Vaalco settles proxy battle with Nanes Delorme Partners

By Lisa Kerner

Charlotte, N.C., May 27 - Vaalco Energy, Inc. said it entered into an agreement to settle its proxy battle with Nanes Delorme Partners I LP, an 8% shareholder.

In addition, Vaalco agreed to dismiss its lawsuit against Nanes Delorme Partners, a Vaalco news release stated.

Nanes Delorme Partners, a New York-based hedge fund, agreed to stop soliciting proxies in connection with Vaalco's 2008 annual meeting, to vote its shares in support of all of Vaalco's director nominees and to abide by certain standstill provisions for a three-year period.

Under the agreement, Vaalco committed to certain governance provisions and to separate the roles of president and chief financial officer.

W. Russell Scheirman will continue to be Vaalco's president as the company searches for a new CFO, the release said.

Vaalco's board of directors will recommend the declassification of the board and to hold annual elections in 2010. The board will also add a new, independent director and expand the board to eight directors.

A stockholder rights plan will be submitted for ratification at Vaalco's 2009 annual meeting.

It was previously reported that Vaalco's independent proxy advisory firm, Glass Lewis & Co., recommended stockholders vote on the company's white proxy card and refrain from voting for any of Nanes Delorme Partners and Pilatus Energy SA's director nominees at the June 4 annual meeting.

Vaalco Energy is a Houston-based independent energy company.

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