VAALCO Energy, Inc. 

 

3^rd Quarter 2007 Results

HOUSTON - (PR Newswire) - November 9, 2007 - VAALCO Energy, Inc. (EGY - NYSE),

For the nine months ended September 30, 2007, the Company earned $17.1 million, or $0.28 per diluted share, compared to $35.1 million or $0.58 per diluted share in the nine months ended September 30, 2006.

Crude oil sales for the nine months ended September 30, 2007 were 1,334,000 barrels of oil equivalent at an average price of $66.05 per barrels compared to 1,278,000 barrels of oil equivalent at an average $64.54 per barrel of oil equivalent for the nine months ended September 30, 2006.

We will spud our well in the North Sea within a few days and should reach total depth by mid-December. Our scientists continue to evaluate seismic data from Gabon and Angola to locate drillable prospects for the second half of 2008. Current production from the Etame concession is now approximately 21,000 barrels of oil per day as we begin to ramp up production as a result of our new FPSO contract.”

 

 

(Unaudited - in thousands of dollars)			Three Months Ended Sept. 30,						Nine Months Ended Sept. 30,
			2007			2006			2007			2006
Revenues			34,828			25,640			88,087			82,452
Operating costs and expenses			11,071			5,352			36,841			17,009
Operating Income (Loss)			23,757			20,288			51,246			65,443
Other Income (Expense)			992			649			2,132			1,243
Income tax expense			(14,747	)		(6,280	)		(33,268	)		(27,077	)
Gain (loss) from discontinued operations			--			488			(51	)		(241	)
Minority Interest in earnings of subsidiaries			(1,206	)		(1,555	)		(2,991	)		(4,314	)
Net Income			8,796			13,590			17,068			35,054
Basic Income per Common Share		$	0.15		$	0.23		$	0.29		$	0.61
Diluted Income per Common Share		$	0.15		$	0.22		$	0.28		$	0.58

Item		Three months ended						Nine months ended
		Sept. 30, 2007			Sept. 30, 2006			Sept. 30, 2007			Sept. 30, 2006
Basic weighted average common stock issued and outstanding			59,191,555			58,403,727			59,118,995			57,905,161
Dilutive options			889,957			2,381,936			1,156,223			2,446,493
Total diluted shares			60,081,511			60,785,663			60,275,218			60,351,654

This press release includes “forward-looking statements” as defined by the U.S. securities laws. Forward-looking statements are those concerning VAALCO’s plans, expectations, and objectives for future drilling, completion and other operations and activities. All statements included in this press release that address activities, events or developments that VAALCO expects, believes or anticipates will or may occur in the future are forward-looking statements. These statements include future production rates, completion and production timetables and costs to complete well. These statements are based on assumptions made by VAALCO based on its experience perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond VAALCO’s control. These risks include, but are not limited to, inflation, lack of availability goods, services and capital, environmental risks, drilling risks, foreign operational risks and regulatory changes. Investors are cautioned that forward-looking statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements. These risks are further described in VAALCO’s annual report on form 10K/A for the year ended December 31, 2006 and other reports filed with the SEC which can be reviewed at www.sec.gov, or which can be received by contacting VAALCO at 4600 Post Oak Place, Suite 309, Houston, Texas 77027, (713) 623-0801.