The Board of Directors of VAALCO Energy notes the recent media speculation in Africa Intelligence and confirms that the Company is in discussions with the owner of Svenska Petroleum Exploration regarding a possible debt-free corporate transaction to acquire Svenska whose primary asset is a 27.39% interest in Block CI-40, offshore Cote d’Ivoire, which has current working interest production of approximately 4,500 barrels of oil equivalent per day net to Svenska.

Should the possible acquisition proceed, it is expected to be funded by cash on hand. The possible acquisition is also expected to be subject to a number of customary closing conditions, including regulatory and government approvals.

There can be no assurance that a definitive agreement for the possible acquisition will be entered into or, if a definitive agreement is entered into, that the possible acquisition will proceed to completion, and the Company will issue a further statement as appropriate.

KeyFacts Energy: Svenska Cote d'Ivoire country profile