Vanoil Energy Ltd.
TSX VENTURE : VEL

Vanoil Energy Ltd.

September 08, 2010 11:13 ET

Vanoil Energy Ltd.: Kenya Seismic Program Commence

Vanoil Set to Confirm 5 Leads to Drill Point Election

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 8, 2010) - Vanoil Energy Ltd. ("Vanoil") (TSX VENTURE:VEL) is proud to announce that it has commenced its comprehensive 2D seismic program on its 100% owned Block 3A in Kenya, which is strategically situated in the Anza Basin within the hydrocarbon prolific Cretaceous Central African Rift Basin System, adjacent to blocks held by the Chinese National Offshore Oil Corporation (CNOOC), Tullow Oil plc, Africa Oil and Lion Petroleum.

The budget for the 2D seismic program is USD $4,600,000 and will cover in excess of 400 line kilometres within the 12,400 square kilometres of Vanoil's Block 3A. The shooting of the first seismic line, which covered 57 kilometres, has been completed and is currently being evaluated. Vanoil anticipates the Seismic program to be completed in early October, at which time a complete set of data will be sent for processing and interpretation. Proposals for the execution of the final phase of the seismic program have been received and are being evaluated.

To date, Vanoil has mapped a total of eleven prospects/leads based on 1500 line kilometres of Chevron 2D seismic. A key objective of Vanoil's ongoing seismic program is to test the un-risked potential of five leads in Block 3A that have size, potential and position in the heart of the Anza Basin. One of the priority prospects, Prospect 6, a proposed re-drill of the Endela-1 well, which was originally drilled to a depth of just 2500 meters, targets a 250 million barrel potential cretaceous anticline with amplitude anomalies similar to successful wells drilled in the Albertine Basin of Uganda.

The Company's 100% owned Blocks 3A and 3B, which cover approximately 25,000 square kilometers, puts Vanoil in the front and centre of the action in Kenya, in a play many industry veterans consider one of the last great rift basins open to exploration. The highly prospective Central African Rift System, which extends into Vanoil's Block 3A, has the prolific Melut and Muglad basins in southern Sudan, two of the major sources of crude oil in Africa. Also in the East African region we have the Albertine Graben in Uganda where Tullow Oil has discovered and identified resources in excess of 2.5 billion barrels (Tullow Oil plc: Sept 02, 2010).

Vanoil's President, Mr. Dal Brynelsen, commented, "Interest in the area is heating up, evidenced by Tullow Oil's recent farm-in agreement with Africa Oil to acquire a 50% interest in licences covering the East African Rift Basins of Kenya and Ethiopia. With 25,000 square kilometres of oil and gas rights, VanOil is a significant petroleum rights holder in Kenya. We are now putting our geo-science to the test with this seismic program, set to confirm five leads to drill point election in the Cretaceous-age Anza Graben, which underlies Block 3A, and is host to reservoir, seals and potential source rocks that suggest the presence of a petroleum system."

About Vanoil Energy Ltd.

Based in Vancouver, Canada, Vanoil Energy Ltd. is an internationally diversified resource company that has a comprehensive 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 24,912 square kilometres, are part of the vastly under-explored Cretaceous Central African Rift Basin System, an area that may possibly hold the next major sub-Saharan discovery. Vanoil's 1,631 square kilometres of oil and gas concession in the East Kivu Graben in Rwanda is at the southern extension of the Albertine Graben where Heritage and Tullow Oil made their historic discovery in neighbouring Uganda. 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 Energy Ltd. please visit our website at www.vanoil.ca.

On Behalf of the Board of VANOIL ENERGY LTD.

Dal Brynelsen, President and CEO

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