Vanoil Provides Update on Kenyan Blocks 3A and 3B
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 07/07/14 -- Vanoil
Energy Ltd. (TSX VENTURE: VEL), ("Vanoil" or the "Company") wishes to
update information previously released on February 3, 2014 with
regard to ongoing negotiations with the Kenyan Government with
respect to the extension of Vanoil's Production Sharing Contracts
("PSCs" ) over Block 3A and Block 3B, onshore Kenya. Vanoil has
decided to proceed with a formal demand for arbitration in accordance
with the UNCITRAL arbitration rules adopted by the United Nations
Commission on International Trade Law as per the respective PSCs.
Furthermore, Vanoil has commenced evaluation of all possible legal
remedies the Company may have against the Kenyan Government.
Mr. James Passin, Chairman of Vanoil stated, "Following the discovery
of hydrocarbons with oil shows in the Sala-1 well in the Anza Graben
announced by Africa Oil Corp. (TSX: AOI), Vanoil believes the
economic value of Blocks 3A and 3B may have materially increased.
While we would have preferred to proceed with the two well program
approved by the Ministry of Energy, we are looking forward to
vigorously pursuing all legal remedies".
Vanoil is an oil and gas company with a portfolio of assets in East
Africa and in the Republic of Seychelles, in the western Indian
In Kenya, Vanoil was negotiating to extend its interest in onshore
Blocks 3A and 3B, originally acquired in October 2007 through the
signing of a Production Sharing Contract (PSC) with the Government of
the Republic of Kenya. These blocks cover 24,912 km2 in Kenya's Anza
Basin and are geologically analogous to the prolific Muglad and
Melmut Basins of South Sudan and geographically in close proximity to
the recent PaiPai and Sala-1 discoveries in Kenya. Vanoil will now
seek arbitration in order to recover its significant investment and
lost profit opportunity in Blocks 3A and 3B.
In offshore Kenya, Vanoil has a 10% working interest in the highly
prospective 5,110 km2 Block L9 alongside Dominion Petroleum Kenya
Limited (a wholly owned subsidiary of Ophir Energy plc) and FAR
Limited. This block lies directly south of Block L8 which hosts the
Mbawa gas discovery made in 2012.
In offshore Kenya, Vanoil has an interest in Kenyan Block L9. In
September 2011, the Kenya Ministry of Energy confirmed the 10%
interest of Avana Petroleum Ltd. (now a subsidiary of Vanoil) in the
highly prospective 5,110 km2 Block L9 alongside Dominion Petroleum
Kenya Limited (a wholly owned subsidiary of Ophir Energy plc
("Ophir") and Flow Energy Limited (since taken over by FAR Limited).
In January 2014, the Kenyan Ministry of Energy and Petroleum denied a
request by Ophir to assign and transfer a 10% interest to Avana
Petroleum Kenya Limited. Vanoil notes that this position is
In the Seychelles, Vanoil has a 25% participating interest alongside
partner Afren plc ("Afren") in offshore Exploration Areas A and B,
covering some 14,319 km2. Afren has recently increased its internal
valuation of its 75% interest in the Seychelles. .
On behalf of the Board of
VANOIL ENERGY LTD.
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
Disclaimer for Forward Looking Information
This news release includes forward-looking statements that are
subject to assumptions, risks and uncertainties. Statements in this
news release which are not purely historical are forward-looking
statements, including without limitation any statements concerning
the Company's intentions, plans, estimates, beliefs or expectations
regarding the future. Although the Company believes that any such
intentions, plans, estimates, beliefs and expectations in this news
release are reasonable, there can be no assurance that any such
intentions, plans, beliefs and expectations will prove to be
The Company cautions readers that all forward-looking statements,
including without limitation those relating to the Company's future
operations and business prospects, are based on assumptions that
cannot be assured and are subject to certain risks and uncertainties
that could cause actual events or results to differ materially from
those indicated in the forward-looking statements. Readers are
advised to rely on their own evaluation of such risks and
uncertainties and should not place undue reliance on forward-looking
Any forward-looking statements are made as of the date of this news
release, and the Company assumes no obligation to update the
forward-looking statements, or to update the reasons why actual
events or results could or do differ from those projected in the
forward-looking statements. The Company assumes no obligations to
update any forward-looking statements, whether as a result of new
information, future events or otherwise.
Sam Malin, CEO
+ 44 7624 392 045
+1 605 689 1515 x 108
+1 604 684-1974 x 227
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