VAALCO Energy to Begin Upgrade of Gabon Production Facility

HOUSTON, June 6 /PRNewswire-FirstCall/ -- VAALCO Energy, Inc. (NYSE: EGY)
today announced that it will shortly begin a planned upgrade to the Floating
Production, Storage and Offloading (FPSO) facility serving its Etame and
Avouma fields in offshore Gabon, West Africa. The upgrade is intended to
improve the water processing capacity at the facility, which would enable
VAALCO to increase production by 10% to 25,000 barrels of oil per day (bdp) by
year-end. In addition, modifications to the gas flare system will be
undertaken, improving safety and reducing the likelihood of unplanned
downtime.
"This upgrade is part of our efforts to ensure that we are fully
capitalizing on VAALCO's E&P portfolio and driving value for our
shareholders," said Robert L. Gerry, III, Chairman and CEO. "With seven
planned exploration wells in Gabon, Angola and the North Sea, we are entering
a period that will see the highest levels of exploration and development in
VAALCO's history. This program offers exciting opportunities to drive
significant increases in both production and reserves, and represents
compelling future upside for VAALCO and our shareholders."
VAALCO noted that the upgrade to the FPSO facility is expected to commence
June 12 and be completed within seven to ten days during which time production
will be temporarily shut-in. VAALCO expects to more than make up the lost
production as a result of the capacity expansion and does not expect the
shut-in to have a material effect on the Company's revenues or earnings for
the quarter or for the year.
VAALCO said that Shell has nominated 650,000 barrels to be lifted for the
month of June, which will occur prior to commencing the upgrade.
Forward-Looking Statements
This document includes "forward-looking statements" as defined by the U.S.
securities laws. 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 future production rates, completion and production
timetables and costs to complete well. 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, 2007 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 309, Houston, Texas 77027, (713) 623-0801.
About VAALCO
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, West Africa.

Investor Contact Media Contact
W. Russell Scheirman Barrett Golden / Tim Lynch
713-623-0801 Joele Frank, Wilkinson Brimmer Katcher
215-355-4449

SOURCE VAALCO Energy, Inc.

Investor Contact, W. Russell Scheirman, +1-713-623-0801; or Media Contact,
Barrett Golden or Tim Lynch, both of Joele Frank, Wilkinson Brimmer Katcher,
+1-215-355-4449, for VAALCO Energy, Inc.