June 1, 2011 - Nairobi, Kenya - Vanoil Energy Ltd. ("Vanoil" or the "Company") is pleased to announce, it has executed an agreement with the Bureau of Geophysical Prospecting ("BGP"). BGP is one of the world's leading geophysical service companies and will commence the 2011 seismic data acquisition programs in Vanoil's 100% owned Block 3B in Kenya. Vanoil's 100% owned Blocks 3A and 3B comprise of 24,682 square kilometres of oil and gas exploration concessions in the Republic of Kenya's Central African Rift System.
From further understanding and evaluations of the 2010 seismic program which was in excess of US $5 million and conducted by BGP, Vanoil has executed a second contract with BGP for US $3.5 million which involves the acquisition of approximately 373 line-km, 320- fold seismic data.
Completion of the data acquisition phase is expected by the end of September 2011.
The data obtained from the 2010 program is currently being evaluated by Sproule International Limited ("Sproule") with results expected within the next few weeks in which Vanoil will receive the National Instrument 51-101 compliant report from Sproule. The Company also announces it plans to undertake further 3D seismic in the third quarter of 2011.
Additional costs will be incurred on technical equipment audit, quality assurance control, data reprocessing, interpretation and integration with other geophysical/geological data. The total cost of the project is estimated at US $4.6 million. Presently, the crews are being mobilized and within the next 45 days will be ready to commence field operations. Sensitization of the grassroots residents in the new project area (Block3B) has been done by Vanoil assisted by MOE (Ministry of Energy) and local Provincial administration.
The objective of the Vanoil 2011 seismic program is to delineate more leads in Block 3B and to upgrade three known leads to possible drillable targets.
Mr. Dal S. Brynelsen, President and Chief Executive Officer of Vanoil, commented, "we are very pleased to have executed a second agreement with BGP and look forward to engaging such a high quality organization to implement our seismic plans for Block 3B".
About Vanoil Energy
Based in Vancouver, Canada, Vanoil is an internationally diversified Oil and Gas exploration company that has a portfolio of oil and gas assets in the African countries of Kenya and Rwanda, and in the Province of Alberta, Canada. In 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. Blocks 3A and 3B, which cover 24,682 square kilometres, are part of the vastly under-explored Cretaceous Central African Rift Basin System. Vanoil has a 1,631 square kilometre oil and gas concession in the East Kivu Graben in Rwanda. Vanoil also owns a 42% working interest in the Sarcee 12-13 gas well and the surrounding four sections (2,560 acres) of land in the Turner Valley Area in South --western Alberta.
To find out more about Vanoil please visit our website at
www.vanoil.ca or contact Dal Brynelsen at 604-684-1974 or by email
brynelsen@vanoil.ca.
On Behalf of the Board of
VANOIL ENERGY LTD.
"Dal Brynelsen"
Dal Brynelsen, President and CEO
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Statements containing forward-looking information express, as at the date of this news release, the Company's plans, estimates, forecasts, projections, expectations, or beliefs as to future events or results and are believed to be reasonable based on information currently available to the Company.
Forward-looking statements and information are based on assumptions that financing and personnel will be available when required and on reasonable terms, and all necessary regulatory approvals and shareholder approval will be obtained, none of which are assured and are subject to a number of other risks and uncertainties
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