VAALCO Offshore Gabon Oilfield Development Project

completed

 The project involves the development of the Etame field in the Etame Marin block, 45 km offshore of the southern coast of Gabon, by VAALCO Energy, a publicly traded oil company based in Houston. VAALCO estimates proved reserves of 40.5 million barrels and proved and probable reserves of 65 million barrels. VAALCO has also identified two other fields within the block (North and South Tchibala) with attractive reservoir properties and has indicated an interest in pursuing a potential second phase of the project. The project will involve the completion of the four existing wells, the drilling and testing of two additional wells and the installation of subsea wellheads at a cost of $65 million. The first three wells will be completed during 3rd quarter 2002 with the remaining wells completed in 2003. VAALCO will also lease a floating production, storage and offloading vessel (FPSO) with a capacity of 30,000 bbl/d. The total project costs, including $33 million of prior capital investment, amount to $98 million. IFC is contemplating lending up to $18 million, comprising an A and B Loan of $9 million each, to fund VAALCO’s contribution to future costs.