HOUSTON, Sept. 15, 2016 (GLOBE NEWSWIRE) -- VAALCO Energy, Inc. (NYSE:EGY) today provided an operational update relating to its
activities in Gabon.
As previously disclosed, in late July the primary electrical submersible pump (ESP) failed in the Avouma 2-H
well on the Avouma Platform offshore Gabon in the Etame Marin Permit. Prior to attempting to start the secondary ESP, VAALCO and
the original equipment manufacturer which installed the ESP worked closely to re-design the start-up procedure and adjust the
operating conditions in an effort to prevent another ESP failure. The lower pump was successfully started in August and remained
operational for approximately 10 days. At the time of the secondary ESP failure, the well was producing approximately 1,850
barrels of oil per day (BOPD) gross or 450 BOPD net to the Company. VAALCO has attempted to restart the lower ESP without
success and the well is temporarily shut-in pending a workover.
The Company is in the process of mobilizing a hydraulic workover unit to the Avouma Platform to recover failed
ESPs in the Avouma 2-H well and the South Tchibala 2-H well. Both wells produce from the Avouma platform and both wells have
recently experienced failed ESPs. After removing the ESPs, VAALCO plans to immediately install a replacement ESP in the Avouma 2-H
well and anticipates restoring production from the well by mid fourth quarter of this year. The failed ESPs will be sent to
the manufacturer’s facilities for a root cause investigation to determine the failure mechanism. Once the cause of the ESP
failures is understood, appropriately modified ESP systems will be installed in the South Tchibala 2-H well and, if necessary, the
Avouma 2-H well.
The Company further commented that its Gabon operations have thus far not been impacted in any way by recent
activities in the country associated with the presidential election last month. The results of the election are being
reviewed by the authorities in Gabon as required in their constitutional process. An announcement of the final result is
expected later in September. VAALCO continues to follow its election period protocol until the results are
finalized.
About VAALCO
VAALCO Energy, Inc. is a Houston-based independent energy company principally engaged in the acquisition,
exploration, development and production of crude oil. The Company's properties and exploration acreage are located primarily in
Gabon, Equatorial Guinea and Angola in West Africa.
This news release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act
of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are those concerning VAALCO's plans,
expectations, and objectives for, future drilling, completion, workover and other operations and activities. All statements, other
than statements of historical facts, included in this release 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 may include expectations
regarding well performance, the ability to successfully workover wells, the costs and timing of expected workovers and statements
regarding the potential for civil unrest in the countries where we operate. 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, oil and gas price volatility, inflation,
general economic conditions, 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, 2015, subsequent quarterly reports on Form 10-Q, and other reports filed with the SEC. 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.
Investor Contact Al Petrie Investor Relations Coordinator 713-543-3422