VAALCO ENERGY INC /DE/

Previous wording

•the anticipated impact on our business and operations of the OBBBA; and

Current wording

•the anticipated impact on our business and operations of the OBBBA (defined below); and

Previous wording

Vaalco is a Houston, Texas-based, African-focused independent energy company with a strong production and reserve portfolio of assets in Gabon, Egypt, Côte d’Ivoire, Equatorial Guinea, Nigeria, and, prior to the Canada Assets Divestment, producing properties in Canada. We are currently engaged in the acquisition, exploration, development and production of crude oil, natural gas and NGLs.

Current wording

Vaalco is a Houston, Texas-based, African-focused independent energy company with a strong production and reserve portfolio of assets in Gabon, Egypt, Côte d’Ivoire, Equatorial Guinea, and, prior to the Canada Assets Divestment, producing properties in Canada. We are currently engaged in the acquisition, exploration, development and production of crude oil, natural gas and NGLs.

Previous wording

Geopolitical Conflict and Other Market Forces – The Company continues to monitor geopolitical developments globally, and specifically in Europe, the Middle East, Africa, and North America, where they have the potential to impact operational continuity and market dynamics. Global markets are also experiencing volatility and uncertainty connected to the Russia-Ukraine war, conflicts in the Middle East, including the United States-Israel-Iran war and the U.S intervention in Venezuela. Additionally, geopolitical tensions and localized disruptions persist in parts of West Africa, where we hold significant producing and development interests, and require ongoing vigilance regarding political, economic, and security risks. The duration and impact of these ongoing armed conflicts, and the potential of these conflicts spreading to more regions are uncertain and could adversely affect the global economy, financial markets, our customers and in turn, us.

Current wording

Geopolitical Conflict and Other Market Forces – The Company continues to monitor geopolitical developments globally, and specifically in Europe, the Middle East, Africa, and North America, where they have the potential to impact operational continuity and market dynamics. Global markets are also experiencing volatility and uncertainty connected to the Russia-Ukraine war, conflicts in the Middle East, including the United States-Israel-Iran war and the U.S. intervention in Venezuela. Additionally, geopolitical tensions and localized disruptions persist in parts of West Africa, where we hold significant producing and development interests, which require ongoing vigilance regarding political, economic, and security risks. The duration and impact of these ongoing armed conflicts, and the potential of these conflicts spreading to more regions are uncertain and could adversely affect the global economy, financial markets, our customers and in turn, us.

Previous wording

In addition, the BWE Consortium completed its 3D seismic campaign across the Niosi and Guduma blocks in January 2026. The seismic data processing and interpretation are currently ongoing.

Current wording

In January 2026, the BWE Consortium completed its 3D seismic campaign across the Niosi and Guduma blocks. Processing and interpretation of the seismic data remain ongoing.

Previous wording

Following the completion of its planned dry dock refurbishment in February 2026, the Baobab FPSO returned to Côte d’Ivoire and was successfully reconnected to field infrastructure in early April 2026. Production resumed from all producer wells in June 2026. While production has restarted, the first crude oil lifting is scheduled for August 2026. A drilling rig has been mobilized and the drilling program is expected to start in September 2026. This development campaign is expected to drive meaningful production growth and further unlock the value of the main Baobab field in Block CI-40.

Current wording

Following the completion of its planned dry dock refurbishment in February 2026, the FPSO Baobab Ivoirien returned to Côte d’Ivoire and was successfully reconnected to field infrastructure in early April 2026. Production resumed from all producer wells in June 2026, and the first crude oil lifting was completed in August 2026. The Phase Five drilling campaign commenced following the batch-setting of top-holes by the operator. After the top-hole sections of all wells are drilled, the wells will then be completed and placed on production sequentially. The first production well is expected to come online near the end of 2026. The campaign is expected to support future production growth and the continued development of the main Baobab field in Block CI-40.

Previous wording

In February 2026, the Company became the operator with a 60% working interest in the Kossipo field on the CI-40 Block with a field development plan being actively progressed toward completion in the first half of 2027.

Current wording

In February 2026, the Company became the operator with a 60% working interest in the Kossipo field on the CI-40 Block with a field development plan (“FDP”) being actively progressed toward completion in the first half of 2027 Vaalco continues analyzing ocean bottom node (“OBN”) seismic data that was recently acquired which is helping to drive and de-risk the Company’s updated evaluation as it progresses with the FDP.

Previous wording

We own a 60% working interest in an undeveloped portion of Block P offshore Equatorial Guinea where we are the designated operator. We have an existing plan of development of the Venus field discovery on Block P, which focuses on key areas of drilling evaluations, facilities design, market inquiries and metocean review. The Company has completed the initial Front End Engineering and Design study that confirmed the viability of the development concept and is currently evaluating alternative technical solutions which may deliver enhanced economic value. Work is progressing towards Final Investment Decision in the fourth quarter of 2026.

Current wording

We own a 60% working interest in an undeveloped portion of Block P offshore Equatorial Guinea where we are the designated operator. We have an existing plan of development of the Venus field discovery on Block P, which focuses on key areas of drilling evaluations, facilities design, market inquiries and metocean review. The Company has completed the initial Front End Engineering and Design study that confirmed the viability of the development concept and is currently evaluating alternative technical solutions which may deliver enhanced economic value. Work is progressing toward Final Investment Decision in the fourth quarter of 2026.

Previous wording

As discussed above, in February 2026, the Company completely exited its Canadian oil and gas operations. Please see Part I, Item 1, Note 3. Acquisition and Disposition to the unaudited condensed consolidated financial statements for further discussion on the sale of the Canada operating assets.

Current wording

As discussed above, in February 2026, the Company completely exited its Canadian oil and gas operations. Please see Part I, Item 1, Note 3. Acquisition and Divestment to the unaudited condensed consolidated financial statements for further discussion on the sale of the Canada operating assets.

Previous wording

Our primary sources of liquidity have been cash flows from operations, cash on hand and available borrowing capacity under the 2025 RBL Facility, and our primary use of cash has been to fund capital expenditures for development activities. At June 30, 2026, we had unrestricted cash of $30.4 million. We continually monitor the availability of capital resources, including equity and debt financings that could be utilized to meet our future financial obligations, planned capital expenditure activities and liquidity requirements including those to fund opportunistic acquisitions. Our future success in growing proved reserves, production and balancing the long-term development of our assets with a focus on generating attractive corporate-level returns will be highly dependent on the capital resources available to us.

Current wording

Our primary sources of liquidity have been cash flows from operations, cash on hand and available borrowing capacity under the 2025 RBL Facility, and our primary use of cash has been to fund capital expenditures for development activities. At September 30, 2026, we had unrestricted cash of $51.3 million. We continually monitor the availability of capital resources, including equity and debt financings that could be utilized to meet our future financial obligations, planned capital expenditure activities and liquidity requirements including those to fund opportunistic acquisitions. Our future success in growing proved reserves, production and balancing the long-term development of our assets with a focus on generating attractive corporate-level returns will be highly dependent on the capital resources available to us.

Previous wording

Our cash flows for the six months ended June 30, 2026 and 2025 are as follows:

Current wording

Our cash flows for the nine months ended September 30, 2026 and 2025 are as follows:

Previous wording

The $16.6 million decrease in net cash provided by operating activities during the six months ended June 30, 2026 compared to the six months ended June 30, 2025 was primarily attributable to cash settlements paid on matured derivative contracts and higher exploration expenses, including the acquisition of seismic data and costs associated with an unsuccessful well. These decreases were partially offset by higher crude oil, natural gas and natural gas liquids sales and favorable changes in working capital and other assets and liabilities.

Current wording

The $22.3 million increase in net cash provided by operating activities during the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025 was primarily attributable to higher crude oil, natural gas and natural gas liquids sales and favorable changes in working capital and other assets and liabilities. These increases were partially offset by cash settlements paid on matured derivative contracts and higher exploration expenses, including the acquisition of seismic data and costs associated with drilling activities in Gabon.

Previous wording

Net cash used in investing activities during the six months ended June 30, 2026 was primarily attributable to $181.6 million for expenditures associated with the Baobab FPSO refurbishment work and reconnection activities, as well as the development drilling programs in Gabon and Egypt, offset by cash proceeds of $25.5 million from the Canada Assets Divestment. For the six months ended June 30, 2025, cash used in investing activities was due to costs associated with the development drilling programs in Egypt, as well as maintenance, project costs and long lead items for Gabon and Côte d’Ivoire.

Current wording

Net cash used in investing activities during the nine months ended September 30, 2026 was primarily attributable to $268.5 million for expenditures associated with the FPSO Baobab Ivoirien Renovation, as well as the development drilling programs in Gabon, Côte d’Ivoire and Egypt, offset by cash proceeds of $25.5 million from the Canada Assets Divestment. For the nine months ended September 30, 2025, cash used in investing activities was due to costs associated with the development drilling programs in Egypt, as well as maintenance, project costs and long lead items for Gabon and Côte d’Ivoire.

Previous wording

Net cash provided by financing activities during the six months ended June 30, 2026 primarily consisted of $117.0 million of proceeds from borrowings under the 2025 RBL Facility, offset by cash outflows of $13.4 million for dividend distributions, $2.2 million for deferred financing costs, $2.0 million to satisfy employee withholding tax obligations related to vested equity awards, and $6.2 million of principal payments on finance lease obligations. For the six months ended June 30, 2025, cash used in financing activities primarily included $13.1 million for dividend distributions, $6.9 million of payments for deferred financing costs and $6.3 million of principal payments on our finance leases, offset by $60.0 million in proceeds from borrowing under the 2025 RBL Facility.

Current wording

Net cash provided by financing activities during the nine months ended September 30, 2026 primarily consisted of $179.0 million of proceeds from borrowings under the 2025 RBL Facility, offset by cash outflows of $20.1 million for dividend distributions, $2.2 million for deferred financing costs, $2.0 million to satisfy employee withholding tax obligations related to vested equity awards, and $9.1 million of principal payments on finance lease obligations. For the nine months ended September 30, 2025, cash provided by financing activities related to $60.0 million in proceeds from borrowing under the 2025 RBL Facility, offset by $19.8 million for dividend distributions, $7.1 million of payments for deferred financing costs and $9.8 million of principal payments on our finance leases.

Previous wording

We actively manage commodity price risk by entering into derivative transactions that help mitigate the impact of volatility in crude oil, NGL and natural gas prices on our cash flows and operating results; however, these transactions may also limit our cash flow in periods of rising crude oil, NGL and natural gas prices. We have entered into derivative contracts primarily with counterparties that are also lenders under the 2025 RBL Facility. Our 2025 RBL Facility requires us to enter into commodity price hedge positions establishing certain minimum fixed prices for anticipated future production. See Part I, Item 1, Note 7. Derivatives to the unaudited condensed consolidated financial statements for further discussion.

Current wording

We actively manage commodity price risk by entering into derivative transactions that help mitigate the impact of volatility in crude oil, NGL and natural gas prices on our cash flows and operating results; however, these transactions may also limit our cash flow in periods of rising crude oil, NGL and natural gas prices. We have entered into derivative contracts primarily with counterparties that are also lenders under the 2025 RBL Facility. If aggregate borrowings exceed 35% of specified thresholds, our 2025 RBL Facility requires us to enter into commodity price hedge positions establishing certain minimum fixed prices for anticipated future production.

Previous wording

Capital Projects and Expenditures - For the six months ended June 30, 2026, we had accrual basis capital expenditures of $172.4 million compared to $92.2 million accrual basis capital expenditures for the same period in 2025. Capital spending during the six-month period ended June 30, 2026, primarily reflected development activities associated with the Phase Three drilling campaign in Gabon, refurbishment and reconnection activities relating to the FPSO in Côte d’Ivoire, expenditures associated with an unsuccessful exploration well in Gabon and costs incurred in connection with the 3D seismic campaign across the Niosi and Guduma blocks.

Current wording

Capital Projects and Expenditures - For the nine months ended September 30, 2026, we had accrual basis capital expenditures of $256.3 million compared to $147.6 million of accrual basis capital expenditures for the same period in 2025. Capital spending during the nine-month period ended September 30, 2026, primarily reflected development activities associated with the Phase Three drilling campaign in Gabon, refurbishment and reconnection activities relating to the FPSO Baobab Ivoirien in Côte d’Ivoire, Phase Five drilling campaign in Côte d’Ivoire, exploration expenses attributable to Gabon and costs incurred in connection with the 3D seismic campaign across the Niosi and Guduma blocks.

Previous wording

Leases - We are a party to several operating and financing lease arrangements, including operating leases for the corporate office, a drilling rig, rental of marine vessels and a helicopter, warehouse and storage facilities, equipment and financing lease agreements for the FSO, generators and turbines used in the operations of the Etame Marin block and for equipment, offices and vehicles used in the operations in Canada and Egypt. The annual costs of these leases are significant to us.

Current wording

Leases - We are a party to several operating and financing lease arrangements, including operating leases for the corporate office, a drilling rig, rental of marine vessels and a helicopter, warehouse and storage facilities, equipment and financing lease agreements for the FSO, generators and turbines used in the operations of the Etame Marin block and for equipment, offices and vehicles used in the operations in Egypt. The annual costs of these leases are significant to us.

Previous wording

Merged Concession Agreement - Under the Merged Concession Agreement, we have minimum financial work commitments of $50.0 million per each five-year period of the primary development term, commencing on February 1, 2020. Through June 30, 2026, our financial work commitments have exceeded the five-year minimum $50 million threshold and any excess carries forward to offset against subsequent five-year commitments. See Part I, Item 1, Note 9. Commitments and Contingencies to the unaudited condensed consolidated financial statements for additional information.

Current wording

Merged Concession Agreement - Under the Merged Concession Agreement, we have minimum financial work commitments of $50.0 million for each five-year period of the primary development term, commencing on February 1, 2020. Through September 30, 2026, our financial work commitments have exceeded the five-year minimum $50 million threshold and any excess carries forward to offset against subsequent five-year commitments. See Part I, Item 1, Note 9. Commitments and Contingencies to the unaudited condensed consolidated financial statements for additional information.

Previous wording

Drilling Rig Commitment -The Company entered into the Bareboat Charter for its Phase Three drilling campaign in Gabon. Pursuant to the Bareboat Charter, the Company also entered into a service agreement with a third party for purposes of maintaining and operating the drilling rig on its behalf. The Bareboat Charter and the service agreement commenced in November 2025 and have a noncancelable period of 300 days plus five single well options. The Bareboat Charter and the service agreement stipulate fixed day rates and other variable payments.

Current wording

Drilling Rig Commitment -The Company entered into the Bareboat Charter for its Phase Three drilling campaign in Gabon. Pursuant to the Bareboat Charter, the Company also entered into a service agreement with a third party for purposes of maintaining and operating the drilling rig on its behalf. The Bareboat Charter and the service agreement commenced in November 2025 and have a noncancelable period of 300 days plus five single well options. The Bareboat Charter and the service agreement stipulate fixed day rates and other variable payments. The drilling rig was demobilized in October 2026 following the completion of the Phase Three drilling campaign.

Previous wording

BWE Consortium - We are a member of the BWE Consortium that was awarded the licenses for the Niosi Marin and the Guduma Marin exploration blocks in Gabon. These licenses are covered by PSCs entered into with the Gabonese Government. These PSCs will have two exploration periods totaling eight years which may be extended by an additional two years. During the first exploration period, the joint owners intend to reprocess existing seismic and carry out a 3D seismic campaign on these two blocks and have also committed to drilling exploration wells on both blocks. Under the terms of the BWE Consortium PSC, the Company holds a 37.5% non-operating working interest in these licenses.

Current wording

BWE Consortium - We are a member of the BWE Consortium that was awarded the licenses for the Niosi Marin and Guduma Marin exploration blocks in Gabon. These licenses are covered by PSCs entered into with the Gabonese Government. These PSCs will have two exploration periods totaling eight years which may be extended by an additional two years. In January 2026, the BWE Consortium completed its 3D seismic campaign across the Niosi and Guduma blocks. Processing and interpretation of the seismic data remain ongoing. During the first exploration period, the joint owners have also committed to drilling exploration wells on both blocks. Under the terms of the BWE Consortium PSC, the Company holds a 37.5% non-operating working interest in these licenses.

Previous wording

The Company paid a quarterly cash dividend of $0.0625 per share of common stock for the second quarter of 2026 ($0.25 annualized) on June 26, 2026 to stockholders of record at the close of business on May 22, 2026. The Company also announced its next quarterly cash dividend of $0.0625 per share of common stock for the third quarter of 2026 ($0.25 annualized) to be paid on September 22, 2026 to stockholders of record at the close of business on August 21, 2026.

Current wording

The Company paid a quarterly cash dividend of $0.0625 per share of common stock for the third quarter of 2026 ($0.25 annualized) on September 22, 2026 to stockholders of record at the close of business on August 21, 2026. The Company also announced its next quarterly cash dividend of $0.0625 per share of common stock for the fourth quarter of 2026 ($0.25 annualized) to be paid on December 22, 2026 to stockholders of record at the close of business on November 20, 2026.

Previous wording

Net income for the three months ended June 30, 2026 was $42.4 million compared to a net income of $8.4 million during the same period in 2025. See discussion below for changes in revenues and expenses.

Current wording

Net loss for the three months ended September 30, 2026 was $39.8 million compared to a net income of $1.1 million during the same period in 2025. See discussion below for changes in revenues and expenses.

Previous wording

Crude oil, natural gas and NGLs revenues increased $38.3 million, or approximately 40%, to $135.2 million during the three months ended June 30, 2026 from $96.9 million during the same period in 2025. The increase in revenue is primarily attributable to higher realized sales prices per barrel, partially offset by a slight decline in sales volumes.

Current wording

Crude oil, natural gas and NGLs revenues increased $86.0 million, or approximately 141%, to $147.0 million during the three months ended September 30, 2026 from $61.0 million during the same period in 2025. The increase in revenue is primarily attributable to higher realized sales prices per barrel along with an increase in sales volumes.

Previous wording

Crude oil sales in Gabon are a function of the number and size of crude oil liftings in each year and thus crude oil sales do not always coincide with volumes produced in any given year. Total revenue from our Gabon segment was $91.8 million during the three months ended June 30, 2026, an increase of $33.2 million from the $58.6 million of revenue reported during the three months ended June 30, 2025. The increase in revenues is primarily due to a higher average realized sales price received in Gabon of $92.31 per Bbl for the three months ended June 30, 2026 compared to the $65.02 per Bbl average realized sales price received during the same period in 2025. Sales volumes also slightly increased from the 900 MBbls reported during the second quarter of 2025 to 948 MBbls for the three months ended June 30, 2026. Gabon’s share of crude oil inventory, excluding royalty barrels, was approximately 125 MBbls and 55 MBbls at June 30, 2026 and 2025, respectively.

Current wording

Crude oil sales in Gabon are a function of the number and size of crude oil liftings in each year and thus crude oil sales do not always coincide with volumes produced in any given year. Total revenue from our Gabon segment was $73.8 million during the three months ended September 30, 2026, an increase of $52.5 million from the $21.3 million of revenue reported during the three months ended September 30, 2025. The increase in revenues is primarily due to a higher average realized sales price received in Gabon of $103.95 per Bbl for the three months ended September 30, 2026 compared to the $62.40 per Bbl average realized sales price received during the same period in 2025. Sales volumes also increased to 663 MBbls for the three months ended September 30, 2026 from the 333 MBbls reported during the third quarter of 2025. Gabon’s share of crude oil inventory, excluding royalty barrels, was approximately 226 MBbls and 292 MBbls at September 30, 2026 and 2025, respectively.

Previous wording

Crude oil sales in Egypt are either sold to a third party via a cargo lifting or sold directly to the government, through EGPC. During the three months ended June 30, 2026, the oil sold in Egypt was through direct sales to EGPC. Revenue from our Egypt segment increased to $43.4 million during the three months ended June 30, 2026 from $33.3 million during the comparable period in 2025. The increase in revenues was primarily driven by a higher average realized sales price, which increased to $64.50 per Bbl from $48.01 per Bbl in the same period in the prior year, partially offset by lower sales volumes of 672 MBbls compared to 693 MBbls during the three months ended June 30, 2025.

Current wording

Crude oil in Egypt is either sold to a third party via a cargo lifting or sold directly to the government, through EGPC. During the three months ended September 30, 2026, all crude oil sales were made directly to EGPC. Revenue from our Egypt segment increased to $45.3 million during the three months ended September 30, 2026 from $35.7 million during the comparable period in 2025. The increase in revenues was primarily driven by a higher average realized sales price, which increased to $64.05 per Bbl from $51.51 per Bbl in the same period in the prior year and by slightly higher sales volumes of 708 MBbls compared to 693 MBbls during the three months ended September 30, 2025.

Previous wording

Crude oil sales in Côte d’Ivoire are sold through a marketing contract with an international oil trading company which offers the cargo shipments to buyers, mainly refineries, around the world. As previously discussed, the Baobab FPSO ceased production in January 2025 to undergo a planned refurbishment which was completed in April 2026. The FPSO was reconnected to field infrastructure and production resumed from all producing wells. While production has restarted, the first crude oil lifting is scheduled for August 2026. As such, there were no revenues from the Company’s Côte d’Ivoire segment during the three months ended June 30, 2026. Revenues during the three months ended June 30, 2025 were $0.4 million. Côte d’Ivoire’s share of crude oil inventory was approximately 106 MBbls at June 30, 2026.

Current wording

Crude oil production from the Côte d’Ivoire assets is marketed under an agreement with an international oil trading company that markets and sells cargoes to purchasers, primarily refineries, worldwide. As previously discussed, the FPSO Baobab Ivoirien ceased production in January 2025 to undergo a planned refurbishment program, which was completed in February 2026. Following completion of the refurbishment, the FPSO Baobab Ivoirien was reconnected to field infrastructure and production resumed from all producing wells. The first crude oil lifting occurred in August 2026. Revenue from the Côte d’Ivoire assets for the three months ended September 30, 2026 was $27.8 million, reflecting total sales volumes of 328 MBbls at an average realized sales price of $84.94 per Bbl. No crude oil sales were recorded during the three months ended September 30, 2025, as production remained suspended while the FPSO Baobab Ivoirien underwent refurbishment. At September 30, 2026, Côte d’Ivoire’s share of crude oil inventory was approximately 156 MBbls.

Previous wording

Prior to the Canada Assets Divestment, crude oil sales in Canada were normally sold through pipelines to a third party. During the three months ended June 30, 2025, the Company’s Canadian segment contributed $4.7 million of revenue based on sales volumes of 172 MBoe and an average realized sales price received of $27.35 per Boe.

Current wording

Prior to the Canada Assets Divestment, crude produced in Canada was normally sold through pipelines to a third party. During the three months ended September 30, 2025, the Company’s Canadian segment reported revenues of $4.0 million from sales volumes of 155 MBoe, reflecting an average realized sales price of $26.13 per Boe.

Previous wording

Production expenses increased $5.1 million, or approximately 13%, for the three months ended June 30, 2026 to $45.5 million from $40.4 million for the same period in the prior year. The increase was primarily attributable to higher production expenses in our Gabon and Egypt segments, offset by lower production expenses resulting from the Canada Assets Divestment and the change in oil inventory adjustments in Cote d’Ivoire. Production expenses associated with unsold crude oil inventory are capitalized and included in inventory, which are then subsequently expensed when oil inventory is sold. On a per barrel basis, production expense, excluding workover expense and stock compensation expense, for the three months ended June 30, 2026 increased to $28.05 per barrel from $22.85 per barrel for the three months ended June 30, 2025.

Current wording

Production expenses increased by $15.1 million, or approximately 51%, for the three months ended September 30, 2026 to $45.0 million from $29.9 million for the same period in the prior year. The increase was primarily attributable to higher production expenses in our Gabon, Egypt and Côte d’Ivoire segments due to higher chemical and fuel costs, partially offset by lower production expenses resulting from the Canada Assets Divestment and the change in oil inventory adjustments in Gabon and Côte d’Ivoire. Production expenses associated with unsold crude oil inventory are capitalized and included in inventory, and are subsequently expensed when oil inventory is sold. On a per barrel basis, production expense, excluding workover expense and stock compensation expense, for the three months ended September 30, 2026 increased to $26.44 per barrel from $25.23 per barrel for the three months ended September 30, 2025.

Previous wording

Exploration expensefor the three months ended June 30, 2026 of $0.1 million was attributable to expenses related to the Niosi and Guduma blocks in Gabon. Exploration expenses for three months ended June 30, 2025 were $2.5 million, which were attributable to the purchase of seismic data for Block 705 in Côte d’Ivoire.

Current wording

Exploration expensefor the three months ended September 30, 2026 was $4.8 million and was primarily related drilling activities in Gabon. Exploration expense for the three months ended September 30, 2025 was $0.4 million, consisting primarily of costs incurred for the acquisition of additional seismic data for Block 705 in Côte d’Ivoire and for exploration activities related to the Niosi and Guduma blocks in Gabon.

Previous wording

Depreciation, depletion and amortization costs increased by $6.0 million, or approximately 21%, for the three months ended June 30, 2026 to $34.3 million from $28.3 million during the same period in 2025. The increase in depreciation, depletion and amortization expense is primarily related to the higher depletable costs in Gabon, partially offset by a decrease in depletable costs as a result of the Canada Assets Divestment.

Current wording

Depreciation, depletion and amortization costs increased by $22.8 million, or approximately 111%, for the three months ended September 30, 2026 to $43.4 million from $20.6 million during the same period in 2025. The increase in depreciation, depletion and amortization expense is primarily related to the higher sales volumes in Gabon and Côte d’Ivoire, partially offset by a decrease in depletable costs as a result of the Canada Assets Divestment.

Previous wording

General and administrative expenses increased by $2.7 million, or 32%, for the three months ended June 30, 2026 to $11.2 million from $8.5 million during the same period in 2025. The increase in general and administrative expenses was primarily a result of higher legal and professional service fees, which included approximately $1.9 million of non-recurring costs associated with business development activities.

Current wording

General and administrative expenses increased by $0.2 million, or 2%, for the three months ended September 30, 2026 to $9.0 million from $8.8 million during the same period in 2025. The increase in general and administrative expenses was primarily a result of higher legal and professional fees.

Previous wording

Derivative instruments gain (loss), netis attributable to our swaps and collars as discussed in Part I, Item 1, Note 7. Derivatives to the unaudited condensed consolidated financial statements. During the three months ended June 30, 2026, we recognized a net derivative gain on commodity derivative contracts of $18.7 million compared to a net derivative gain of $0.4 million during the same period in 2025. The derivative gain for the three months ended June 30, 2026 is a result of the decrease in the price of Dated Brent crude oil over the initial strike price per barrel of the option over the three months ended June 30, 2026. Our derivative instruments currently cover a portion of our oil production through September 2027.

Current wording

September 30, 2026, we recognized a net derivative loss on commodity derivative contracts of $57.0 million compared to a net derivative loss of $1.1 million during the same period in 2025. The increase in net derivative loss was primarily attributable to increases in Dated Brent crude oil prices relative to the applicable strike prices of our derivative instruments, as well as increased derivative positions entered into during the current year compared to the prior year. Our derivative instruments currently cover a portion of our oil production through December 2027.

Previous wording

Interest expense, netwas $4.4 million for the six months ended June 30, 2026 compared to $3.9 million during the same period in 2025. The increase in net interest expense for the six months ended June 30, 2026 primarily resulted from an increase in our amortization of debt issue costs, commitment fees incurred and interest incurred on our borrowings under the 2025 RBL Facility, partially offset by interest income.

Current wording

Interest expense, netwas $5.6 million for the three months ended September 30, 2026 compared to $2.3 million for the same period in 2025. The increase was primarily attributable to increased borrowings under the 2025 RBL Facility and higher amortization of debt issue costs and commitment fees, partially offset by interest income. Interest expense, net also included an unrealized gain of $0.1 million related to changes in the fair value of our interest rate derivative instrument.

Previous wording

Other income (expense), netwas a net expense of $0.3 million for the three months ended June 30, 2026 compared to a net income of $0.4 million during the same period in 2025. Other income (expense), net, normally consists primarily of foreign currency gains and losses.

Current wording

Other income (expense), netwas a net expense of $1.2 million for the three months ended September 30, 2026 compared to a net income of less than $0.1 million during the same period in 2025. Other income (expense), net, primarily consists of foreign currency gains and losses.

Previous wording

Income tax expensefor the three months ended June 30, 2026 was $16.8 million, which includes a $1.0 million favorable oil price adjustment as a result of the change in value of the government of Gabon's allocation of Profit Oil between the time it was produced and the time it was taken in-kind. After excluding this impact, income taxes were $17.8 million for the period. Income tax expense for the three months ended June 30, 2025 was an expense of $7.0 million, which includes a $3.1 million favorable oil price adjustment as a result of the change in value of the government of Gabon's allocation of Profit Oil between the time it was produced and the time it was taken in-kind. After excluding this impact, current income taxes were $10.1 million for the period.

Current wording

Income tax expensefor the three months ended September 30, 2026 was $20.3 million, which includes a $4.1 million unfavorable oil price adjustment as a result of the change in value of the government of Gabon's allocation of Profit Oil between the time it was produced and the time it was taken in-kind. Income tax expense for the three months ended September 30, 2025 was a benefit of $3.6 million, which includes a $3.9 million favorable oil price adjustment as a result of the change in value of the government of Gabon's allocation of Profit Oil between the time it was produced and the time it was taken in-kind.

Previous wording

Net loss for the six months ended June 30, 2026 was $51.3 million compared to a net income of $16.1 million during the same period in 2025. See discussion below for changes in revenues and expenses.

Current wording

Net loss for the nine months ended September 30, 2026 was $91.2 million compared to a net income of $17.2 million during the same period in 2025. See discussion below for changes in revenues and expenses.

Previous wording

Crude oil sales in Gabon are a function of the number and size of crude oil liftings in each year and thus crude oil sales do not always coincide with volumes produced in any given year. Total revenues from our Gabon segment were $113.2 million during the six months ended June 30, 2026, an increase of $2.4 million from the $110.8 million reported during the six months ended June 30, 2025. The increase in revenues is primarily due to the higher average realized sales price received in Gabon of $85.71 per Bbl for the six months ended June 30, 2026 compared to $71.04 per Bbl average realized sales price received during the same period in 2025. The increase in sales was partially offset by lower sales volumes of 1,271 MBbls for the six months ended June 30, 2026 compared to 1,558 MBbls reported during the same period of 2025. Gabon's share of crude oil inventory, excluding royalty barrels, was approximately 125 MBbls and 55 MBbls at June 30, 2026 and 2025, respectively.

Current wording

Crude oil sales in Gabon are a function of the number and size of crude oil liftings in each year and thus crude oil sales do not always coincide with volumes produced in any given year. Total revenues from our Gabon segment were $187.0 million during the nine months ended September 30, 2026, an increase of $55.0 million from the $132.0 million reported during the nine months ended September 30, 2025. The increase in revenues is primarily due to the higher average realized sales price received in Gabon of $91.96 per Bbl for the nine months ended September 30, 2026 compared to $69.52 per Bbl average realized sales price received during the same period in 2025. Sales volume increased slightly to 1,934 MBbls for the nine months ended September 30, 2026 compared to 1,891 MBbls reported during the same period of 2025. Gabon’s share of crude oil inventory, excluding royalty barrels, was approximately 226 MBbls and 292 MBbls at September 30, 2026 and 2025, respectively.

Previous wording

Crude oil sales in Egypt are either sold to a third party via a cargo lifting or sold directly to the government, through EGPC. During the six months ended June 30, 2026, the oil sold in Egypt was through direct sales to EGPC. The Company’s Egypt segment contributed $82.3 million of revenue to the Company’s total revenue for the six months ended June 30, 2026, which is $15.1 million higher than the $67.2 million of revenue reported during the six months ended June 30, 2025. The increase in revenues was primarily due to the increase in average realized sales price from $50.34 per Bbl during the six months ended June 30, 2025 to $60.49 per Bbl during the same period in 2026, as well as the slight increase in sales volumes from 1,334 MBbls to 1,360 MBbls.

Current wording

Crude oil in Egypt is either sold to a third party via a cargo lifting or sold directly to the government, through EGPC. During the nine months ended September 30, 2026, all crude oil sales were made directly to EGPC. The Company’s Egypt segment reported revenue of $127.6 million for the nine months ended September 30, 2026, which is $24.7 million higher than the $102.9 million of revenue reported during the nine months ended September 30, 2025. The increase in revenues was primarily due to higher average realized sales price, which increased to $61.70 per Bbl for the nine months ended September 30, 2026 from $50.74 per Bbl during the comparable period in 2025, as well as a slight increase in sales volume to 2,068 MBbls for the nine months ended September 30, 2026 compared to 2,027 MBbls during the same period of 2025.

Previous wording

Crude oil sales in Côte d’Ivoire are sold through a marketing contract with an international oil trading company which offers the cargo shipments to buyers, mainly refineries, around the world. As previously discussed, following the completion of its planned dry dock refurbishment in February 2026, the Baobab FPSO returned to Côte d’Ivoire and was successfully reconnected to field infrastructure in early April 2026. While production has restarted, the first crude oil lifting is scheduled for August 2026. As such, there were no revenues from the Côte d’Ivoire segment for the six months ended June 30, 2026. The Côte d’Ivoire segment reported revenues of $18.4 million during the six months ended June 30, 2025 with total sales volumes of 238 MBbls and an average realized sales price received of $77.36 per Bbl. Côte d’Ivoire’s share of crude oil inventory was approximately 106 MBbls at June 30, 2026.

Current wording

Crude oil production from the Côte d’Ivoire assets is marketed under an agreement with an international oil trading company that markets and sells cargoes to purchasers, primarily refineries, worldwide. As previously discussed, the FPSO Baobab Ivoirien ceased production in January 2025 to undergo a planned refurbishment program, which was completed in February 2026. Following completion of the refurbishment, the FPSO Baobab Ivoirien was reconnected to field infrastructure and production resumed from all producing wells. The first crude oil lifting occurred in August 2026. Revenue from the Côte d’Ivoire assets for the nine months ended September 30, 2026 was $27.8 million, reflecting total sales volumes of 328 MBbls at an average realized sales price of $84.94 per Bbl. The Côte d’Ivoire segment reported revenues of $18.4 million during the nine months ended September 30, 2025 with total sales volumes of 238 MBbls and an average realized sales price received of $77.36 per Bbl. Côte d’Ivoire’s share of crude oil inventory was approximately 156 MBbls at September 30, 2026.

Previous wording

Prior to the Canada Assets Divestment, crude oil production from our Canadian operations was typically sold to third parties through pipeline transportation arrangements. During the six months ended June 30, 2026, revenues from our Canada segment reflect production sold from January 1, 2026 through the closing date of the Canada Assets Divestment. For this period, the Canada segment generated revenues of $2.3 million and reported sales volumes of 83 MBoe, with an average realized sales price of $27.34 per Boe. During six months ended June 30, 2025, we recorded revenues of $10.9 million on sales volumes of 351 MBoe and an average realized sales price received of $31.04 per Boe.

Current wording

Prior to the Canada Assets Divestment, crude oil production from our Canadian operations was typically sold to third parties through pipeline transportation arrangements. During the nine months ended September 30, 2026, revenues from our Canada segment reflected production sold from January 1, 2026 through the closing date of the Canada Assets Divestment. For this period, the Canada segment generated revenues of $2.3 million and reported sales volumes of 83 MBoe, with an average realized sales price of $27.04 per Boe. During the nine months ended September 30, 2025, we recorded revenues of $14.9 million on sales volumes of 506 MBoe and an average realized sales price received of $29.54 per Boe.

Previous wording

Production expenses decreased $11.4 million for the six months ended June 30, 2026 to $73.8 million from $85.2 million for the same period in the prior year. The decrease in production expenses was primarily driven by lower expenses in Gabon and Cote d’Ivoire mainly due to the change in oil inventory adjustments. Our production expenses also decreased as a result of the Canada Assets Divestment. In addition, we incurred non-recurring costs during the same period in the prior year mainly due to government audit settlements. On a per barrel basis, production expense, excluding workover expense and stock compensation expense, for the six months ended June 30, 2026 increased to $27.18 per barrel from $24.43 per barrel for the six months ended June 30, 2025.

Current wording

Production expenses increased $3.7 million for the nine months ended September 30, 2026 to $118.8 million from $115.1 million for the same period in the prior year. The increase in production expenses was primarily driven by higher chemical costs and fuel costs, partially offset by the change in oil inventory adjustments and decreased expenses as a result of the Canada Assets Divestment. In addition, we incurred non-recurring costs during the same period in the prior year mainly due to government audit settlements. On a per barrel basis, production expense, excluding workover expense and stock compensation expense, for the nine months ended September 30, 2026 increased to $26.91 per barrel from $24.63 per barrel for the nine months ended September 30, 2025.