Vaalco advances CI-705 phase with 2028 exploration well commitment

By Priya Raman

Vaalco Energy Inc. committed to drill one exploration well offshore Côte d’Ivoire by year-end 2028 after receiving government approval for the second exploration phase of Block CI-705.

The Houston-based company said in a Nov. 9 release that the government had approved the phase. Reprocessing means reworking existing subsurface information to improve its interpretation.

That sets a firm drilling deadline, but it does not turn the prospect into a producing asset. The release reports no discovery, resource estimate or development sanction for CI-705. Vaalco’s announcement supports more exploration. It does not support a production forecast.

What did the first phase establish?

Vaalco said it had completed the first phase’s work commitments. These included evaluating and interpreting existing seismic and well data.

The company described the results as encouraging. That wording supports another phase, but not a final commercial judgment.

No prospect-specific resource estimate, reserve estimate, oil-in-place figure or recoverable volume appears in the release.

Without a measured volume, production rate, development cost or sanctioned project, readers cannot calculate a meaningful project margin from the public announcement for this block.

Vaalco calls the first phase encouraging. The disclosed case remains geological and unquantified.

What does the second phase require?

Government approval allows three phase-two commitments:

• Carry out additional seismic reprocessing.
• Relinquish 25% of the exploration block to the government.
• Drill one exploration well by year-end 2028.

CI-705 lies in the Ivoirien basin, about 70 km west of Vaalco’s CI-40 block. CI-40 holds the Baobab and Kossipo oil fields.

In March 2025, Vaalco farmed into the exploration license and became operator with a 70% working interest. A farm-in acquires an interest in an existing license. Working interest defines a participant’s share of license rights and obligations.

The release does not explain how the relinquishment affects Vaalco’s 70% interest or any partner position. That omission prevents a clear reading of future ownership and cost exposure.

The nearby fields establish regional operating context, while CI-705 remains a separate exploration license that requires the committed seismic work and an exploration well by year-end 2028.

Plainly, phase two means more data and one well. It does not mean a production start.

How persuasive is the geological case?

George Maxwell, Vaalco’s chief executive officer, said:

“We see encouraging prospectivity on the block in the play types proven throughout the Ivoirien Basin including both structural and stratigraphic traps in the Upper Cretaceous and Albian sections.”

The statement cites structural and stratigraphic traps (subsurface features that may hold hydrocarbons) in the Upper Cretaceous and Albian sections. Prospectivity describes exploration potential. It does not establish a measured volume.

Maxwell continued:

“Recent nearby discoveries are on trend with CI-705 and provide additional validation of our play concepts and our view of the block’s prospectivity.”

On trend means aligned with the regional geological pattern. That supports a regional analogy, not proof of oil at CI-705.

The release does not name the nearby discoveries or compare their results or volumes with CI-705.

The geology may justify drilling, which is precisely what the phase requires, but the announcement stops short of demonstrating a commercial accumulation or recoverable oil volume.

Vaalco’s geological case supports further exploration. It remains unproven at CI-705.

What has not been sanctioned?

Government approval covers the exploration phase. It does not constitute development approval.

Vaalco announced no final investment decision (FID, formal project approval), development budget, production capacity, first-oil date or commercial reserve estimate for CI-705.

No well cost, rig assignment, drilling location, completion plan or production forecast was provided.

Until a well logs hydrocarbons, the block supports a drilling obligation, not a quantified reserve, a production forecast, or a financeable development plan at CI-705.

The 25% relinquishment removes that share of the block, but Vaalco gave no revised working-interest schedule or partner economics. CI-705 remains an exploration commitment, not a sanctioned oil project.

What should readers watch next?

Three items will test execution of phase two:

• Timing and results of additional seismic reprocessing.
• Clarification of Vaalco’s working interest after the 25% relinquishment.
• Rig assignment, well location and progress toward the year-end 2028 drilling commitment.

Readers should separate three future questions: whether reprocessing changes the prospect case, how relinquishment affects ownership, and whether the required exploration well arrives by year-end 2028.

The immediate watch item is not a production startup. It is execution of the seismic work and the exploration well commitment. Watch the reprocessing and drilling clock. Neither a discovery nor a development is yet in hand.