Vaalco Energy Inc. provided the following update on its recent activities. In December 2013, VAALCO spudded an exploration well in the Dimba prospect, located approximately seven miles northeast of the Etame field offshore Gabon. The exploration well is being drilled by the contracted rig, the KCA Deutag 'Ben Rinnes' in approximately 175 feet of water and is intended to evaluate both the Gamba and deeper syn-rift formations.

In addition, the rig will be used to redrill the S. Tchibala 1-H well, which experienced a casing failure in early 2013, and to perform a workover of the Avouma 2-H well to replace a failed submersible pump assembly. Construction work on the two production platforms for the additional development of the Etame Marin block is continuing on schedule, with one platform expected to be installed in the Etame field and the second platform to be installed between the Southeast Etame and North Tchibala fields in the second half of 2014. In March 2014, a six-day shutdown of the Etame Marin block has been scheduled to upgrade the safety systems and perform general maintenance and repairs on VAALCO's leased Floating, Production, Storage and Offloading (FPSO) vessel.

Other maintenance will be performed in the field to take advantage of the FPSO outage. In addition, VAALCO confirmed that it successfully completed an end of year lifting, bringing its total fourth quarter 2013 crude sale liftings to four. On a gross basis, liftings from the FPSO in the Etame Marin block offshore Gabon totaled approximately 2.2 million barrels in the fourth quarter of 2013, as compared to approximately 2.0 million barrels in the fourth quarter of 2012.

Liftings in the third quarter of 2013 were approximately 1.4 million barrels on a gross basis.