VAALCO has commenced drilling its development well in the Ebouri field and at its appraisal well (North Ebouri) in the Etame block. These two wells, together with the five other development and exploration wells planned over the coming months, expose VAALCO to over 50 million net barrels, or an 8-fold potential increase to the Company's current 6.2 million barrels of proved reserves.

For the development well in the Ebouri field, the Adriatic 6 came on hire to VAALCO on November 6 and was on location in mid-November. First oil production from this well is expected in January 2009. VAALCO continues to expect production at a rate sufficient to bring the Company's total production to approximately 25,000 barrels per day (bpd). The Company currently produces 20,500 bpd...more...