Vaalco Gabon Offshore Oilfield Development Facility

completed

_x000C_VAALCO Gabon (Etame), Inc (VAALCO Gabon or the company), an existing IFC client, has successfully completed its first phase of development of the Etame field in offshore Gabon. The project relates to the next phase of the company’s oil development and exploration/appraisal programs in the Etame Block. These currently include the second phase of the Etame field development; new development of the Avouma and South Tchibala field discoveries and potentially the Ebouri field in the same block; conducting 3D seismic surveys and drilling additional exploration wells. The programs will help sustain oil production from the concession as well as maintain exploration investments that can potentially identify additional reserves. VAALCO holds a 28% production interest and is the operator of the Etame Block. Gross capital costs for the above programs are estimated at $239 mln, about $72 mln net to the company’s share.