VAALCO Drills Duster Offshore Gabon VAALCO Energy

VAALCO Drills Duster Offshore Gabon
VAALCO Energy, Inc. 5/23/2005
VAALCO Energy has reached total depth on the EAVSM-1 exploration well offshore Gabon and that logs revealed that no hydrocarbons were encountered in the objective sands. After completing the logging operations to gather data on the well, the well will be plugged and abandoned. The GSF Aleutian Key is expected to move later this week to commence the drilling of the Etame 6H development well to increase production at the Etame field.

Separately, VAALCO announced that it has issued a letter of intent to Gulf Island, LLC of Houma, Louisiana to build the platform to develop the Avouma field. The bid award is subject to execution of a definitive contract expected to occur shortly. Construction will begin immediately thereafter at their yard.

Mr. Robert Gerry, Chairman and CEO of VAALCO stated "while the lack of a discovery on the South Avouma wildcat prospect is disappointing, it does not detract from our overall plan to increase production at the Etame field with the ET-6H development well, and to move forward with plans to develop the Avouma field in 2006. Upon receipt of the processed 3-D seismic over the Ebouri prospect this fall, we expect to prepare and submit to the government of Gabon a development plan for that discovery as well. We will also be looking at other exploration prospects to drill in the near future."