VAALCO After New Rig for Drilling Offshore Gabon

VAALCO Energy, Inc.  today provided an update on its ongoing multi-well drilling and recompletion program offshore Gabon. An exploration appraisal well drilled and logged to evaluate an untested fault block on the South West flank of the Ebouri field has encountered water in the Gamba reservoir and in the Dentale formation, and will be abandoned.

The Company will shortly commence operations to install new electric submersible pumps (ESPs) on its producing well in the Ebouri field. The contracted rig, the KCA Deutag “Ben Rinnes”, will then be moved onto location north of the Etame field to drill an exploration well on Prospect Ovoka (formerly Mu). The well will be drilled in 60 meters of water to a depth of 2,700 meters to evaluate the Gamba reservoir and the underlying Lucina formation. Studies undertaken by VAALCO and its consortium partners with respect to Prospect Ovoka indicate that potential reserves in excess of 30 million gross barrels of oil are estimated to be recoverable.

As previously announced, the Company successfully completed the first well in the program, the development well (EAVOM-3H) in the Avouma field. The Company has also completed the replacement of the ESPs on two wells on the Avouma platform, the EAVOM-2H well and ETBSM-1H well.

VAALCO and its consortium partners are evaluating the availability of drilling rigs to drill additional exploration wells offshore Gabon once the current multi-well drilling program is completed.