VAALCO Energy Inc., Houston, (NYSE: EGY) has reported first production from its successful exploration well drilled in Hemphill County, Texas in the Granite Wash formation.

The Hefley 90-01H well was drilled during June and July 2011 with fracturing operations completed earlier this month. Initial production rates during the flowback period were 11 MMcfpd and 175 barrels of condensate per day.

"We are excited to report the success of our first well drilled in our recently acquired shale play portfolio," says Robert Gerry, chairman and CEO. "Initial production rates are in-line with our expectations and we have staked out a site for the second well to be drilled on the lease. In addition, VAALCO is developing plans for drilling additional wells on the Granite Wash formation properties in Texas as well as the Bakken formation properties in Montana."