Vanoil Energy Ltd. VEL
1/25/2013 1:03:49 PM

 

Vanoil Receives Work Program Extension

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 25, 2013) - Vanoil Energy Ltd. ("Vanoil" or the "Company") (TSX VENTURE:VEL) is pleased to announce that the Kenyan Ministry of Energy has extended the deadlines within which Vanoil must satisfy the work program obligations defined in its Production Sharing Contract ("PSC").

Previously, Vanoil was obligated to finish drilling its first well by April 30, 2013. Now, under the terms of the latest extension, Vanoil must only commence drilling its first well before July 31, 2013 and, with sufficient technical justification, Vanoil may place its first two wells anywhere within the boundaries of Block 3A and 3B to satisfy the work program obligations within the Initial Exploration Period of its PSC.

Aaron D'Este, the Company's President and CEO stated; "We were very pleased to secure this key extension. Vanoil is the first company to complete 3D seismic onshore in Kenya and our exploration program is among the most robust ever completed in country. The time extension granted to Vanoil allows us to fully realise value from our 3D data and to drill our first two wells in rapid succession. The ability to place both wells anywhere within the boundaries of 3A and 3B also gives Vanoil the flexibility to target its most exciting prospects. We view 2013 as a transformational year for the Company and we now have the time and operational flexibility to extract maximum value from our assets."

About Vanoil Energy Ltd.

Based in Vancouver, Canada, Vanoil is an internationally diversified energy company with a portfolio of oil and gas assets in the African countries of Kenya and Rwanda. In Kenya, Blocks 3A and 3B were acquired in October 2007 through the signing of a Production Sharing Contract with the Government of the Republic of Kenya. Blocks 3A and 3B, which cover 24,912 square kilometers, potentially contain prospective resources in excess of 900 million boe, positioned between Tullow's recent oil discovery and Apache's offshore gas well. Vanoil's 1,631 square kilometers of oil and gas exclusive licence in the East Kivu Graben in Rwanda is at the southern extension of the Albertine Graben where Heritage and Tullow Oil made their historic discovery in neighbouring Uganda.

On behalf of the Board of VANOIL ENERGY LTD.

Aaron D'Este, President and CEO