Vanoil Energy Ltd.
TSX VENTURE : VEL

Vanoil Energy Ltd.

May 01, 2012 09:35 ET

Vanoil Provides Update on Blocks 3A and 3B

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 1, 2012) - Vanoil Energy Ltd. ("Vanoil") (TSX VENTURE:VEL) is pleased to provide an update on the first quarter 2012 program. In 2011, Vanoil contracted Sproule International Ltd. ("Sproule") and Geoseis Inc. ("Geoseis") both of Calgary to interpret approximately 2,850 km of seismic data. This data included, legacy 2,000 km, seismic data shot in 1975 by Chevron that has proved to be of immense value after reprocessing for structural analysis but lacking the offset range for amplitude analysis.

Vanoil acquired 850 line km prospect grade seismic data in 2010 and 2011 at a cost of US$8.5 million that has adequate offsets for the purpose of mining geological data from seismic amplitudes.

The data has been relative amplitude and Amplitude Versus Offset (AVO) processed by Statcom Ltd. of Calgary. Structural leads identified by Sproule and Geoseis are observed to be coincident with some of the AVO anomalies. This correlation has de-risked and ranked the Sproule identified 27 leads.

The complete seismic data has been further subjected to advanced reservoir characterisation techniques (Chimney analysis by dGB / Petro-explorers highly successful in North Sea, Gulf of Mexico and on shore basins in South America) ranking the 27 leads by their fault sealing and hydrocarbon charge attributes.

This has led to delineation of an area of approximately 1,700 square km on the South and South-West flanks of the South Anza basin. The area is analogues to Melut basin in Sudan and is characterised by 15 leads that are grouped into Eastern, Southern and Western lead areas.

The Eastern lead area bears strong characteristics to the Adar Yale oil field in Sudan. It composed of a string of 6 leads which start from the depo center of South Anza basin up along a rollover structures and ending on a Horst block of a Karoo Graben. Stratigraphic sequence analysis of seismic data and correlation near the Bahati and Endela wells, which 15 km away from East focus leads and 20 km for the Western focus leads respectively clearly correlates the likely source and possible reservoir facies. This is fundamentally different interpretative approach (AAPG approved) from past practices due to advent of seismic sequence and facies analysis techniques in the 80's. The structural considerations alone has been the criteria of choosing drilling sites in past failed exploration programs.

In order to properly place the over 75 square km 3D seismic survey (cost $3.5 million) on one or two of the 15 leads, a 78 km 2D seismic survey at a cost of $800,000 has been designed and shot in Block 3B along a string of 6 leads identified approximately 15km from the Bahati well. It was initially targeted for shooting in the last quarter of 2011 but heavy rains and adverse HSSE issues led to its postponement.

The 2D and 3D seismic data to be acquired in the second and third quarter of 2012 will lead to more advanced reservoir characterization techniques being applied for the purpose of choosing an optimum drilling site.

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. Blocks 3A and 3B, which cover 24,912 square kilometers, are part of the vastly under-explored Cretaceous Central African Rift Basin System, an area that may hold the next major sub-Saharan discoveries. Vanoil's 1,631 square kilometers of oil and gas exclusive license 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 neighboring Uganda.

To find out more about Vanoil, please visit our website at www.vanoil.ca.

On behalf of the Board of VANOIL ENERGY LTD.

James Passin, President and CEO

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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.

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