VAALCO Energy: Year-Over-Year Expansion Expected in Production

Robert L. Gerry, III, VAALCO Energy chairman and CEO, noted that the 2008 production outlook is for continued year-over-year expansion. "In 2007, we substantially increased production from our Etame properties offshore Gabon to approximately 22,500 gross barrels per day, while accelerating our exploration activities.

"Production from our South Tchibala and Avouma fields at Etame began in January 2007 and accelerated during the fourth quarter following the start of upgrades to our contracted FPSO. The platform for the Ebouri field is expected to be installed this summer, with first production by year-end. With Ebouri production, year-over-year production increases at Etame should continue through 2009."