VAALCO Sells 1818 Fund II, L.P. Holdings

VAALCO Energy reports that the 1818 Fund II, L.P. sold 35,898,695 shares of common stock of VAALCO in a series of block trades. The Company trades on the American Stock Exchange. These shares are all of the common stock beneficially owned by the 1818 Fund II, L.P. The shares sold by the 1818 Fund II, L.P. represent approximately 63.9% of VAALCO's outstanding common stock after the trade. Following the settlement of the trades, VAALCO will have outstanding approximately 56.2 million shares of common stock, approximately 5.3 million employee options to purchase shares of common stock, and no shares of preferred stock or warrants to purchase common stock.

VAALCO does not anticipate that any person will own 10% or more of its outstanding common stock following settlement of the sale by the 1818 Fund II, L.P.

In connection with the settlement of the sale by the 1818 Fund II, L.P., Mr. Lawrence Tucker, Mr. T. Michael Long and Mr. Walter Grist will resign from the Board of Directors of VAALCO. The remaining members of VAALCO's Board of Directors intend to appoint their successors who will stand for election at VAALCO's annual shareholders meeting on June 8, 2005. VAALCO does not anticipate any other changes in its Board of Directors and executive management in connection with the sale by the 1818 Fund II, L.P.

A written prospectus relating to the resale of VAALCO's common stock by the 1818 Fund II, L.P. meeting the requirements of Section 10 of the Securities Act of 1933 may be obtained by contacting Gayla M. Cutrer, VAALCO Energy, Inc., 4600 Post Oak Place, Suite 309, Houston, Texas 77027, telephone (713) 623-0801.