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VAALCO Energy, Inc. Announces Successful Completion of Etame-6H Well

Source: www.gulfoilandgas.com 8/3/2005, Location: Africa

VAALCO Energy, Inc., announced that the Company has successfully completed the Etame-6H well and tied the well into the Floating Production, Storage and Offloading vessel offshore southern Gabon. The well is producing at a rate of 6,100 BOPD on a one inch choke from the Gamba formation. The well was drilled horizontally through the upper portion of the Gamba sandstone for a distance of approximately 1500 feet and completed with a gravel-packed liner.

The ET-6H well is completed at the highest point in the reservoir of any well completed at Etame. Robert Gerry, Chairman and CEO, stated, “With the completion of the Etame-6H well, we increased our proved developed reserves by approximately two and one half million net barrels. At the current choke setting, the well brings total field production to approximately 24,000 barrels of oil a day. Over the next few days, we will evaluate the effect of the ET-6H well on the existing wells before making any further adjustments to field production rate.

”Our next project is the development of the Avouma/South Tchibala discoveries south of the Etame field. We have commenced construction of the platform for this development and are planning for installation of the platform during the second quarter of next year. The development will be a two well project, anticipated to add production of approximately 10,000 barrels oil per day.

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