Published on December 1, 2009
VAALCO
Energy Extends Etame Exploration Permit To 2014
[01-December-2009]
HOUSTON,
Dec. 1 /PRNewswire-FirstCall/ -- VAALCO Energy, Inc. (NYSE: EGY) today announced
that it has successfully negotiated an extension to its Etame Marin Exploration
Permit in Gabon. Under the extension, VAALCO maintains a 30.35% interest in the
operating and exploration rights to approximately 759,000 acres offshore Gabon
surrounding the Etame field to July 2014, three years beyond the original
expiration date of July 2011.
Robert
Gerry, Chairman and CEO, stated, "As demonstrated by the exploration and
development wells we plan to drill in the coming year, we believe the Etame
Marin block offers a number of potential opportunities to add to production and
reserves. This extension will ensure we have ample time to fully evaluate
additional leads and prospects on the Etame Permit that we have
identified."
In
exchange for the extended permit, VAALCO and its partners paid $4.5 million to
the Republic of Gabon, $1.35 million of which was paid by VAALCO. The partners
also agreed to a drill an additional exploration well, bringing the total
required under the permit to two exploration wells, and to acquire additional
3-D seismic data, which is expected to be acquired in 2010.
VAALCO
operates and owns its 30.35% interest in the Etame Exploration Permit through
its subsidiary VAALCO Gabon Etame, Inc. Other partners are ADDAX Petroleum
Etame, Inc. (33.9%), Sasol Petroleum Etame Limited (30.0%), Sojitz Etame Limited
(3.23%), and PetroEnergy Resources Corp. (2.52%).
Forward-Looking
Statements
This
document 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 document 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, reserve opportunities, drilling, completion and
production timetables and costs to complete wells. 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, volatility of oil
and natural gas prices, future production costs, future production quantities,
the ability to replace reserves, inflation, lack of availability of drilling and
other equipment, availability of services and capital, environmental risks,
drilling risks, general economic 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 10-K for the year
ended December 31, 2008 and other reports filed with the SEC which can be
reviewed at http://www.sec.gov, or which can be received by contacting VAALCO at
4600 Post Oak Place, Suite 309, Houston, Texas 77027, (713)
623-0801.
About
VAALCO
VAALCO
Energy, Inc. is a Houston based independent energy company principally engaged
in the acquisition, exploration, development and production of crude oil.
VAALCO's strategy is to increase reserves and production through the exploration
and exploitation of oil and natural gas properties with high emphasis on
international opportunities. The Company's properties and exploration acreage
are located primarily in Gabon and Angola, West Africa.
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Joele
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713-623-0801
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212-355-4449
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