VAALCO Energy to Redeem Rights Under Plan

VAALCO Energy's Board has determined to redeem the rights issued under the Company's stockholder rights plan. This follows the Board's previously announced decision to submit the plan for ratification at the Company's 2009 Annual Meeting.

Pursuant to the redemption, all holders of record of VAALCO's common stock at the close of business on July 24, 2009, the record date, will receive a one time cash distribution of $.001 per share, as provided under the plan. The Company expects the payment date to be on or about August 1, 2009. Stockholders do not have to take any action to receive the payment.