VAALCO Signs a Contract for FPSO to increase production offshore gabon

VAALCO Signs a Contract for FPSO to Increase Production Offshore Gabon

10-18-2007

VAALCO Energy, Inc. today announced that it had entered into an agreement with Tinworth Pte. Ltd. regarding the FPSO "Petroleo Nautipa". The FPSO operates within the Etame Marin concession offshore Gabon. The new agreement allows the consortium to increase oil production beyond the current contractual capacity of the FPSO while also extending the contract an additional four years to 2015.

Robert L. Gerry, III, Chairman and CEO of VAALCO Energy, Inc., said "It's a win-win agreement for both parties. The consortium will pay for certain upgrades to the FPSO's water treatment capacity to allow us to gradually increase production primarily from the Avouma / S. Tchibala Fields. While complete installation of the upgrade will not be finished until late 2008 we will begin increasing production in the near term."

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 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.