HOUSTON, Feb. 14, 2012 /PRNewswire/ — VAALCO Energy, Inc. (NYSE: EGY) today provided an update on the company’s working interest in Block 5 offshore Angola. VAALCO recently received written confirmation from the Angolan national oil company, Sonangol, that the government of Angola has granted a time extension of the production sharing agreement for Block 5 through the end of 2012.
VAALCO is continuing to work with Sonangol both to identify a working interest partner and to explore possible options involving well drilling obligations and the acquisition and reprocessing of additional 3D seismic data to further develop additional pre-salt leads.
VAALCO noted that recent discovery announcements by other operators appear to confirm the presence of prolific, mature, source rocks and thick, high quality pre-salt reservoirs in the Kwanza basin. VAALCO’s Block 5, located in the northern portion of the basin, is situated to trap pre-salt hydrocarbons which may have migrated up-dip from the deeper part of the basin.
This document includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are those concerning VAALCO’s plans, expectations, and objectives for future drilling, completion and other operations and activities. All statements included in this document that address activities, events or developments that VAALCO expects, believes or anticipates will or may occur in the future are forward-looking statements. These statements include expected capital expenditures, prospect evaluations, negotiations with governments and third parties, and reserve growth. These statements are based on assumptions made by VAALCO based on its experience perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond VAALCO’s control. These risks include, but are not limited to, inflation, lack of availability of goods, services and capital, environmental risks, drilling risks, foreign operational risks and regulatory changes. Investors are cautioned that forward-looking statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements. These risks are further described in VAALCO’s annual report on Form 10-K for the year ended December 31, 2010, on Part II, Item 1A of Form 10-Q for the quarter ended March 31, 2011 and other reports filed with the SEC which can be reviewed at http://www.sec.gov, or which can be received by contacting VAALCO at 4600 Post Oak Place, Suite 300, Houston, Texas 77027, (713) 623-0801. VAALCO disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
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 and exploitation 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, West Africa and the United States.
Gregory R. Hullinger
Chief Financial Officer
Tim Lynch / Jed Repko
Joele Frank, Wilkinson Brimmer Katcher
SOURCE VAALCO Energy, Inc.