August 1, 2008
VAALCO Energy Updates Progress on Drilling and Exploration Program
HOUSTON, Aug. 1 /PRNewswire-FirstCall/ -- VAALCO Energy, Inc. today provided an update on the Company's drilling and exploration program.
VAALCO announced that it has completed the installation of the production platform at its Ebouri field in offshore Gabon, West Africa. The platform has been tied back via pipeline to the Floating Production, Storage and Offloading (FPSO) facility that also serves VAALCO's Etame and Avouma / Tchibala fields. With the installation of the platform complete and the pipeline successfully tested, VAALCO confirmed that it remains on schedule to commence drilling the Ebouri development well, with oil production expected in December 2008 at an initial rate of 4,000 to 6,000 barrels per day, as previously announced.
The Company also announced that the jack-up drilling rig, Pride Cabinda, is expected to be on location by late September/early October to drill three exploratory wells on the Etame concession. These exploratory wells include an appraisal well (North Ebouri) for possible expansion of the Ebouri development project and two additional wells (North Etame and South East Etame) on newly mapped structures. The wells will be drilled back to back and have combined gross reserve potential additions in excess of 60 million barrels.
Onshore Gabon, VAALCO remains on schedule to commence drilling the first of two exploratory wells in December on VAALCO's wholly owned Mutamba concession. Combined potential reserves for these wells are expected to be in excess of 30 million barrels.
"We are making good progress in bringing production online and exploring new opportunities for growth," said Robert L. Gerry, III, Chairman and CEO. "With our platform installed and connected to our FPSO on time and on budget, we now have key infrastructure in place to begin new production at Ebouri as planned. The work underway in our Ebouri and Etame fields, together with additional exploratory wells in Angola and the North Sea, offers the prospect of significantly increasing shareholder value through the addition of new reserves."
VAALCO also announced that the buyer of its crude oil has nominated approximately 675,000 barrels to be lifted for the end of the first week of August from the Company's FPSO.
This document includes "forward-looking statements" as defined by the U.S. securities laws. Forward-looking statements are those concerning VAALCO's plans, expectations, and objectives for future drilling, completion and other operations and activities. All statements included in this document that address activities, events or developments that VAALCO expects, believes or anticipates will or may occur in the future are forward-looking statements. These statements include future production rates, completion and production timetables and costs to complete well. These statements are based on assumptions made by VAALCO based on its experience perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond VAALCO's control. These risks include, but are not limited to, inflation, lack of availability of goods, services and capital, environmental risks, drilling risks, foreign operational risks and regulatory changes. Investors are cautioned that forward-looking statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements. These risks are further described in VAALCO's annual report on Form 10-K for the year ended December 31, 2007 and other reports filed with the SEC which can be reviewed at http://www.sec.gov/, or which can be received by contacting VAALCO at 4600 Post Oak Place, Suite 309, Houston, Texas 77027, (713) 623-0801.
VAALCO Energy, Inc. is a Houston based independent energy company principally engaged in the acquisition, exploration, development and production of crude oil. VAALCO's strategy is to increase reserves and production through the exploration of oil and natural gas properties with high emphasis on international opportunities. The Company's properties and exploration acreage are located primarily in Gabon and Angola, West Africa.
Investor Contact W. Russell Scheirman 713-623-0801 Media Contact Barrett Golden / Tim Lynch Joele Frank, Wilkinson Brimmer Katcher 212-355-4449
VAALCO Energy, Inc.
CONTACT: Investor Contact: W. Russell Scheirman, +1-713-623-0801; orMedia Contact: Barrett Golden or Tim Lynch, both of Joele Frank, WilkinsonBrimmer Katcher, +1-212-355-4449