NEWS RELEASE TRANSMITTED BY Marketwired
FOR: Vanoil Energy Ltd.
TSX VENTURE SYMBOL: VEL
JULY 7, 2014
Vanoil Provides Update on Kenyan Blocks 3A and 3B
VANCOUVER, BRITISH COLUMBIA--(Marketwired - July 7, 2014) - 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 Ocean.
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 inconstant.
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 accurate.
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.
FOR FURTHER INFORMATION PLEASE CONTACT:
Sam Malin, CEO
+ 44 7624 392 045
+1 605 689 1515 x 108
+1 604 684-1974 x 227
INDUSTRY: Energy and Utilities - Oil and Gas
-0- Jul/07/2014 13:15 GMT
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