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VAALCO Energy, Inc. Well Update

Source: www.gulfoilandgas.com 7/18/2004, Location: Africa

VAALCO Energy, Inc. announced that the Etame Field offshore Gabon has been restored to full production. Two wells, ET-3H and ET-1VA, had been temporarily shut in due to a sudden and unexplained loss of hydraulic pressure to down hole safety valves (“SSSV”). Subsea inspections conducted with a remote operated vehicle (ROV) confirmed earlier views that hydraulic lines had indeed been ruptured between the FPSO and the sub-sea wellheads causing the loss of hydraulic pressure which in turn triggered the SSSV shut in. Following the repairs, production at Etame has been restored to its prior level of approximately 15,000 barrels per day (4,210 bopd net to VAALCO).

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%) , PetroEnergy Resources Corp. (2.34%) and Energy Africa Gabon (7.5%).

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