The financial terms of the transaction were not disclosed, as Vaalco is reviewing additional opportunities in the area.
The partners are currently discussing operatorship of the acreage.
A well is expected to be drilled in the fourth quarter of 2011 at a net cost to VAALCO of approximately $3.5m.
Vaalco chairman and CEO Robert Gerry, said the acquisition is expected to be productive and generate significant reserves and cash flow to the company.
"We believe there could be 100 million barrels of original oil in place associated with this acreage and with a recovery factor of between 5% – 10% it is an exciting undertaking for us," Gerry said.
Vaalco is principally engaged in the acquisition, exploration and production of crude oil, and its properties and exploration acreage are located primarily in Gabon and Angola, West Africa and the US.
