Vaalco once again asks for shareholder support in its proxy contest with Nanes Delorme

By Lisa Kerner

Charlotte, N.C., May 15 - Vaalco Energy, Inc. sent another letter to its stockholders seeking support for its slate of director nominees at the company's annual meeting on June 4.

The company sent a similar letter on May 8 urging stockholders to vote for:

• W. Russell Scheirman, Vaalco president and chief financial officer;

• Arne R. Nielsen, former president of Mobil Oil Canada; and

• William S. Farish, Vaalco director and former ambassador to Great Britain.

Vaalco is locked in a proxy battle with New York-based hedge fund Nanes Delorme Partners I LP.

It was previously reported that Nanes Delorme has partnered with Pilatus Energy SA, an oil and gas company with headquarters in Zug, Switzerland.

Robert L. Gerry III, Vaalco's chairman and chief executive officer, expressed concern that Nanes Delorme and Pilatus Energy's "short-term, self-serving agenda would threaten the company and our record of value creation."

In the latest letter, Gerry highlighted Vaalco's "superior stock price performance," strong financial performance and exploration program as proof that Vaalco's board and management are successfully executing on the company's strategy.

Gerry said public records make clear that Nanes Delorme and Pilatus "are conflicted and their ethics tainted by a scandal involving corruption, kickbacks, fraud and embezzlement."

The CEO cautioned shareholders in his previous letter that Nanes Delorme has a history of brokering the sale of oil and gas assets. In addition, the investor has said its nominees would seek to begin a sale of Vaalco, Gerry said.

According to Gerry, Nanes Delorme only recently purchased its Vaalco shares, with the majority of them purchased by Pilatus, whose head was convicted and sentenced by a French court for fraud, embezzlement, bribery and kickbacks.

Vaalco Energy is a Houston-based independent energy company.

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