VAALCO Completes Second Well Offshore Gabon

VAALCO Energy, Inc. announced the successful completion of the ET-4H well offshore Gabon, West Africa.

The well flowed at a daily rate in excess of 9,800 barrels on a 48/64" choke. Surface flowing tubing pressure was 629 psi. Flow rates were restricted by the available test equipment on the drilling rig.

Robert L. Gerry, III, Chairman and CEO commented "This is the second successful completion in our three well program and confirms that we have a world class reservoir. We will now move the "Sedneth 701" drilling rig to the ET-1VA well location, the third and final well to be completed in Phase I of the Etame Development Project.

The wells are being horizontally completed subsea in the Gamba sandstone at a vertical depth of approximately 6000' in 250' of water.

The offshore storage vessel, "Petroleo Nautipa", is scheduled to depart Singapore on July 26 after being retrofitted for storage of the Etame Field crude oil. The vessel is expected to be on location in the Etame Field during the third week of August. We remain optimistic for producing first oil from the Etame Field during the first week of September."

Partners in the Etame Marine Permit are: VAALCO Gabon (Etame), Inc. (Operator); PanAfrican Energy Corp. Ltd.; Sasol Petroleum International (Pty) Ltd.; PetroEnergy Resources Corp.; Nissho Iwai Corporation.