VAALCO Shuts-in More Production from Etame Marin Field

VAALCO Energy reports that the ET-1VA well in the Etame Marin Field offshore Gabon has been temporarily shut-in due to a malfunction of the hydraulically operated downhole safety valve. The malfunction is similar to the previously announced shut in of the ET-3H well.

The exact nature of the malfunction will not be known until the arrival of the remotely operated vehicle (ROV) on or about July 13, 2003. The occurrence of two such events suggests an external disruption potentially caused the parting of hydraulic lines. Once the malfunction is identified remedial work will immediately be undertaken to restore the wells to production.

The purchaser of the consortium's crude oil successfully lifted approximately 608,000 barrels from the Etame FPSO July 4th and 5th, 2003 for the account of the consortium. The remaining production well in the Etame field, ET-4H, continues to produce approximately 6,400 barrels of oil per day.

VAALCO's subsidiary VAALCO Gabon Etame, Inc. operates and owns a 28.07% interest in the Etame Field. Other field partners are PanAfrican Energy Gabon Corp. (31.36%), Sasol Petroleum West Africa (Ltd.) (27.75%), Energy Resources Japan Etame (Gabon) Limited (2.98%) and PetroEnergy Resources Corp. (2.34%) Energy Africa Gabon (7.5%).