VAALCO Energy Inc. EGY, an independent exploration and production firm, has signed a contract with Borr Jack-Up XIV Inc., an affiliate of Borr Drilling Limited, to execute its 2025/2026 drilling schedule. The company’s 2025/2026 drilling program will be conducted in Gabon. It is anticipated to start in mid-2025.
The contract with Borr Drilling involves drilling many development wells alongside appraisal and exploration wells. It also includes workovers to be performed by VAALCO and options for drilling additional wells if needed.
The company shares that it has many significant projects planned for 2025. These projects are expected to drive notable organic growth for EGY in the upcoming years. The company is focused on working with the partners at the Etame field in Gabon to successfully execute a drilling program aimed at raising production in the field. The drilling campaign shall also focus on increasing the company’s current reserves.
EGY has mentioned that its contract with Borr Drilling provides it with the flexibility to optimize its offshore drilling campaign and workover plans in Gabon. VAALCO’s drilling campaign involves several wells in the Etame field and at the SEENT platform. The exact number of wells and their sequencing are yet to be determined.
The program also includes a re-drill and workovers in the Ebouri field. These workovers are intended to restore production and access the reserves in this field which were previously removed from proved reserves or shut down due to the presence of H2S. The company is focused on achieving continued organic growth across its diversified portfolio over the coming years.
EGY’s Zacks Rank and Key Picks
EGY currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks from the energy sector areTechnipFMC plc FTI, Oceaneering International OII and Nine Energy Service NINE. TechnipFMC and Oceaneering International currently sport a Zacks Rank #1 (Strong Buy) each, while Nine Energy Service carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
TechnipFMC is a leading manufacturer and supplier of products, services and fully integrated technology solutions for the energy industry. The company’s total backlog witnessed a high of $14.7 million in the third quarter of 2024, indicating an 11.1% increase from the previous year’s level. This growing backlog ensures strong revenue growth for FTI.
Oceaneering International delivers integrated technology solutions across all stages of the offshore oilfield lifecycle. The company is a leading offshore equipment and technology solutions provider to the energy industry. Its proven ability to deliver innovative, integrated solutions supports ongoing client retention and new business opportunities, ensuring steady revenue growth.
Nine Energy Service provides onshore completion and production services for unconventional oil and gas resource development. The company operates across key prolific basins in the United States, including the Permian, Eagle Ford, MidCon, Barnett, Bakken, Rockies, Marcellus and Utica, as well as throughout Canada. With a sustained demand for oil and gas in the future, the need for NINE’s services is anticipated to increase, which should position the company for growth in the long run.
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TechnipFMC plc (FTI) : Free Stock Analysis Report
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Vaalco Energy Inc (EGY) : Free Stock Analysis Report
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