12 Best Oil and Gas Penny Stocks to Invest in Now

9. VAALCO Energy, Inc. (NYSE:EGY)

Number of Hedge Fund Holders: 16

Share Price as of April 16: $3.39

VAALCO Energy (NYSE:EGY) operates as an independent upstream energy company with assets across Africa and Canada. It manages production and exploration in Gabon, Egypt, Equatorial Guinea, Côte d’Ivoire, and Canada. The company’s portfolio features high-interest assets like Gabon’s Etame Marin block and fully operated positions in Egypt’s desert regions. VAALCO is actively growing its presence in key African oil basins through smart development and strategic acquisitions.

In Q4 ending December 31, 2024, VAALCO Energy, Inc. (NYSE:EGY) showed impressive financial results, hitting a record adjusted EBITDA of $303 million for the year, up 8% from last year. Whereas Q4 production averaged 25,300 BOE daily, matching the company’s guidance. VAALCO’s proven reserves jumped 57% to 45 million BOE, while its 2P reserves reached 96.1 million BOE. The company’s acquisition in Côte d’Ivoire has already paid for itself 1.8 times since April 2024. Moreover, VAALCO gave $33 million back to shareholders and finished Q4 with $82.6 million in cash.

Additionally, VAALCO Energy, Inc. (NYSE:EGY) secured a $190 million credit line (expandable to $300 million) to fund its growth plans. The company formalized a 70% interest in CI-705 offshore Côte d’Ivoire and got a 10-year extension on its CI-40 license through 2038. It has also lined up a rig for its 2025-2026 Gabon drilling and completed its FPSO off hire on January 31, 2025, with service expected to resume in May 2026.

Looking ahead to 2025, VAALCO Energy, Inc. (NYSE:EGY) expects production between 19,250 BOE and 22,210 BOE daily. It has set aside $270-$330 million for capital expenses, with $70-$90 million planned for Q1. The company aims to drill two wells in Gabon and up to 13 in Egypt. It also plans to complete studies for the Venus development in Equatorial Guinea and might reach FID this year, making it one of the best penny stocks in the oil and gas sector.