The NYSE approval is contingent upon the Company being in compliance with all applicable listing standards on the date it begins trading on the NYSE, and may be rescinded if the Company is not in compliance with such standards. The Company believes it is in compliance as of the date of this release.
"We are excited to join the ranks of some of the world's best known companies," stated Robert Gerry, Chairman and CEO of the Company. "We anticipate that the listing will increase our visibility and investor base due to the high standards and globalization of the New York Stock Exchange."
VAALCO operates the Etame Block offshore Gabon, West Africa, where it has sold 23.9 million gross bbls (5.7 million net bbls) from the Etame field since startup. The Company made two discoveries on the Etame block in 2004 (the Ebouri and Avouma discoveries). The Company recently set a platform to develop the Avouma discovery, and commenced drilling operations for two development wells on the platform last week. Last month the Company received approval from the Gabonese government for the development plan for the Ebouri discovery, with plans to construct and set a platform to develop Ebouri in late 2007.
The Company also has exploration rights onshore Gabon via a five year production sharing contract over the 270,000 acre Mutamba Iroru block.
In September 2006, the Company received approval from the Angolan cabinet of its award by Sonangol, the National Oil Company of the Republic of Angola, of a 40% participating interest in Block 5, an oil exploration concession located in the Kwanza basin in the northern waters offshore Angola. The four year primary term of the contract awards the Company exploration rights to 1.4 million acres, with 95% of the block having a water depth of less than 200 meters. The Company is the designated operator of the concession and during the initial term will acquire 1,000 square kilometers and drill two exploration wells. A second three year term is available for a commitment to acquire additional seismic within the block and the drilling of two additional exploration wells.
Additionally, since the beginning of the year the Company's consultant in England has been studying blocks in the North Sea that are currently available or will soon become available for acquisition. The Company has applied to the government for blocks in the 24th licensing round held last June. The winners of blocks are expected to be announced later in October.
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