VAALCO ENERGY, INC. 

REPORT ON PAYMENTS TO GOVERNMENTS FOR THE YEAR 2021

HOUSTON - June 20, 2022 - The following report provides an overview of payments made to governments by VAALCO Energy, Inc. and its affiliated companies for the year ending December 31, 2021 as required under the UK Reports on Payments to Government Regulations 2014 and its amendment in December 2015 and DTR 4.3A of the Financial Conduct Authority's Disclosure and Transparency Rules (the "UK Regulations"). 

Payments to Governments^[1],[2]

[1] Payments are reported in US Dollars.  Actual payments made in currencies other than US Dollars have been converted.

[2] Pursuant to the UK Regulations, payments or a series of payments that do not exceed £86,000 (US$ 117,962) have not been reported. 

[3] All Gabon figures are associated with VAALCO Gabon SA's interest in the Etame Marin block offshore Gabon. 

[4] All United States figures are associated with VAALCO Energy, Inc.'s headquarters. 

[5] All United Kingdom figures are associated with VAALCO Energy, Inc's UK corporate activities

[6] Represents crude oil barrels provided to the Gabon Oil Company in-kind, in lieu of income tax.

[7] Dollar value calculated using VAALCO Gabon SA's sales price under the terms of its crude oil sales agreement with a third party. 

[8] Paid to the Public Treasury in cash for the benefit of the Ministry of Hydrocarbons and Mining. 

[9] Dollar value calculated using VAALCO Gabon SA's sales price which is based on a sales price under the terms of its crude oil sales agreement with a third party. 

[10] Consists of both employer and employee share of various payroll and social security taxes paid to the Public Treasury. 

[11] Consists of both the employer and employee shares of various payroll and social security taxes paid to the Federal and State treasuries. 

[12] Consists of both employer and employee share of various payroll and social security taxes paid to the Public Treasury.   

[13] Payments consist of the Domestic Market Obligation paid in cash to the Public Treasury.

About VAALCO

VAALCO, founded in 1985, is a Houston, USA based, independent energy company with production, development and exploration assets in the West African region.

The Company is an established operator within the region, holding a 63.6% participating interest in the Etame Marin block, located offshore Gabon, which to date has produced over 126 million barrels of crude oil and of which the Company is the operator.

For Further Information

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.  All statements, other than statements of historical facts, included in this document that address activities, events, plans, expectations, objectives or developments that VAALCO expects, believes or anticipates will or may occur in the future are forward-looking statements.  These statements may include statements related to the impact of the COVID-19 pandemic, including the recent sharp decline in the global demand for and resulting global oversupply of crude oil and the resulting steep decline in oil prices, production quotas imposed by Gabon, disruptions in global supply chains, quarantines of our workforce or workforce reductions and other matters related to the pandemic, well results, wells anticipated to be drilled and placed on production, future levels of drilling and operational activity and associated expectations, the implementation of the Company's business plans and strategy, prospect evaluations, prospective resources and reserve growth, its activities in Equatorial Guinea, expected sources of and potential difficulties in obtaining future capital funding and future liquidity, its ability to restore production in non-producing wells, our ability to find a replacement for the FPSO or to renew the FPSO charter, future operating losses, future changes in crude oil and natural gas prices, future strategic alternatives, future and pending acquisitions, capital expenditures, future drilling plans, acquisition and interpretation of seismic data and costs thereof, negotiations with governments and third parties, timing of the settlement of Gabon income taxes, and expectations regarding processing facilities, production, sales and financial projections.  These statements are based on assumptions made by VAALCO based on its experience and 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, crude oil and natural gas price volatility, the impact of production quotas imposed by Gabon in response to production cuts agreed to as a member of OPEC, inflation, general economic conditions, the outbreak of COVID-19, the Company's success in discovering, developing and producing reserves, production and sales differences due to timing of liftings, decisions by future lenders, the risks associated with liquidity, lack of availability of goods, services and capital, environmental risks, drilling risks, foreign regulatory and operational risks, and regulatory changes. 

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.

Inside Information

This announcement contains inside information as defined in Regulation (EU) No. 596/2014 on market abuse ("MAR") and is made in accordance with the Company's obligations under article 17 of MAR.