Chancery of the State of Delaware (or, if the Court of Chancery does not have jurisdiction, the federal district court for the District of Delaware) shall be the sole and exclusive forum for (i) any derivative action or proceeding brought in the name or right of the Company or on its behalf, (ii) any action asserting a claim for breach of a fiduciary duty owed by any director, officer, employee, stockholder or other agent of the Company to the Company or the stockholders, (iii) any action arising or asserting a claim arising pursuant to any provision of the General Corporation Law of Delaware (the “DGCL”) or any provision of our Restated Certificate of Incorporation, as amended (the “Charter”), or the Bylaws or as to which the DGCL confers jurisdiction on the Court of Chancery of the State 48 Table of Contents of Delaware or (iv) any action asserting a claim governed by the internal affairs doctrine, including, without limitation, any action to interpret, apply, enforce or determine the validity of the Charter or the Bylaws.
Due to the lack of necessary banking infrastructure and preparedness by the banking sector and the various government agencies to apply the new regulations, it is foreseeable that we will run the risk of seeing delays in paying our vendors and domiciliation of goods and services into the CEMAC region throughout 2024 and beyond.
Due to the lack of necessary banking infrastructure and preparedness by the banking sector and the various government agencies to apply the new regulations, it is foreseeable that we will run the risk of seeing delays in paying our vendors and domiciliation of goods and services into the CEMAC region throughout 2026 and beyond.
Future reductions in prices, below the average calculated for 2024, would result in the estimated quantities and present values of our reserves being reduced. The forecast prices and costs assumptions assume changes in wellhead selling prices and take into account inflation with respect to future operating and capital costs.
Future reductions in prices, below the average calculated for 2025, would result in the estimated quantities and present values of our reserves being reduced. The forecast prices and costs assumptions assume changes in wellhead selling prices and take into account inflation with respect to future operating and capital costs.
On February 28, 2019, in accordance with certain foreign currency regulatory requirements, the Gabonese branch of the international commercial bank holding the abandonment funds in a U.S. dollar-denominated account transferred the funds to the Central Bank for CEMAC and later converted, at the request of BEAC, the funds in U.S. dollars to franc CFA, the 41 Table of Contents currency of the CEMAC, of which Gabon is one of the six member states.
On February 28, 2019, in accordance with certain foreign currency regulatory requirements, the Gabonese branch of the international commercial bank holding the abandonment funds in a U.S. dollar-denominated account transferred the funds to the Central Bank for CEMAC and later converted, at the request of BEAC, the funds in U.S. dollars to franc CFA, the currency of the CEMAC, of which Gabon is one of the six member states.
In the event the governments of the countries where we operate fail to meet their respective obligations or we are forced to accept payment in foreign currencies, such failures could materially adversely affect our financial and operational results. 34 Table of Contents We are also exposed to third-party credit risk through our banking relationships in the jurisdictions in which we operate.
In the event the governments of the countries where we operate fail to meet their respective obligations or we are forced to accept payment in foreign currencies, such failures could materially adversely affect our financial and operational results. We are also exposed to third-party credit risk through our banking relationships in the jurisdictions in which we operate.
Additional potential risks related to acquisitions include, among other things: • incorrect assumptions regarding the reserves, future production and revenues, or future operating or development costs with respect to the acquired properties, as well as future prices of crude oil, natural gas and NGLs; • decreased liquidity as a result of using a significant portion of our cash from operations or borrowing capacity to finance acquisitions; • significant increases in our interest expense or financial leverage if we incur additional debt to finance acquisitions; • the assumption of unknown liabilities, losses or costs (including potential regulatory actions) that we are not indemnified for or that our indemnity, insurance or other protection is inadequate to protect against; • an increase in our costs or a decrease in our revenues associated with any claims or disputes with governments or other interest owners; • an incurrence of non-cash charges in connection with an acquisition and the potential future impairment of goodwill or intangible assets acquired in an acquisition; • the risk that crude oil, natural gas and NGLs reserves acquired may not be of the anticipated magnitude or may not be developed as anticipated; • difficulties in the assimilation of the assets and operations of the acquired business, especially if the assets acquired are in a new business segment or geographic area; • the diversion of management’s attention from other business concerns during the acquisition and throughout the integration process; • losses of key employees at the acquired businesses; • difficulties in operating a significantly larger combined organization and adding operations; • delays in achieving the expected synergies from acquisitions; • the failure to realize expected profitability or growth; • the failure to realize expected synergies and cost savings; and • challenges in coordinating or consolidating corporate and administrative functions.
Any unidentified problems could result in material liabilities and costs that negatively impact our financial condition. 31 Table of Contents Additional potential risks related to acquisitions include, among other things: • incorrect assumptions regarding the reserves, future production and revenues, or future operating or development costs with respect to the acquired properties, as well as future prices of crude oil, natural gas and NGLs; • decreased liquidity as a result of using a significant portion of our cash from operations or borrowing capacity to finance acquisitions; • significant increases in our interest expense or financial leverage if we incur additional debt to finance acquisitions; • the assumption of unknown liabilities, losses or costs (including potential regulatory actions) that we are not indemnified for or that our indemnity, insurance or other protection is inadequate to protect against; • an increase in our costs or a decrease in our revenues associated with any claims or disputes with governments or other interest owners; • an incurrence of non-cash charges in connection with an acquisition and the potential future impairment of goodwill or intangible assets acquired in an acquisition; • the risk that crude oil, natural gas and NGLs reserves acquired may not be of the anticipated magnitude or may not be developed as anticipated; • difficulties in the assimilation of the assets and operations of the acquired business, especially if the assets acquired are in a new business segment or geographic area; • the diversion of management’s attention from other business concerns during the acquisition and throughout the integration process; • losses of key employees at the acquired businesses; • difficulties in operating a significantly larger combined organization and adding operations; • delays in achieving the expected synergies from acquisitions; • the failure to realize expected profitability or growth; • the failure to realize expected synergies and cost savings; and • challenges in coordinating or consolidating corporate and administrative functions.
Furthermore, we cannot predict whether insurance will continue to be available to us at a reasonable cost or at all. An increased societal and governmental focus on ESG and climate change issues may adversely impact our business, impact our access to investors and financing, and decrease demand for our product .
Furthermore, we cannot predict whether insurance will continue to be available to us at a reasonable cost or at all. An increased societal and governmental focus on ESG matters, including climate change issues, may adversely impact our business, hinder access to investors and financing, and decrease demand for our product.
We were allowed to re-establish a USD denominated account and made whole for the original USD amount. Pursuant to Amendment No. 5 of the Etame PSC, we are working with Directorate of Hydrocarbons in Gabon on establishing a payment schedule to resume funding of the abandonment fund in compliance with the Etame PSC.
We were allowed to re-establish a USD denominated account and made whole for the 40 Table of Contents original USD amount. Pursuant to Amendment No. 5 of the Etame PSC, we are working with Directorate of Hydrocarbons in Gabon on establishing a payment schedule to resume funding of the abandonment fund in compliance with the Etame PSC.
If any violent action causes us to 38 Table of Contents become involved in a dispute, we may be subject to the exclusive jurisdiction of courts outside the U.S. or may not be successful in subjecting non-U.S. persons to the jurisdiction of courts in the U.S. or international arbitration, which could adversely affect the outcome of such dispute.
If any violent action causes us to become involved in a dispute, we may be subject to the exclusive jurisdiction of courts outside the U.S. or may not be successful in subjecting non-U.S. persons to the jurisdiction of courts in the U.S. or international arbitration, which could adversely affect the outcome of such dispute.
There is also a risk that these parties may at any time have economic, business, or legal interests or goals that are 29 Table of Contents inconsistent with the Company’s, and therefore, decisions may be made that the Company does not believe are in its best interest.
There is also a risk that these parties may at any time have economic, business, or legal interests or goals that are inconsistent with the Company’s, and therefore, decisions may be made that the Company does not believe are in its best interest.
At December 31, 2024, approximately 54% of our total estimated proved reserves were undeveloped reserves. Recovery of undeveloped reserves requires significant capital expenditures and successful drilling. Our reserves data assumes that we can and will make these expenditures and conduct these operations successfully. These assumptions, however, may not prove correct.
At December 31, 2025, approximately 59% of our total estimated proved reserves were undeveloped reserves. Recovery of undeveloped reserves requires significant capital expenditures and successful drilling. Our reserves data assumes that we can and will make these expenditures and conduct these operations successfully. These assumptions, however, may not prove correct.
In the future we may depend on the 2025 Facility for a portion of our capital needs. The 2025 Facility has aggregate commitments of $190 million and an initial borrowing base of $182 million.
In the future we may depend on the 2025 RBL Facility for a portion of our capital needs. The 2025 RBL Facility had initial aggregate commitments of $190 million and an initial borrowing base of $182 million.
Subject to certain conditions, we may request, at any time prior to the date falling 30 months after the date of the 2025 Facility Agreement to increase the total commitments available under the 2025 Facility by an aggregate principal amount not to exceed $110 million.
Subject to certain conditions, we may request, at any time prior to the date falling 30 months after the date of the 2025 Facility Agreement to increase the total commitments available under the 2025 RBL Facility to an aggregate principal amount not to exceed $300 million.
In December 2021 and during 2022, the Bank of Central African States (“BEAC”), which is the central bank for the Central African Economic and Monetary Community (“CEMAC”), passed new regulations and instructions for the CEMAC FX regulations, which were introduced in 2018, that only apply to the extractive industry.
In December 2021 and during 2022, the Bank of Central African States (“BEAC”), which is the central bank for the CEMAC, passed new regulations and instructions for the CEMAC FX regulations, which were introduced in 2018, that only apply to the extractive industry.
The 46 Table of Contents compliance mechanisms and monitoring programs that we have adopted and implemented may not adequately prevent or detect possible violations of such applicable laws.
The compliance mechanisms and monitoring programs that we have adopted and implemented may not adequately prevent or detect possible violations of such applicable laws.
If we raise additional capital through debt financing, the financing may involve covenants that restrict our business activities or our ability to 28 Table of Contents make future acquisitions.
If we raise additional capital through debt financing, the financing may involve covenants that restrict our business activities or our ability to make future acquisitions.
For instance, the ongoing conflicts in the Middle East and between Russia and Ukraine have and may continue to cause geopolitical instability, and adversely impact the global economy, supply chains and specific markets and industries.
For instance, the ongoing conflicts in the Middle East, including the United States-Israel-Iran war and between Russia and Ukraine have and may continue to cause geopolitical instability, and adversely impact the global economy, supply chains and specific markets and industries.
The laws and regulations of countries where we have activities control our current business. These laws and regulations may require that we obtain permits for our development activities, limit or prohibit drilling activities in certain protected or sensitive areas or restrict the substances that can be released in connection with our operations.
These laws and regulations may require that we obtain permits for our development activities, limit or prohibit drilling activities in certain protected or sensitive areas or restrict the substances that can be released in connection with our operations.
In addition, various factors including the effect of federal, state and foreign regulation of production and transportation, general economic conditions, changes in supply due to drilling by other producers and changes in demand may adversely affect our ability to market our crude oil, natural gas and NGLs production. 42 Table of Contents In a period of depressed or declining crude oil, natural gas and NGLs prices, we are subject to numerous risks, including but not limited to the following: • our revenues, cash flows and profitability may decline substantially, which could also indirectly impact expected production by reducing the amount of funds available to engage in exploration, drilling and production; • third-party confidence in our commercial or financial ability to explore and produce crude oil, natural gas and NGLs could erode, which could impact our ability to execute on our business strategy; • our suppliers, hedge counterparties (if any), vendors and service providers could renegotiate the terms of our arrangements, terminate their relationship with us or require financial assurances from us; • we may take measures to preserve liquidity, such us our decision to cease or defer discretionary capital expenditures during such periods of depressed or declining oil prices; and • it may become more difficult to retain, attract or replace key employees.
In a period of depressed or declining crude oil, natural gas and NGLs prices, we are subject to numerous risks, including but not limited to the following: • our revenues, cash flows and profitability may decline substantially, which could also indirectly impact expected production by reducing the amount of funds available to engage in exploration, drilling and production; 41 Table of Contents • third-party confidence in our commercial or financial ability to explore and produce crude oil, natural gas and NGLs could erode, which could impact our ability to execute on our business strategy; • our suppliers, hedge counterparties (if any), vendors and service providers could renegotiate the terms of our arrangements, terminate their relationship with us or require financial assurances from us; • we may take measures to preserve liquidity, such us our decision to cease or defer discretionary capital expenditures during such periods of depressed or declining oil prices; and • it may become more difficult to retain, attract or replace key employees.
With respect to Block P, the EG MMH approved our appointment as technical operator in August 2020 and, since we were appointed, we rely on the timely payment of cash calls by our joint venture owners to pay for 46.3% of the Equatorial Guinea budget, except during any development phases where we have agreed or will agree to carry their interests.
With respect to Block P, as the appointed technical operator, we rely on the timely payment of cash calls by our joint venture owners to pay for 46.3% of the Equatorial Guinea budget, except during any development phases where we have agreed or will agree to carry their interests.
We actively seek to expand our business through complementary or strategic acquisitions and may issue additional shares of common stock in connection with those acquisitions. We also issue shares of our common stock to our executive officers, employees and independent directors as part of their compensation.
We actively seek to expand our business through complementary or strategic acquisitions and may issue additional shares of common stock in connection with those acquisitions. We also issue shares of our common stock to our executive officers, employees and independent directors as part of their compensation. This may have the effect of diluting the interests of existing stockholders.
Anti-development activists are working to, among other things, delay or cancel certain operations such as offshore drilling and development. 45 Table of Contents Such public opposition could expose us to higher costs, delays or even project cancellations, due to increased pressure on governments and regulators by special interest groups, including Indigenous groups, landowners, environmental interest groups (including those opposed to oil and natural gas production operations) and other non-governmental organizations, blockades, legal or regulatory actions or challenges, increased regulatory oversight, reduced support from the federal, provincial or municipal governments, reputational damage, delays in, challenges to or the revocation of regulatory approvals, permits and/or licenses, and direct legal challenges, including the possibility of climate-related litigation.
Such public opposition could expose us to higher costs, delays or even project cancellations, due to increased pressure on governments and regulators by special interest groups, including Indigenous groups, landowners, environmental interest groups (including those opposed to oil and natural gas production operations) and other non-governmental organizations, blockades, legal or regulatory actions or challenges, increased regulatory oversight, reduced support from the federal, provincial or municipal governments, reputational damage, delays in, challenges to or the revocation of regulatory approvals, permits and/or licenses, and direct legal challenges, including the possibility of climate-related litigation.
To the extent that any of such third parties go bankrupt, become insolvent, or make a proposal or institute any proceedings relating to bankruptcy or insolvency, it could result in our inability to collect all or a portion of any money owing from such parties. Any of these factors could materially adversely affect our financial and operational results.
To the extent that any of such third parties go bankrupt, become insolvent, or make a proposal or institute any proceedings relating to bankruptcy or insolvency, it could result in our inability to collect all or a portion of any money owing from such parties.
Some collections of our accounts receivable from the Egyptian Government are received in Egyptian pounds, and while we are generally able to spend the Egyptian pounds received on accounts payable denominated in Egyptian pounds, there remains foreign currency exchange risk exposure on Egyptian pound cash balances.
Some collections of our accounts receivable from the Egyptian Government are received in Egyptian pounds, and while we are generally able to spend the Egyptian pounds received on accounts payable denominated in Egyptian pounds, there remains foreign currency exchange risk exposure on Egyptian pound cash balances. We currently do not utilize derivative instruments to manage these foreign currency risks.
We do not utilize derivative instruments to manage these foreign currency risks. As a result, our consolidated earnings and cash flows may be impacted by movements in the exchange rates. We operate in international jurisdictions, and we could be adversely affected by violations of the U.S. Foreign Corrupt Practices Act and similar worldwide anti-corruption laws.
As a result, our consolidated earnings and cash flows may be impacted by movements in the exchange rates. We operate in international jurisdictions, and we could be adversely affected by violations of the U.S. Foreign Corrupt Practices Act and similar worldwide anti-corruption laws. We are subject to the provisions of the U.S.
As a result, no assurance can be given that we will be able to continue to pay dividends to our stockholders or that the level of any future dividends will achieve a market yield or increase or even be maintained over time, any of which could materially and adversely affect the market price of our common stock.
As a result, no assurance can be given that we will be able to continue to pay dividends to our stockholders or that the level of any future dividends will achieve a market yield or increase or even be maintained over time, any of which could materially and adversely affect the market price of our common stock. 47 Table of Contents Dual-listing on the NYSE and the LSE may lead to an inefficient market in our common stock.
We may also be prevented from taking advantage of business opportunities that arise if we fail to meet certain ratios or because of the limitations imposed on us by the covenants under the 2025 Facility.
Even if new financing was made available to us, it may not be on terms acceptable to us. We may also be prevented from taking advantage of business opportunities that arise if we fail to meet certain ratios or because of the limitations imposed on us by the covenants under the 2025 Facility.
Private ownership of crude oil reserves under crude oil leases in the U.S. differs distinctly from our rights in foreign reserves where the state generally retains ownership of the minerals and, in many cases participates in, the exploration and production of hydrocarbon reserves. Accordingly, operations outside the U.S. may be materially affected by host governments.
Private ownership of crude oil reserves under crude oil leases in the U.S. differs distinctly from our rights in foreign reserves where the state generally retains ownership of the minerals and, in many cases participates in, the exploration and production of hydrocarbon reserves.
Except to the extent that we conduct successful exploration or development activities or acquire properties containing proved reserves, our estimated net proved reserves will generally decline as reserves are produced.
We may not be successful in exploring for, developing or acquiring additional reserves. Except to the extent that we conduct successful exploration or development activities or acquire properties containing proved reserves, our estimated net proved reserves will generally decline as reserves are produced.
For example, they could: • impair our ability to obtain additional financing in the future for capital expenditures, potential acquisitions, general business activities or other purposes; • increase our vulnerability to general adverse economic and industry conditions; • require us to dedicate a substantial portion of future cash flows to payments of our indebtedness and other financial obligations, thereby reducing the availability of our cash flows to fund working capital, capital expenditures and other general corporate requirements; • limit our flexibility in planning for, or reacting to, changes in our business and industry; and • place us at a competitive disadvantage to those who have proportionately less debt. 47 Table of Contents In addition, our ability to comply with the 2025 Facility Agreement's covenants could be affected by events beyond our control and we cannot assure you that we will satisfy those requirements.
For example, they could: • impair our ability to obtain additional financing in the future for capital expenditures, potential acquisitions, general business activities or other purposes; • increase our vulnerability to general adverse economic and industry conditions; • require us to dedicate a substantial portion of future cash flows to payments of our indebtedness and other financial obligations, thereby reducing the availability of our cash flows to fund working capital, capital expenditures and other general corporate requirements; • limit our flexibility in planning for, or reacting to, changes in our business and industry; and • place us at a competitive disadvantage to those who have proportionately less debt.
Our ability to make the necessary capital investment to maintain or expand our asset base of crude oil, natural gas and NGLs reserves would be limited to the extent cash flow from operations is reduced and external sources of capital become limited or unavailable. We may not be successful in exploring for, developing or acquiring additional reserves.
Our ability to make the necessary capital investment to maintain or expand our asset base of crude oil, natural gas and NGLs reserves would be limited to the 29 Table of Contents extent cash flow from operations is reduced and external sources of capital become limited or unavailable.
These properties include exploration prospects as well as properties with proved reserves. Our competitors may also use superior technology that we may be unable to afford or that would require costly investment in order to compete. There is also competition for contracting for drilling equipment and the hiring of experienced personnel.
Our competitors may also use superior technology that we may be unable to afford or that would require costly investment in 42 Table of Contents order to compete. There is also competition for contracting for drilling equipment and the hiring of experienced personnel.
Private litigation or government proceedings brought against us could also result in significant delays in our operations. Risks Relating to the 2025 Facility Agreement A significant level of indebtedness incurred under the 2025 Facility may limit our ability to borrow additional funds or capitalize on acquisition or other business opportunities in the future.
Risks Relating to the 2025 Facility Agreement A significant level of indebtedness incurred under the 2025 Facility may limit our ability to borrow additional funds or capitalize on acquisition or other business opportunities in the future.
The total amount of loans which may be drawn under the 2025 Facility is limited to the lower of the amount of the aggregate commitments and the Borrowing Base Amount at the relevant time.
The increase in commitments was undertaken with the existing accordion feature included in the 2025 RBL Facility. The total amount of loans which may be drawn under the 2025 Facility is limited to the lower of the amount of the aggregate commitments and the Borrowing Base Amount at the relevant time.
As a result, a significant amount of time may elapse between an offshore discovery and the marketing of the associated crude oil, natural gas and NGLs, increasing both the financial and operational risks involved with these operations.
Exploration and development operations offshore Africa often lack the physical and oilfield service infrastructure present in other regions. As a result, a significant amount of time may elapse between an offshore discovery and the marketing of the associated crude oil, natural gas and NGLs, increasing both the financial and operational risks involved with these operations.
Inspections may not always be performed on every well, and potential problems, such as ground 30 Table of Contents water contamination and other environmental conditions and deficiencies in the mechanical integrity of equipment are not necessarily observable even when an inspection is undertaken. Any unidentified problems could result in material liabilities and costs that negatively impact our financial condition.
Inspections may not always be performed on every well, and potential problems, such as ground water contamination and other environmental conditions and deficiencies in the mechanical integrity of equipment are not necessarily observable even when an inspection is undertaken.
Estimates of economically recoverable crude oil, natural gas and NGLs reserves and the future net cash flows from them are based upon a number of variable factors and assumptions, such as historical production from the properties, production rates, ultimate reserves recovery, timing and amount of capital expenditures, marketability of crude oil, natural gas and NGLs, royalty rates, the assumed effects of regulation by governmental agencies, and future operating costs, all of which may vary materially from actual results.
The estimates included in this document are based on various assumptions required by the SEC, including non-escalated prices and costs and capital expenditures subsequent to December 31, 2025, and, therefore, are inherently imprecise indications of future net revenues. 32 Table of Contents Estimates of economically recoverable crude oil, natural gas and NGLs reserves and the future net cash flows from them are based upon a number of variable factors and assumptions, such as historical production from the properties, production rates, ultimate reserves recovery, timing and amount of capital expenditures, marketability of crude oil, natural gas and NGLs, royalty rates, the assumed effects of regulation by governmental agencies, and future operating costs, all of which may vary materially from actual results.
We cannot predict how these policy changes and executive actions will be implemented and interpreted, or the ultimate effect they will have on our business, financial condition and results of operations.
We cannot predict how these policy changes, executive actions, and geopolitical events will be implemented or interpreted or the impact of a possible U.S. federal government shutdown or prolonged budget negotiation, or the ultimate effect they will have on our business, financial condition, and results of operations.
Additionally, certain cyber incidents, such as surveillance, may remain undetected for an extended period. 35 Table of Contents Current and future geopolitical events outside of our control could adversely impact our business, results of operations, cash flows, financial condition and liquidity.
Additionally, certain cyber incidents, such as surveillance, may remain undetected for an extended period. Current and future geopolitical events outside of our control could adversely impact our business, results of operations, cash flows, financial condition and liquidity. We face risks related to geopolitical events, international hostility, epidemics, outbreaks and other macroeconomic events that are outside of our control.
Companies in the crude oil, natural gas and NGLs industry are often the target of activist efforts from both individuals and non-governmental organizations regarding safety, human rights, climate change, environmental matters, sustainability and business practices.
Companies in the crude oil, natural gas and NGLs industry are often the target of activist efforts from both individuals and non-governmental organizations regarding safety, human rights, climate change, environmental matters, sustainability and business practices. Anti-development activists are working to, among other things, delay or cancel certain operations such as offshore drilling and development.
We have limited control over the assets we do not operate. We have limited control over matters relating to development and exploitation activities, including the timing of and capital expenditures for such activities and compliance with environmental, safety, and other standards, of assets where we are not the operator.
We have limited control over matters relating to development and exploitation activities, including the timing of and capital expenditures for such activities and compliance with environmental, safety, and other standards, of assets where we are not the operator. The operator and our fellow non-operating owners of these properties may act in ways that are not in our best interest.
The price of our common stock may fluctuate and may at any time be different on the NYSE and the LSE. Dual-listing of our common stock will result in differences in liquidity, settlement and clearing systems, trading currencies, and prices and transaction costs between the exchanges where our common stock will be quoted.
Dual-listing of our common stock will result in differences in liquidity, settlement and clearing systems, trading currencies, and prices and transaction costs between the exchanges where our common stock will be quoted. These and other factors may hinder the transferability of our common stock between the two exchanges.
However, any long-term material adverse effect on the oil and gas industry may adversely affect our financial condition, results of operations and cash flows.
Any long-term material adverse effect on the global oil and gas industry, whether driven by climate policies, social pressures, or other ESG factors, may adversely affect our financial condition, results of operations, and cash flows.
From time to time, emerging market countries such as those in which we operate adopt measures to restrict the availability of the local currency or the repatriation of capital across borders.
Our results of operations, financial condition and cash flows could be adversely affected by changes in currency regulations. From time to time, emerging market countries such as those in which we operate adopt measures to restrict the availability of the local currency or the repatriation of capital across borders.
Recent macroeconomic conditions have caused turmoil in the banking sector in the United States and elsewhere. If any of the banks in which we keep our deposits is affected by such turmoil, we could be materially and adversely affected. Our business could be materially and adversely affected by security threats, including cybersecurity threats, and other disruptions.
In 2023, macroeconomic conditions caused turmoil in the banking sector in the United States and elsewhere. We were not impacted by such turmoil. However, if similar conditions arise in the banking sector again and if any of the banks in which we keep our deposits is affected by such turmoil, we could be materially and adversely affected.
Additionally, there can be no 33 Table of Contents assurance that the FPSO will return to service in the expected timeframe or that the costs of returning it to service will not be more than expected, and in either such case our results would be adversely affected.
Although, the refurbishment work was completed in February 2026 and the Baobab FPSO has commenced its mobilization back to Cote d’Ivoire, there can be no assurance that the FPSO will return to service in the expected timeframe or that the costs of returning it to service will not be more than expected, and in either such case our results would be adversely affected.
Failure to meet such obligations could result in concessions, leases and licenses being suspended, revoked or terminated which could have a material adverse effect on our business. We may be exposed to the risk of earthquakes in Alberta, Canada.
Additionally, we may be unable to drill all of our prospects or satisfy our minimum work commitments prior to relinquishment and may be unable to meet our obligations under the title documents. Failure to meet such obligations could result in concessions, leases and licenses being suspended, revoked or terminated which could have a material adverse effect on our business.
Dual-listing on the NYSE and the LSE may lead to an inefficient market in our common stock. Our common stock is quoted on the NYSE and the LSE. Consequently, the trading in and liquidity of our common stock are split between these two exchanges.
Our common stock is quoted on the NYSE and the LSE. Consequently, the trading in and liquidity of our common stock are split between these two exchanges. The price of our common stock may fluctuate and may at any time be different on the NYSE and the LSE.
We and our Block P joint venture owners are evaluating the timing and budgeting for development and exploration activities in the block. There can be no certainty that any such transaction will be completed or that we will be able to commence drilling operations in Block P.
There can be no certainty that any such transaction will be completed or that we will be able to commence drilling operations in Block P.
Our ability to collect payments from the sale of crude oil, natural gas and NGLs from our customers depends on the payment ability of our customer base, which may include a small number of significant customers. If our significant customers fail to pay for any reason, we could experience a material loss.
Any of these factors could materially adversely affect our financial and operational results. 34 Table of Contents Our ability to collect payments from the sale of crude oil, natural gas and NGLs from our customers depends on the payment ability of our customer base, which may include a small number of significant customers.
Litigation can be very costly, and the costs associated with defending litigation could also have a material adverse effect on our results of operation, net cash flows and financial condition. Adverse litigation decisions or rulings may also damage our business reputation. Often, our operations are conducted through joint ventures over which we may have limited influence and control.
Litigation can be very costly, and the costs associated with defending litigation could also have a material adverse effect on our results of operation, net cash flows and financial condition.
If such increased levels of volatility and market turmoil continue, our operations could be adversely impacted, and the trading price of our common stock may be adversely affected. 48 Table of Contents We currently intend to pay dividends on our common stock; however, no assurance can be given that we will be able to pay dividends to our stockholders in the future at indicated levels or at all.
We currently intend to pay dividends on our common stock; however, no assurance can be given that we will be able to pay dividends to our stockholders in the future at indicated levels or at all.
As a result, the Minister of Hydrocarbons may request us to limit our production for a period of time in compliance with the OPEC+ mandate. 36 Table of Contents The ability of the OPEC+ to agree on and to maintain crude oil price and production controls has also had, and is likely to continue to have, a significant impact on the market prices of crude oil.
The ability of the OPEC+ to agree on and to maintain crude oil price and production controls has also had, and is likely to continue to have, a significant impact on the market prices of crude oil.
On February 14, 2023, we announced that our Board of Directors adopted a quarterly cash dividend policy of an expected $0.0625 per share of common stock commencing in the first quarter of 2023.
Our Board of Directors adopted a quarterly cash dividend policy of an expected $0.0625 per share of common stock commencing in the first quarter of 2023. To the extent we have adequate cash on hand and cash flows from operations, we will consider continuing to pay dividends on our common stock in the future.
Some of these risks may be higher in the developing countries in which we conduct our activities, namely, Gabon, Cote d'Ivoire, Equatorial Guinea and Egypt. For example, in September 2023, Gabon experienced a largely non-violent, military coup d’état and the country’s leadership changed hands.
Some of these risks may be higher in the developing countries in which we conduct our activities, namely, Gabon, Egypt, Cote d'Ivoire, Nigeria and Equatorial Guinea.
Any arbitrage activity could create unexpected volatility in both common stock prices on either exchange and in the volumes of our common stock available for trading on either market.
Investors could seek to sell or buy our common stock to take advantage of any price differences between the two markets through a practice referred to as arbitrage. Any arbitrage activity could create unexpected volatility in both common stock prices on either exchange and in the volumes of our common stock available for trading on either market.
The choice of forum provisions in our Third Amended and Restated Bylaws (the “ Bylaws ” ) could limit our stockholders ’ ability to obtain a favorable judicial forum for disputes.
Additionally, to the extent that pre-emptive rights are granted, stockholders in certain jurisdictions may experience difficulties in exercising or the inability to exercise their pre-emptive rights. The choice of forum provisions in our Third Amended and Restated Bylaws (the “ Bylaws ” ) could limit our stockholders ’ ability to obtain a favorable judicial forum for disputes.
Numerous proposals have been made and are likely to be forthcoming on the international, national, regional, state and local levels to reduce the emissions of GHG emissions. These efforts have included or may include cap-and-trade programs, carbon taxes, GHG emissions reporting obligations and other regulatory programs that limit or require control of GHG emissions from certain sources.
These efforts have included or may include cap-and-trade programs, carbon taxes, GHG emissions reporting 44 Table of Contents obligations and other regulatory programs that limit or require control of GHG emissions from certain sources.
Our competitors include major integrated oil companies and substantial independent energy companies, many of which possess greater financial, technological, personnel and other resources than we do. 43 Table of Contents We may be outbid by our competitors in our attempts to acquire exploration and production rights in crude oil, natural gas and NGLs properties.
Competitive industry conditions may negatively affect our ability to conduct operations. The crude oil, natural gas, and NGLs industry is intensely competitive. Our competitors include major integrated oil companies and substantial independent energy companies, many of which possess greater financial, technological, personnel and other resources than we do.
Our results of operations, financial condition and cash flows could be adversely affected by changes to interest rates. As of December 31, 2024, the amount available to be drawn under our Facility Agreement was $31.3 million, none of which had been drawn.
Our results of operations, financial condition and cash flows could be adversely affected by changes to interest rates. As of December 31, 2025, we had $190.0 million of aggregate facility commitments, $130.0 million of available borrowing capacity and $60.0 million of outstanding borrowings under the 2025 RBL Facility.
We are subject to the provisions of the U.S. Foreign Corrupt Practices Act, the UK Bribery Act, the Corruption of Foreign Public Officials Act (Canada) and other similar laws. The foregoing laws prohibit companies and their intermediaries from making improper payments to officials for the purpose of obtaining or retaining business.
Foreign Corrupt Practices Act, the UK Bribery Act and other similar laws. The foregoing laws prohibit companies and their intermediaries from making improper payments to officials for the purpose of obtaining or retaining business. In addition, such laws require the maintenance of records relating to transactions and an adequate system of internal controls over accounting.
As a member of OPEC+, Gabon may take measures to comply with such OPEC+ production quota agreements.
As a member of OPEC+, Gabon may take measures to comply with such OPEC+ production quota agreements. As a result, the Minister of Hydrocarbons may request us to limit our production for a period of time in compliance with the OPEC+ mandate.
Commodity derivative transactions that we enter into may fail to protect us from declines in commodity prices and could result in financial losses or reduce our income.
In addition, there can be no assurance that wells that are currently shut in will be returned to production on a timely basis, if at all, or at historical or anticipated production levels. Commodity derivative transactions that we enter into may fail to protect us from declines in commodity prices and could result in financial losses or reduce our income.
We could lose our interest in Block P in Equatorial Guinea if we do not meet our commitments under the production sharing contract. Our Block P production sharing contract provides for a development and production period of 25 years from the first oil production.
Our Block P production sharing contract provides for a development and production period of 25 years from the first oil production. We and our Block P joint venture owners are evaluating the timing and budgeting for development and exploration activities in the block.
As an offshore asset, we, along with the operator and contractors of the Block CI-40 PSC, depend on the FPSO to store the crude oil produced prior to sale to customers. The FPSO contract expires in December 2025. The FPSO will be in transit to dry dock in early 2025 for planned maintenance and upgrades.
Our results will be adversely affected until the FPSO is returned to service which may be a time later than we expect. As an offshore asset, we, along with the operator and contractors of the Block CI-40 PSC, depend on the FPSO to store the crude oil produced prior to sale to customers.
If our operations are disrupted and/or the economic integrity of our projects are threatened for unexpected reasons, our business may be harmed. Prolonged problems may threaten the commercial viability of our operations. Our operations may be adversely affected by political and economic circumstances in the countries in which we operate .
Any of the factors detailed above or similar factors could have a material adverse effect on our business, results of operations or financial condition. If our operations are disrupted and/or the economic integrity of our projects are threatened for unexpected reasons, our business may be harmed. Prolonged problems may threaten the commercial viability of our operations.
An increased expectation that companies address environmental (including climate change), social and governance (“ESG”) matters may have a myriad of impacts on our business. Some investors and lenders are factoring these issues into investment and financing decisions. They may rely upon companies that assign ratings to a company’s ESG performance.
Heightened expectations for companies to address ESG matters, including climate change, social license to operate, human rights, and governance, have a myriad of potential impacts on our business. Investors, lenders, and other stakeholders are increasingly factoring these issues into investment, financing, and business decisions, often relying on ESG ratings from third-party agencies.
Our dependence on the operator and such parties could have a material adverse effect on our business, results of operations or financial condition. Our offshore operations involve special risks that could adversely affect our results of operations. Offshore operations are subject to a variety of operating risks specific to the marine environment.
Additionally, we are dependent on the operator and our fellow non-operating owners of such projects to fund their contractual share of the capital expenditures of such projects. Our dependence on the operator and such parties could have a material adverse effect on our business, results of operations or financial condition.
If the joint venture owners of Block P fail to meet the commitments under the production sharing contract amendment, our capitalized costs of $10 million associated with Block P interest would be impaired. There are no assurances that we will be able to extend the Block CI-40 PSC. The Block CI-40 PSC expires in April 2028.
If the joint venture owners of Block P fail to meet the commitments under 33 Table of Contents the production sharing contract amendment, our capitalized costs of $10 million associated with Block P interest would be impaired. The FPSO in Côte d’Ivoire ceased hydrocarbon production on January 31, 2025 for scheduled maintenance.

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Item 2. Properties

Properties — owned and leased real estate

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Biggest changeItem 2. Properties The location and general character of our principal crude oil, natural gas and NGLs assets, production facilities, and other important physical properties have been described by segment under Item 1. “ Business .” Information about crude oil, 51 Table of Contents natural gas and NGLs reserves, including the basis for their estimation, is discussed in Item 1.
Biggest changeItem 2. Properties The location and general character of our principal crude oil, natural gas and NGLs assets, production facilities, and other important physical properties have been described by segment under Item 1. “ Business .” Information about crude oil, natural gas and NGLs reserves, including the basis for their estimation, is discussed in Item 1.
While we may in the future require additional office space as our business expands, we believe that our existing facilities are adequate to meet our needs for the immediate future and that additional facilities will be available on commercially reasonable terms as needed. For information regarding the Company’s obligations under its office leases, see Part IV, Item 15., Note 14.
While we may in the future require additional office space as our business expands, we believe that our existing facilities are adequate to meet our needs for the immediate future and that additional facilities will be available on commercially reasonable terms as needed. For information regarding the Company’s obligations under its office leases, see Part IV, Item 15., Note 13.
“ Business .” Our principal executive office is located at 2500 CityWest Boulevard, Houston, Texas 77042. As of December 31, 2024, we maintained offices in Houston, Texas; London, United Kingdom; Port-Gentil, Gabon; Calgary, Alberta; Cairo, Egypt; Abidjan, Cote d’Ivoire; and Malabo, Equatorial Guinea. All of our office space is leased.
“ Business .” Our principal executive office is located at 2500 CityWest Boulevard, Houston, Texas 77042. As of December 31, 2025, we maintained offices in Houston, Texas; London, United Kingdom; Port-Gentil, Gabon; Calgary, Alberta; Cairo, Egypt; Abidjan, Cote d’Ivoire; and Malabo, Equatorial Guinea. All of our office space is leased.
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Leases to the Consolidated Financial Statements. 50 Table of Contents

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

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Biggest changeItem 3. Legal Proceedings We are subject to litigation claims and governmental and regulatory proceedings arising in the ordinary course of business.
Biggest changeItem 3. Legal Proceedings We are subject to litigation claims and tax, governmental and regulatory proceedings arising in the ordinary course of business.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeThe following table is a schedule of our dividends paid during 2024: Dividend Payment Date Amount per common share Record Date March 28, 2024 $ 0.0625 March 8, 2024 June 21, 2024 $ 0.0625 May 17, 2024 September 20, 2024 $ 0.0625 August 23, 2024 December 20, 2024 $ 0.0625 November 22, 2024 Aggregate per share amount paid in 2024 $ 0.2500 In connection with the 2025 RBL Facility, we are required to provide a group liquidity forecast prior to any distribution, share buyback, or stock repurchase (each, a “Distribution”).
Biggest changeThe following table is a schedule of our dividends paid during 2025: Dividend Payment Date Amount per common share Record Date March 28, 2025 $0.0625 February 28, 2025 June 27, 2025 $0.0625 May 23, 2025 September 19, 2025 $0.0625 August 22, 2025 December 24, 2025 $0.0625 November 21, 2025 Aggregate per share amount paid in 2025 $0.2500 In connection with the 2025 RBL Facility, we are required to provide a group liquidity forecast prior to any distribution, share buyback, or stock repurchase (each, a “Distribution”).
As of February 28, 2025, based upon information received from our transfer agent and brokers and nominees, there were approximately 93 holders of record of VAALCO common stock. This number does not include beneficial or other owners for whom common stock may be held in “street” names.
As of February 28, 2026, based upon information received from our transfer agent and brokers and nominees, there were approximately 101 holders of record of VAALCO common stock. This number does not include beneficial or other owners for whom common stock may be held in “street” names.
For the year ended December 31, 2024, no specific approval or waivers were required to make Distributions. 52 Table of Contents To the extent we have adequate cash on hand and cash flows from operations, we will consider paying additional cash dividends on a quarterly basis; however, any future dividend payments, if any, will be at the discretion of the Board of Directors after taking into account various factors, including current financial condition, the tax impact of repatriating cash, operating results and current and anticipated cash needs.
To the extent we have adequate cash on hand and cash flows from operations, we will consider paying additional cash dividends on a quarterly basis; however, any future dividend payments, if any, will be at the discretion of the Board of Directors after taking into account various factors, including current financial condition, the tax impact of repatriating cash, operating results and current and anticipated cash needs.
Dividends On February 14, 2023, we announced that our board of directors adopted a quarterly cash dividend policy of an expected $0.0625 per common share per quarter commencing in the first quarter of 2023 and continued throughout the years 2023 and 2024.
Dividends Our Board of Directors adopted a quarterly cash dividend policy of an expected $0.0625 per common share per quarter commencing in the first quarter of 2023.
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For the year ended December 31, 2025, no specific approval or waivers were required to make Distributions.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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Biggest changeBusiness – Reserve Information .” Oil Proved reserves: Gabon (MBbls) Egypt (MBbls) Canada (MBbls) Cote d'Ivoire (MBbls) Total (MBbls) Balance at January 1, 2022 11,218 — — — 11,218 Production (2,971) (547) (72) — (3,590) Purchase of reserves — 9,124 3,679 — 12,803 Extensions and discoveries — — — — — Revisions of previous estimates 1,972 — — — 1,972 Balance at December 31, 2022 10,219 8,577 3,607 — 22,403 Production (3,197) (2,771) (334) — (6,302) Purchase of reserves — — — — — Extensions and discoveries — 93 810 — 903 Revisions of previous estimates 2,042 4,693 (652) — 6,083 Balance at December 31, 2023 9,064 10,592 3,431 — 23,087 Production (2,783) (2,585) (348) (1,054) (6,770) Purchase of reserves — — — 15,288 15,288 Extensions and discoveries — — (93) — (93) Revisions of previous estimates 4,782 1,441 (225) 1,018 7,016 Balance at December 31, 2024 11,063 9,448 2,765 15,252 38,528 Oil Gabon (MBbls) Egypt (MBbls) Canada (MBbls) Cote d'Ivoire (MBbls) Total (MBbls) Year-end proved developed reserves: 2024 6,830 8,962 1,480 118 17,390 2023 8,053 10,141 1,309 — 19,503 2022 10,219 8,001 1,722 — 19,942 2021 7,227 — — — 7,227 Year-end proved undeveloped reserves: 2024 4,233 486 1,286 15,134 21,139 2023 1,011 451 2,122 — 3,584 2022 — 576 1,885 — 2,461 2021 3,991 — — — 3,991 F-49 Natural Gas Proved reserves: Gabon (MMcf) Egypt (MMcf) Canada (MMcf) Cote d'Ivoire (MMcf) Total (MMcf) Balance at December 31, 2022 — — 16,539 — 16,539 Production — — (1,528) — (1,528) Purchase of reserves — — — — — Extensions and discoveries — — 3,219 — 3,219 Revisions of previous estimates — — (1,298) — (1,298) Balance at December 31, 2023 — — 16,932 — 16,932 Production — — (1,532) (26) (1,558) Purchase of reserves — — — 6,830 6,830 Extensions and discoveries — — 234 — 234 Revisions of previous estimates — — 446 (253) 193 Balance at December 31, 2024 — — 16,080 6,551 22,631 Natural Gas Gabon (MMcf) Egypt (MMcf) Canada (MMcf) Cote d'Ivoire (MMcf) Total (MMcf) Year-end proved developed reserves: 2024 — — 10,490 47 10,537 2023 — — 9,011 — 9,011 2022 — — 11,023 — 11,023 Year-end proved undeveloped reserves: 2024 — — 5,590 6,504 12,094 2023 — — 7,921 — 7,921 2022 — — 5,516 — 5,516 NGLs Proved reserves: Gabon (MBbls) Egypt (MBbls) Canada (MBbls) Cote d'Ivoire (MBbls) Total (MBbls) Balance at December 31, 2022 — — 2,797 — 2,797 Production — — (270) — (270) Purchase of reserves — — — — — Extensions and discoveries — — 505 — 505 Revisions of previous estimates — — (295) — (295) Balance at December 31, 2023 — — 2,737 — 2,737 Production — — (267) — (267) Purchase of reserves — — — — — Extensions and discoveries — — 40 — 40 Revisions of previous estimates — — 170 — 170 Balance at December 31, 2024 — — 2,680 — 2,680 F-50 NGLs Gabon (MBbls) Egypt (MBbls) Canada (MBbls) Cote d'Ivoire (MBbls) Total (MBbls) Year-end proved developed reserves: 2024 — — 1,744 — 1,744 2023 — — 1,449 — 1,449 2022 — — 1,855 — 1,855 Year-end proved undeveloped reserves: 2024 — — 936 — 936 2023 — — 1,289 — 1,289 2022 — — 942 — 942 Total Reserves (1) Proved reserves: Gabon (MBoe) Egypt (MBoe) Canada (MBoe) Cote d'Ivoire (MBoe) Total (MBoe) Balance at January 1, 2022 11,218 — — — 11,218 Production (2,971) (547) (211) — (3,729) Extensions and discoveries — — — — — Purchase of reserves — 9,124 9,372 — 18,496 Revisions of previous estimates 1,972 — — — 1,972 Balance at December 31, 2022 10,219 8577 9161 — 27,957 Production (3,197) (2,771) (859) — (6,827) Extensions and discoveries — — — — — Purchase of reserves — 93 1,852 — 1,945 Revisions of previous estimates 2,042 4,693 (1,163) — 5,572 Balance at December 31, 2023 9,064 10,592 8,991 — 28,647 Production (2,783) (2,585) (870) (1,058) (7,296) Purchase of reserves — — — 16,465 16,465 Extensions and discoveries — — (14) — (14) Revisions of previous estimates 4,782 1,441 19 974 7,216 Balance at December 31, 2024 11,063 9,448 8,126 16,381 45,018 (1) To convert Natural Gas to MBoe, MMcf is divided by 6 for Canada reserves, and MMcf is divided by 5.8 for Cote d'Ivoire reserves.
Biggest changeBusiness – Reserve Information .” Oil Proved reserves: Gabon (MBbls) Egypt (MBbls) Canada (MBbls) Cote d'Ivoire (MBbls) Total (MBbls) Balance at January 1, 2023 10,219 8,577 3,607 — 22,403 Production (3,197) (2,771) (334) — (6,302) Purchase of reserves — — — — — Extensions and discoveries — 93 810 — 903 Revisions of previous estimates 2,042 4,693 (652) — 6,083 Balance at December 31, 2023 9,064 10,592 3,431 — 23,087 Production (2,783) (2,585) (348) (1,054) (6,770) Purchase of reserves — — — 15,288 15,288 Extensions and discoveries — — 251 — 251 Revisions of previous estimates 4,782 1,441 (569) 1,018 6,672 Balance at December 31, 2024 11,063 9,448 2,765 15,252 38,528 Production (2,535) (2,730) (214) (111) (5,590) Purchase of reserves — — — — — Extensions and discoveries 1,195 34 — — 1,229 Revisions of previous estimates 278 1,862 (209) 1,870 3,801 Balance at December 31, 2025 10,001 8,614 2,342 17,011 37,968 Oil Gabon (MBbls) Egypt (MBbls) Canada (MBbls) Cote d'Ivoire (MBbls) Total (MBbls) Year-end proved developed reserves: 2025 5,287 8,177 1,179 — 14,643 2024 6,830 8,962 1,480 118 17,390 2023 8,053 10,141 1,309 — 19,503 2022 10,219 8,001 1,722 — 19,942 Year-end proved undeveloped reserves: 2025 4,714 437 1,163 17,011 23,325 2024 4,233 486 1,286 15,134 21,139 2023 1,011 451 2,122 — 3,584 2022 — 576 1,885 — 2,461 F-48 Natural Gas Proved reserves: Gabon (MMcf) Egypt (MMcf) Canada (MMcf) Cote d'Ivoire (MMcf) Total (MMcf) Balance at January 1, 2023 — — 16,539 — 16,539 Production — — (1,528) — (1,528) Purchase of reserves — — — — — Extensions and discoveries — — 3,219 — 3,219 Revisions of previous estimates — — (1,298) — (1,298) Balance at December 31, 2023 — — 16,932 — 16,932 Production — — (1,532) (26) (1,558) Purchase of reserves — — — 6,830 6,830 Extensions and discoveries — — 876 — 876 Revisions of previous estimates — — (196) (253) (449) Balance at December 31, 2024 — — 16,080 6,551 22,631 Production — — (1,449) — (1,449) Extensions and discoveries — — — — — Revisions of previous estimates — — (2,422) 403 (2,019) Balance at December 31, 2025 — — 12,209 6,954 19,163 Natural Gas Gabon (MMcf) Egypt (MMcf) Canada (MMcf) Cote d'Ivoire (MMcf) Total (MMcf) Year-end proved developed reserves: 2025 — — 9,059 — 9,059 2024 — — 10,490 47 10,537 2023 — — 9,011 — 9,011 2022 — — 11,023 — 11,023 Year-end proved undeveloped reserves: 2025 — — 3,150 6,954 10,104 2024 — — 5,590 6,504 12,094 2023 — — 7,921 — 7,921 2022 — — 5,516 — 5,516 F-49 NGLs Proved reserves: Gabon (MBbls) Egypt (MBbls) Canada (MBbls) Cote d'Ivoire (MBbls) Total (MBbls) Balance at January 1, 2023 — — 2,797 — 2,797 Production — — (270) — (270) Purchase of reserves — — — — — Extensions and discoveries — — 505 — 505 Revisions of previous estimates — — (295) — (295) Balance at December 31, 2023 — — 2,737 — 2,737 Production — — (267) — (267) Purchase of reserves — — — — — Extensions and discoveries — — 142 — 142 Revisions of previous estimates — — 68 — 68 Balance at December 31, 2024 — — 2,680 — 2,680 Production — — (212) — (212) Extensions and discoveries — — — — — Revisions of previous estimates — — (687) — (687) Balance at December 31, 2025 — — 1,781 — 1,781 NGLs Gabon (MBbls) Egypt (MBbls) Canada (MBbls) Cote d'Ivoire (MBbls) Total (MBbls) Year-end proved developed reserves: 2025 — — 1,329 — 1,329 2024 — — 1,744 — 1,744 2023 — — 1,449 — 1,449 2022 — — 1,855 — 1,855 Year-end proved undeveloped reserves: 2025 — — 452 — 452 2024 — — 936 — 936 2023 — — 1,289 — 1,289 2022 — — 942 — 942 F-50 Total Reserves (1) Proved reserves: Gabon (MBoe) Egypt (MBoe) Canada (MBoe) Cote d'Ivoire (MBoe) Total (MBoe) Balance at January 1, 2023 10,219 8,577 9,161 — 27,957 Production (3,197) (2,771) (859) — (6,827) Purchase of reserves — — — — — Extensions and discoveries — 93 1,852 — 1,945 Revisions of previous estimates 2,042 4,693 (1,163) — 5,572 Balance at December 31, 2023 9,064 10,592 8,991 — 28,647 Production (2,783) (2,585) (870) (1,058) (7,296) Purchase of reserves — — — 16,465 16,465 Extensions and discoveries — — 539 — 539 Revisions of previous estimates 4,782 1,441 (534) 974 6,663 Balance at December 31, 2024 11,063 9,448 8,126 16,381 45,018 Production (2,535) (2,730) (667) (111) (6,043) Purchase of reserves — — — — — Extensions and discoveries 1,195 34 — — 1,229 Revisions of previous estimates 278 1,862 (1,301) 1,940 2,779 Balance at December 31, 2025 10,001 8,614 6,158 18,210 42,983 (1) To convert Natural Gas to MBoe, MMcf is divided by 6 for Canada reserves, and MMcf is divided by 5.8 for Cote d'Ivoire reserves.
However, all future costs related to future property abandonment when the wells become uneconomic to produce are included in future development costs for purposes of calculating the standardized measure of discounted net cash flows. There were no discounted future net cash flows attributable to U.S. properties as of December 31, 2024, 2023 and 2022.
However, all future costs related to future property abandonment when the wells become uneconomic to produce are included in future development costs for purposes of calculating the standardized measure of discounted net cash flows. There were no discounted future net cash flows attributable to U.S. properties as of December 31, 2025, 2024 and 2023.
The PSCs provide for cost recovery per quarter up to a maximum percentage of total production. Timing differences often exist between the Company's recognition of costs and their recovery as the F-55 Company accounts for costs on an accrual basis, whereas cost recovery is determined on a cash basis.
The PSCs provide for cost recovery per quarter up to a maximum percentage of total production. Timing differences often exist between the Company's recognition of costs and their recovery as the Company accounts for costs on an accrual basis, whereas cost recovery is determined on a cash basis.
In addition, Equatorial Guinea imposes a 25% income tax on net profits. The Block P PSC provides for a discovery to be reclassified into a development area with a term of 25 years. At December 31, 2024, the Company has no SEC proved reserves related to Block P in Equatorial Guinea.
In addition, Equatorial Guinea imposes a 25% income tax on net profits. The Block P PSC provides for a discovery to be reclassified into a development area with a F-55 term of 25 years. At December 31, 2025, the Company has no SEC proved reserves related to Block P in Equatorial Guinea.
International income taxes represent amounts payable to the Government of Gabon on Profit Oil as final payment of corporate income taxes, and domestic income taxes (including other expenses treated as taxes).
International income taxes represent amounts payable to the Governments of Gabon and Cote d’Ivoire on Profit Oil as final payment of corporate income taxes, and domestic income taxes (including other expenses treated as taxes).
Instead, the Company was authorized to sell the Gabonese government’s share of production and remit the proceeds to the Gabonese government. Beginning in February 2018, the Gabonese government elected to take physical delivery of its allocated production volumes for Profit Oil (see discussion in Note 7 above).
Instead, the Company was authorized to sell the Gabonese government’s share of production and remit the proceeds to the Gabonese government. Beginning in February 2018, the Gabonese government elected to take physical delivery of its allocated production volumes for Profit Oil. Please see further discussion in Note 6. Revenue.
Total Reserves (1) Gabon (MBoe) Egypt (MBoe) Canada (MBoe) Cote d'Ivoire (MBoe) Total (MBoe) Year-end proved developed reserves: 2024 6,830 8,962 4,972 126 20,890 2023 8,053 10,141 4,260 — 22,454 2022 10,219 8,001 5,414 — 23,634 2021 7,227 — — — 7,227 Year-end proved undeveloped reserves: 2024 4,233 486 3,154 16,255 24,128 2023 1,011 451 4,731 — 6,193 2022 — 576 3,746 — 4,322 2021 3,991 — — — 3,991 (1) To convert Natural Gas to MBoe, MMcf is divided by 6 for Canada reserves, and MMcf is divided by 5.8 for Cote d'Ivoire reserves.
Total Reserves (1) Gabon (MBoe) Egypt (MBoe) Canada (MBoe) Cote d'Ivoire (MBoe) Total (MBoe) Year-end proved developed reserves: 2025 5,287 8,177 4,018 — 17,482 2024 6,830 8,962 4,972 126 20,890 2023 8,053 10,141 4,260 — 22,454 2022 10,219 8,001 5,414 — 23,634 Year-end proved undeveloped reserves: 2025 4,714 437 2,140 18,210 25,501 2024 4,233 486 3,154 16,255 24,128 2023 1,011 451 4,731 — 6,193 2022 — 576 3,746 — 4,322 (1) To convert Natural Gas to MBoe, MMcf is divided by 6 for Canada reserves, and MMcf is divided by 5.8 for Cote d'Ivoire reserves.
For 2024 and 2023, the average of such prices for crude oil used for our reserve estimate were as follows: Year Ended December 31, 2024 2023 Crude Oil ($/Bbl) Gabon $ 81.08 $ 83.22 Egypt $ 65.48 $ 64.59 Cote d'Ivoire $ 79.70 $ — Canada $ 69.12 $ 71.67 F-54 For 2024 and 2023, the adjusted average prices for our reserves associated with natural gas and NGLs were as follows: Year Ended December 31, 2024 2023 Cote d'Ivoire Natural Gas ($/Mcf) $ 2.77 $ — Canada Natural Gas ($/Mcf) $ 0.95 $ 1.91 Canada Ethane ($/Bbl) $ 3.52 $ 5.20 Propane ($/Bbl) $ 19.46 $ 20.18 Butane ($/Bbl) $ 30.68 $ 36.69 Condensates ($/Bbl) $ 69.59 $ 74.76 Production Sharing Contracts Under the Etame PSC in Gabon, the Gabonese government is the owner of all crude oil, natural gas and NGLs mineral rights.
F-54 For 2025 and 2024, the average of such prices used for our reserve estimate were as follows: Year Ended December 31, 2025 2024 Crude Oil ($/Bbl) Gabon $ 66.60 $ 81.08 Egypt $ 57.66 $ 65.48 Cote d'Ivoire $ 68.95 $ 79.70 Canada $ 61.61 $ 69.12 Natural Gas ($/Mcf) Cote d'Ivoire $ 2.77 $ 2.77 Canada $ 1.07 $ 0.95 Natural Gas Liquids ($/Bbl) Canada Ethane $ 2.90 $ 3.52 Propane $ 19.67 $ 19.46 Butane $ 25.88 $ 30.68 Condensates $ 62.44 $ 69.59 Production Sharing Contracts Under the Etame PSC in Gabon, the Gabonese government is the owner of all crude oil, natural gas and NGLs mineral rights.
F-53 Changes in Standardized Measure of Discounted Future Net Cash Flows The following table sets forth the changes in standardized measure of discounted future net cash flows as follows: Year Ended December 31, 2024 2023 2022 (in thousands) Balance at beginning of period $ 341,934 $ 624,465 $ 99,258 Sales of crude oil and natural gas, net of production costs (316,667) (296,209) (233,421) Net changes in prices and production costs 19,018 (210,703) 264,804 Extensions and discoveries 8,318 28,849 — Revisions of previous quantity estimates 144,956 139,856 95,623 Purchases 175,849 — 415,385 Changes in estimated future development costs (94,004) (92,641) (23,243) Development costs incurred during the period 28,676 — 101,495 Accretion of discount 45,917 62,447 9,926 Net change of income taxes 21,053 77,757 (121,490) Change in production rates (timing) and other 4,350 8,113 16,128 Balance at end of period $ 379,400 $ 341,934 $ 624,465 There are numerous uncertainties inherent in estimating quantities of proved reserves and in projecting future rates of production and timing of development expenditures, including many factors beyond the Company’s control.
F-53 Changes in Standardized Measure of Discounted Future Net Cash Flows The following table sets forth the changes in standardized measure of discounted future net cash flows as follows: Year Ended December 31, 2025 2024 2023 (in thousands) Balance at beginning of period $ 379,400 $ 341,934 $ 624,465 Sales of crude oil and natural gas, net of production costs (192,861) (316,667) (296,209) Net changes in prices and production costs (279,298) 18,385 (210,703) Extensions and discoveries 5,542 9,156 28,849 Revisions of previous quantity estimates 93,369 145,177 139,856 Purchases — 175,849 — Changes in estimated future development costs 18,844 (94,003) (92,641) Development costs incurred during the period 201,533 28,676 — Accretion of discount 37,940 45,917 62,447 Net change of income taxes 139,391 21,053 77,757 Change in production rates (timing) and other 6,149 3,923 8,113 Balance at end of period $ 410,009 $ 379,400 $ 341,934 There are numerous uncertainties inherent in estimating quantities of proved reserves and in projecting future rates of production and timing of development expenditures, including many factors beyond the Company’s control.
In 2024, we also added 16.5 MMBoe of reserves from our Svenska Acquisition. In 2023, operations in Gabon had 2.0 MMBoe of reserves added through positive revisions of previous estimates. 2.8 MMBoes of the positive revisions were due to performance offset by 0.8 MMBoe of negative revisions through price.
Year Ended December 31, 2023 Revisions In 2023, operations in Gabon had 2.0 MMBoe of reserves added through positive revisions of previous estimates. 2.8 MMBoe of the positive revisions were due to performance offset by 0.8 MMBoe of negative revisions through price.
International (In thousands) Gabon Egypt Canada Cote d'Ivoire Total Year Ended December 31, 2024 Future cash inflows $ 912,914 $ 782,814 $ 269,195 $ 1,423,441 $ 3,388,364 Future production costs (470,775) (370,085) (123,367) (446,645) (1,410,872) Future development costs (1) (221,743) (93,426) (62,629) (466,407) (844,205) Future income tax expense (134,216) (144,883) — (205,167) (484,266) Future net cash flows 86,180 174,420 83,199 305,222 649,021 Discount to present value at 10% annual rate (13,169) (39,281) (36,092) (181,079) (269,621) Standardized measure of discounted future net cash flows $ 73,011 $ 135,139 $ 47,107 $ 124,143 $ 379,400 Year Ended December 31, 2023 Future cash inflows $ 761,919 $ 828,418 $ 352,666 $ — $ 1,943,003 Future production costs (410,425) (383,957) (129,317) — (923,699) Future development costs (1) (88,868) (84,132) (80,129) — (253,129) Future income tax expense (148,750) (144,269) — — (293,019) Future net cash flows 113,876 216,060 143,220 — 473,156 Discount to present value at 10% annual rate (6,052) (54,313) (70,857) — (131,222) Standardized measure of discounted future net cash flows $ 107,824 $ 161,747 $ 72,363 $ — $ 341,934 Year Ended December 31, 2022 Future cash inflows $ 1,035,667 $ 729,236 $ 506,247 $ — $ 2,271,150 Future production costs (450,639) (273,260) (135,082) — (858,981) Future development costs (1) (58,057) (12,079) (69,346) — (139,482) Future income tax expense (248,024) (146,835) — — (394,859) Future net cash flows 278,947 297,062 301,819 — 877,828 Discount to present value at 10% annual rate (34,520) (70,174) (148,669) — (253,363) Standardized measure of discounted future net cash flows $ 244,427 $ 226,888 $ 153,150 $ — $ 624,465 (1) Includes costs expected to be incurred to abandon the properties, where applicable.
International (In thousands) Gabon Egypt Canada Cote d'Ivoire Total Year Ended December 31, 2025 Future cash inflows $ 666,072 $ 556,434 $ 197,628 $ 1,301,697 $ 2,721,831 Future production costs (390,226) (302,960) (82,400) (445,893) (1,221,479) Future development costs (1) (156,136) (53,308) (59,664) (348,759) (617,867) Future income tax expense (86,489) (59,725) — (125,346) (271,560) Future net cash flows 33,221 140,441 55,564 381,699 610,925 Discount to present value at 10% annual rate (1,660) (22,389) (27,793) (149,074) (200,916) Standardized measure of discounted future net cash flows $ 31,561 $ 118,052 $ 27,771 $ 232,625 $ 410,009 Year Ended December 31, 2024 Future cash inflows $ 912,914 $ 782,814 $ 269,195 $ 1,423,441 $ 3,388,364 Future production costs (470,775) (370,085) (123,367) (446,645) (1,410,872) Future development costs (1) (221,743) (93,426) (62,629) (466,407) (844,205) Future income tax expense (134,216) (144,883) — (205,167) (484,266) Future net cash flows 86,180 174,420 83,199 305,222 649,021 Discount to present value at 10% annual rate (13,169) (39,281) (36,092) (181,079) (269,621) Standardized measure of discounted future net cash flows $ 73,011 $ 135,139 $ 47,107 $ 124,143 $ 379,400 Year Ended December 31, 2023 Future cash inflows $ 761,919 $ 828,418 $ 352,666 $ — $ 1,943,003 Future production costs (410,425) (383,957) (129,317) — (923,699) Future development costs (1) (88,868) (84,132) (80,129) — (253,129) Future income tax expense (148,750) (144,269) — — (293,019) Future net cash flows 113,876 216,060 143,220 — 473,156 Discount to present value at 10% annual rate (6,052) (54,313) (70,857) — (131,222) Standardized measure of discounted future net cash flows $ 107,824 $ 161,747 $ 72,363 $ — $ 341,934 (1) Includes costs expected to be incurred to abandon the properties, where applicable.
In 2024, operations in Gabon had 4.8 MMBoe of reserves added through positive revisions of previous estimates mainly due to performance and development activities. For Egypt, we had 1.4 MMBoe of reserves added through positive F-51 revisions of previous estimates primarily as a result of our workover programs.
For Egypt, we had 1.4 MMBoe of reserves added through positive revisions of previous estimates primarily as a result of our workover programs. For Canada, we had 0.5 MMBoe of negative revisions of previous estimates primarily due to performance adjustments of existing wells.
Removed
In 2022, operations in Gabon had 2.0 MMBoe of positive revision of reserves due to the 2021/2022 drilling campaign. 0.7 MMBoe of the positive revision was due to performance and the remaining 1.3 MMBoe of positive revisions was due to price.
Added
Year Ended December 31, 2025 Revisions During 2025, the Company had net positive revisions of prior estimates of 2.8 MMBoe. These upward revisions include an increase of 1.9 MMBoe from our Egypt segment resulting from a combination of continued development activity including active in-field drilling, workovers as well as improved, forecasted well performance.
Added
In addition, we had an increase of 1.9 MMBoe from our Cote d’Ivoire segment which reflects improved recovery based on technical analysis of the upcoming Phase 5 drilling campaign. The Gabon segment also contributed to an increase of 0.3 MMBoe based on improved production performance.
Added
The upward revisions were offset by negative revisions of 1.3 MMBoe in Canada due to wells that were not reasonably expected to be developed within the five-year timeframe in accordance with the SEC guidance.
Added
Extensions and discoveries During 2025, the Company added 1.2 MMBoe of proved reserves through extensions, discoveries, and other additions related to the Phase 3 drilling campaign in Gabon.
Added
F-51 Year Ended December 31, 2024 Purchases of reserves in place For the balance at December 31, 2024, purchases of reserves in place included 16.5 MMBoe of proved reserves in Cote d'Ivoire, associated with our acquisition of Svenska Petroleum Exploration Aktiebolag (“Svenska”), and as a result, Svenska’s primary asset: a 27.39% non-operated working interest in the deepwater producing Baobab field in Block CI-40.
Added
Extensions and discoveries For the balance at December 31, 2024, extensions and discoveries included 0.5 MMBoe of proved reserves in Canada, primarily related to the drilling of new wells. Revisions In 2024, operations in Gabon had 4.8 MMBoe of reserves added through positive revisions of previous estimates mainly due to performance and development activities.
Added
For the balance at December 31, 2024, operations in Cote d'Ivoire included 1.0 MMBoe in positive revisions of reserves due to improved field performance.
Added
For the balance at December 31, 2023, operations in Canada included 1.2 MMBoe in negative revisions of reserves due to performance adjustments of existing wells.
Added
Extensions and discoveries For the balance at December 31, 2023, extensions and discoveries included 0.1 MMBoe of proved reserves in Egypt, primarily related to operational improvements and the drilling of new wells and 1.9 MMBoe of proved reserves in Canada, primarily related to the drilling of new wells.

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