VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 04/19/13 -- Vanoil Energy Ltd. (TSX VENTURE: VEL), a TSX-V-listed oil and gas company with a portfolio of assets in East Africa ("Vanoil"), is pleased to announce that, following the announcement on 26 March 2013, confirming its intention to acquire the entire issued and to be issued share capital of AIM-listed Fluormin PLC (AIM: FLOR) ("Fluormin"), it has received confirmation of Fluormin's shareholders having passed by the necessary majorities, the resolutions proposed at the Court Meeting (convened by order of the High Court of Justice in connection with the scheme of arrangement) and at the general meeting held yesterday.
The approval by Fluormin's shareholders of the scheme of arrangement is a significant step towards the implementation of the scheme, which is expected to become effective on 17 May 2013, subject to the satisfaction of further conditions.
Vanoil is also pleased to announce that its newly acquired subsidiary, Avana Petroleum Kenya Limited ("Avana"), has entered into a transfer agreement with Dominion Petroleum Kenya Limited ("Dominion") (a wholly owned subsidiary of Ophir Energy plc), to perfect Avana's title to a 10% participating interest in Kenya offshore Block L9. Dominion holds the balance of the participating interest.
Aaron D'Este, President and CEO, commented:
"It was excellent to see such strong support from Fluormin's shareholders at the meetings held yesterday. The affirmative results are a significant and positive step in the implementation of the scheme of arrangement. The acquisition of Fluormin, once completed, will provide an invaluable source of capital for Vanoil. Execution of the L9 transfer agreement is also a welcome step in the diversification of our East African asset portfolio. The encouraging results in neighbouring blocks, and the density of seismic already acquired, give us cause for optimism in L9."
Vanoil also announces that it has filed a 51-101 report on the prospective resources of Avana Petroleum Ltd., which is available under the Company's profile at www.sedar.com.
About Vanoil Energy Ltd.
Based in Vancouver, Canada, Vanoil is an oil and gas company with a portfolio of assets in East Africa.
In onshore 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. These blocks, which cover 24,912 km2, potentially contain prospective resources in excess of 0.9 boe, positioned between Tullow's recent oil discovery and Apache's offshore gas well. In offshore Kenya, the anticipated perfection of a 10% participating interest in 5,110 km2 offshore Block L9, alongside partner Dominion Petroleum Kenya Limited (a wholly owned subsidiary of Ophir Energy plc ("Ophir")), is estimated by Ophir to represent a net 270 million boe to Vanoil.
In the Seychelles, Vanoil's 25% participating interest alongside partner East African Exploration Seychelles Limited (a wholly owned subsidiary of Afren plc ("Afren")) in oil and gas exploration Areas A and B, which total some 14,000 km2, has a recoverable mean unrisked prospective resource net to Vanoil estimated by Afren of 0.7 boe.
Vanoil also has the exclusive right to negotiate a production sharing contract with the Republic of Rwanda covering 1,631 square kilometres of oil and gas concessions in the northwestern part of the Republic of Rwanda, better known as "East Kivu Graben".
The release, publication or distribution of this announcement in certain jurisdictions may be restricted by law.
This announcement contains statements about Vanoil and Fluormin that are or may be forward looking statements. All statements other than statements of historical facts included in this announcement may be forward looking statements. Without limitation, any statements preceded or followed by or that include the words "targets", "plans", "believes", "expects", "aims", "intends", "will", "may", "anticipates", "estimates", "projects" or words or terms of similar substance or the negative thereof, are forward looking statements. Forward looking statements include statements relating to the following: (i) future capital expenditures, expenses, revenues, earnings, synergies, economic performance, indebtedness, financial condition, dividend policy, losses and future prospects; (ii) business and management strategies and the expansion and growth of Vanoil's operations and potential synergies resulting from the acquisition Of Fluormin; and (iii) the effects of government regulation on Vanoil's business. Such forward looking statements involve risks and uncertainties that could significantly affect expected results and are based on certain key assumptions. Many factors could cause actual results to differ materially from those projected or implied in any forward looking statements. Due to such uncertainties and risks, readers are cautioned not to place undue reliance on such forward looking statements, which speak only as of the date hereof. Vanoil disclaims any obligation to update any forward looking or other statements contained herein, except as required by applicable law.
By definition of the COGE Handbook - "Undiscovered resources are those quantities of oil and gas estimated on a given date to be contained in accumulations yet to be discovered." Further the Handbook states - Caution (per NI 51-101/5.9(2)(v)(B)) - "There is no certainty that any portion of the resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the resource."
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.
Vanoil Energy Ltd.
+1 604 763 1229
Vanoil Energy Ltd.
+1 604 220-2000
Vanoil Energy Ltd.
+1 604 684-1974 x 227
604 685-5970 (FAX)
Billy Clegg, Natalia Erikssen, Sara Powell
+44 20 7269 9348
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