Vanoil Granted Extension for Kenya Blocks
Vanoil announced that the Ministry of Energy of Kenya has accepted Vanoil's request for an extension of the initial exploration period for Vanoil's 100% owned Blocks 3A and 3B, which are comprised of 24,912 square kilometers of oil and gas concessions in the Republic of Kenya's Central African Rift Basin System. The initial exploration period has been extended for eleven months and will now expire on September 30, 2012.
The granting of the extension is conditional upon the following additional Production Sharing Contract ("PSC") commitments:
- Complete an additional 25km2 of 3D seismic in the block to increase the seismic program to 75km2;
- Increase in surface and training fees;
- Provide a 50% bank guarantee and 50% parent company guarantee; and
- One well commitment.
Vanoil has confirmed the Company's acceptance of the Ministry of Energy of Kenya's terms for the extension of the initial exploration periods of Blocks 3A and 3B and will undertake to ensure that the additional commitments to the PSC are met. Vanoil expects the additional 3D seismic and increase in surface and training fees to increase the Company's commitment by approximately US $1.1 million for the initial exploration period.