VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 09/10/13 -- Vanoil Energy Ltd. (TSX VENTURE: VEL) ("Vanoil" or the "Company"), a Vancouver-based Canadian international oil and gas development company today announced its intention to initiate "conciliation" discussions with the government of the Republic of Rwanda to resolve a dispute related to the Company's exploration and analysis of an oil and gas asset in the East African country. Conciliation is the first-step in the commercial arbitration process agreed to by both Vanoil and the Rwanda government to resolve any commercial dispute.
The Company has been engaged for more than six years in an oil and gas exploration and evaluation program in the north-western part of Rwanda, better known as "East Kivu Graben Basin". Vanoil undertook these activities pursuant to a Technical Evaluation Agreement ("TEA") with the Rwanda government. The TEA was necessary to facilitate Vanoil's exploration and evaluation activities as Rwanda lacked the requisite legal framework to promote, protect and otherwise govern oil and gas exploration in the country.
Under the TEA, Vanoil secured a "Right of First Option" to enter into a production-sharing contract ("PSC') with the Rwandan government in relation to any promising oil discoveries identified in the East Kivu Graben Basin. Vanoil has spent in excess of $3 million (USD) on its exploration activities based on Rwanda's commitment to conclude a binding PSC with the Company. In June 2013, after many months of negotiation for a PSC, the Rwandan government, without notice or justification, summarily terminated negotiations and, with that, terminated Vanoil's exclusive rights to develop the East Kivu Graben Basin.
Vanoil has selected a lawyer to participate on the three-person conciliation panel. The Company understands that Rwanda has also selected its representative to the conciliation panel and it is expected that a third panellist will also be selected shortly by the parties.
About Vanoil Energy Ltd.
Vanoil is an oil and gas company with a portfolio of assets in East Africa and the African state of the Seychelles Islands in the Indian Ocean.
In Kenya, Vanoil holds a 100% interest in onshore Blocks 3A and 3B, 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 between Tullow Oil's recent oil discoveries and Apache Corp.'s offshore gas well.
In offshore Kenya, the Company has negotiated a 10% working interest in the highly prospective 5,110 km2 Block L9 from Dominion Petroleum Kenya Limited (a wholly owned subsidiary of Ophir Energy plc). This block lies directly south of Block L8 where Apache Corporation made its Mbawa gas discovery in 2012.
In the Seychelles, Vanoil has a 25% participating interest alongside partner Afren plc in offshore Exploration Areas A and B, covering some 14,319 km2.
On behalf of the Board of VANOIL ENERGY LTD.
Aaron D'Este, President
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 statements.
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.
Vanoil Energy Ltd.
+1 604 689-1515 x104
Vanoil Energy Ltd.
+1 604 689-1515 x108
Vanoil Energy Ltd.
+1 604 684-1974 x 227
Media and investor enquiries:
Natalia Erikssen, Sara Powell
+44 20 7269 9348
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