HOUSTON, Dec. 6, 2013 /PRNewswire/ -- VAALCO Energy, Inc.
(NYSE: EGY) today announced that the Company has received written
confirmation from The Ministry of Petroleum of Angola that the available 40% working interest
in Block 5, offshore Angola, has
been assigned to Sonangol E.P., the National Concessionaire.
The Ministry of Petroleum also confirmed that Sonangol E.P. will
assign the aforementioned participating interest to its exploration
and production affiliate, Sonangol P&P.
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With this confirmation, VAALCO has begun the process of
contacting drilling rig companies to secure a semi-submersible rig
to commence the exploration phase of the pre-salt / post-salt
Kwanza Basin program.
Steve Guidry, CEO, commented, "We
are excited to begin drilling offshore Angola, especially given the recent
significant discoveries made elsewhere in the Kwanza basin in which
Block 5 is located. Having Sonangol as our partner, with
their extensive knowledge of the basin, reaffirms our confidence in
the potential of discovering commercial quantities of hydrocarbons
on our 1.4 million acre concession."
Following the assignment, Sonangol and its affiliates will hold
a 60% working interest in Block 5, comprising a 20% carried working
interest and the newly assigned 40% participatory working
interest. VAALCO, as operator, continues to hold a 40%
operating working interest in Block 5.
Forward-Looking Statements
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, future drilling plans, 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, general
economic conditions, oil and gas price volatility, the Company's
success in discovering, developing and producing reserves,
lack of availability of goods, services and capital, environmental
risks, drilling risks, foreign operational risks, and regulatory
changes. These and other risks are further described in
VAALCO's annual report on Form 10-K for the year ended December 31, 2012, its Form 10-Q for the third
quarter filed on November 7, 2013,
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.
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. 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.
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 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, Angola
and Equatorial Guinea in
West Africa.
SOURCE VAALCO Energy, Inc.