Vanoil Provides Update on Kenyan Blocks 3A and 3B
July 7, 2014 (Source: Marketwired) — 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 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.
Raj Shah has been a member of the InvestorIntel.com team for the last nearly 9 years. Recruited from Merrill Lynch, he has over 13 years’ ... <Read more about Raj Shah>