Exhibit 10.4

ADDENDUM N°3

TO THE

“ETAME MARIN N°G4-160”

EXPLORATION

AND

PRODUCTION SHARING

CONTRAT

ADDENDUM N°3

TO THE “ETAME N°G4-160”

EXPLORATION AND PRODUCTION SHARING CONTRACT

BETWEEN

THE GABONESE STATE, represented by Mister Julien NKOGHE BEKALE, Minister of the state, Minister for Mines, Oil, and Hydrocarbons,

On one hand,

AND

VAALCO GABON (ETAME) Inc., a company created according to the law in force in the state of Delaware in United States of America, having their headquarter in Houston, Texas, 77027, United States of America, 4600 Post Oak Place, Suite 309, represented by Mister Russell SCHEIRMAN, President having full authority on the above,

On the other hand,

The Gabonese State and Vaalco Gabon (Etame),Inc. are collectively or individually hereafter named “Parties” or “Party”.

HAVING BEFOREHAND STATED THAT:

THE FOLLOWING HAS BEEN DECIDED AND AGREED:

Article 2 of the Addendum n°2 to the Exploration and Production Sharing Contract «Etame Marin n°G4-160» (CEPP) is modified and from now on read as follows:

If the contractor, during the fifth (5th) period, extended if necessary, pursuant to the Article 1 of the Addendum n°2, satisfied his obligations, resulting from the Contract, particularly on the work engagements defined in Article 5 of the aforementioned Addendum, the Exclusive Authorization of Exploration is, at his request, renewed for a sixth (6th) Contractual period of three (3) Years throughout the entire Delimited Zone.

The sixth (6th) period can, also, be extended for three (3) months maximum for the same reasons and under the same conditions as those indicated in Article 1st of the Addendum n°2.

The contractor must present his request for renewal of the sixth (6th) period at least thirty (30) days before the expiry of the fifth (5th).

If the contractor has been granted the extension envisaged in the Article 1 of the Addendum n°2, the thirty (30) days period referred to above is accountable as from the end of this extension, in order to allow him examine and evaluate the work’s results and to judge if there is necessity in having to present a request for renewal.

The renewal is granted by Decree of the Minister in charge of Hydrocarbons.

During the sixth (6^th) exploration period defined in the Article 1st above, the contractor must complete at least the work hereafter:

To carry out this work Program under the best technical conditions, generally allowed in the international industry of hydrocarbons, the contractor will invest up to ten million five hundred and thousand US dollars ($ 10, 500,000).

Article 21 of the «ETAME MARIN n°G4-160» CEPP is supplemented and from now on read as follows:

22.3 [new]

The contractor must contribute to funds intended for the development of the local communities.

This contribution is raised to an amount of two hundred and fifty thousand US dollars (US $ 250,000) per calendar year.

The contribution to funds for the development of local communities is included into the Costs Oil’s account.

All the other provisions of the «ETAME MARIN n°G4-160» CEPP not modified in accordance with the Articles of this Addendum remain unchanged and continue to produce all their effects.

This Addendum to the «ETAME MARIN n°G4-160» CEPP will come into effect as from its date of signature by the Parties