Cape Town (Platts)--1Aug2008

Houston-based Vaalco Friday said it has completed the installation of the
production platform at its Ebouri field offshore Gabon with first oil
production expected in December 2008 at an initial rate of 4,000 to 6,000 b/d.

The platform has been tied back via pipeline to the floating production,
storage and offloading facility that also serves Vaalco's Etame and Avouma/
Tchibala fields.

The company also announced that the jack-up drilling rig Pride Cabinda
is expected to be on location by late September/early October to drill three
exploratory wells on the Etame concession.

These exploratory wells include an appraisal well (North Ebouri) for
possible expansion of the Ebouri development project and two additional wells
(North Etame and South East Etame) on newly mapped structures.

The wells will be drilled back-to-back and have combined gross reserve
potential additions in excess of 60 million barrels.

Onshore Gabon, Vaalco said it hopes to commence drilling the first of
two exploratory wells in December on its wholly owned Mutamba concession.

Combined potential reserves for these wells are expected to be in excess
of 30 million barrels.

"We are making good progress in bringing production online and exploring
new opportunities for growth," said chairman and CEO Robert L. Gerry III.

Vaalco also said that the buyer of its crude oil has nominated around
675,000 barrels to be lifted for the end of the first week of August from the
company's FPSO.