Vanoil Energy Ltd.

Vanoil Energy Ltd.

April 19, 2012 13:23 ET

Vanoil Extends Technical Evaluation Agreement With Ministry of Natural Resources of Rwanda

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 19, 2012) - Vanoil Energy Ltd. ("Vanoil" or the "Company") (TSX VENTURE:VEL) is pleased to announce it has executed a six month extension to the Technical Evaluation Agreement with the Rwandan Ministry of Natural Resources for Vanoil's 1,631 square kilometre oil and gas license in the East Kivu Graben Basin.

Vanoil continues to work with the Rwandan Government on drafting of a Production Sharing Contract ("PSC") which, when completed, will become the country's first PSC.

Vanoil, with the assistance of experts from Syracuse University in New York, has just completed its high resolution, low energy, low penetration 2D seismic survey. Processing of this data is currently underway in Calgary, Alberta and Syracuse, New York. The Company expects to have this data processed and interpreted by late May 2012.

Subject to regulatory approval and pursuant to the Company's shareholder approved option plan, the board of directors allocated a total of 1.075 million share purchase options to certain of its officers, directors and consultants in appreciation of and as an incentive to build Vanoil into a significant oil and gas producer primarily focused on the African Continent. Each option will entitle the holder to purchase one common share of the Company at an exercise price of $0.80 for a period of ten years from date of grant.

About Vanoil Energy Ltd.

Based in Vancouver, Canada, Vanoil is an internationally diversified resource company that has a comprehensive portfolio of oil and gas assets in the African countries of Kenya and Rwanda. 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. Part of the Blocks 3A and 3B acreage (24,912 square kilometres) occupies the South Anza rift basin which is a part of the vastly under-explored Cretaceous Central African Rift System in Kenya and an area that may hold the next major sub-Saharan discoveries. Vanoil's 1,631 square kilometers of oil and gas licence in the East Kivu Graben in Rwanda is at the southern rift trend of the Albertine Graben where Heritage and Tullow Oil made their historic discovery in neighbouring Uganda.

On behalf of the Board of Directors


James Passin, 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.

Contact Information