Vanoil Energy Ltd.
TSX VENTURE : VEL

Vanoil Energy Ltd.

February 09, 2010 18:03 ET

Vanoil Completes Rights Offering for CDN $5,355,814

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 9, 2010) - Vanoil Energy Ltd. (TSX VENTURE:VEL) ("Vanoil" or the "Company") is pleased to announce that it has completed its previously announced Rights Offering, issuing 8,032,184 common shares pursuant to the exercise of basic and additional subscription rights for gross proceeds of $4,016,092. Vanoil is currently in the process of arranging, pursuant to its standby purchase agreement with Firebird Global Master Fund, Ltd. and Firebird Global Master Fund II, Ltd., for the payment and issuance of the remaining 2,679,444 common shares underlying unexercised rights, for which it will receive the balance of the $1,339,722 in gross proceeds. Total proceeds to Vanoil will be $5,355,814.00.

After completion of the Rights Offering (and including the shares to be issued pursuant to the standby agreement). The capital structure of Vanoil as of the closing of the rights offering will be 21,423,256 common shares issued and outstanding. The company was listed on the TSX Venture Exchange on December 31, 2009.

Vanoil and its Board of Directors are also very pleased to announce that Mr. Bob Chenery P Eng, MBA will be joining Vanoil as a consultant. Mr. Chenery has a vast amount of experience in both North America and the international oil and gas business. Mr. Chenery will be responsible for advising the President and will be managing the Sarcee project in Alberta. Currently, the company is making development and exploration plans for the Sarcee project for which a more detailed announcement will be made in the very near future.

The Directors and Officers of the Company are as follows;

Dal Brynelsen Director, President and CEO
James Passin Director
Mike Mackey Director
Don Padgett Director
Francis Karanja Director and VP of Exploration Africa
Sandy Huntingford CFO
Betty Anne Loy Corporate Secretary

The Company is planning to use the proceeds of the rights offering for working capital and to advance its Eastern Kenya projects mainly Blocks 3A and 3B as the area is very active with major oil companies. (CNOOC) China National Offshore Oil Company, Africa Oil and the Taiwanese Oil Company are actively drilling a $26 million dollar well approximately 60 kilometres from Vanoil's concession.

Dal Brynelsen, President and CEO, commented, "We are very pleased to see the success of the rights offering and look forward to the advancement of our projects for 2010 in Alberta, Eastern Kenya and Rwanda."

On Behalf of the Board of
VANOIL ENERGY LTD.

"Dal Brynelsen"
Dal Brynelsen, President and CEO

Disclaimer for Forward-Looking Information

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.

There can be no assurance that forward-looking statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. Readers should not place undue reliance on forward-looking information.

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.

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