JNR EIL and Vanco entered into a 50:50 bidding agreement to participate in the government tender and submitted their application on 24 March 2006. Tender results were announced 19 April 2006. The tender area covers in excess of 12,900 square kilometers. Based on a preliminary analysis performed by Vanco, the area includes a number of very attractive prospects, including possible structures in excess of 1 billion barrels of oil equivalent.
Gene Van Dyke, Chairman and CEO of the Vanco Energy Company said:
"The Ukrainian side demonstrated its commitment to a fair and transparent tender process. We are very happy with the result. The success of this exploration project will be a major boost to Ukraine's efforts to become more energy independent. While deepwater exploration is very risky, I believe that Ukraine's Black Sea represents an extremely attractive opportunity for Vanco. And, Vanco in association with JNR has the requisite deepwater expertise and financial capability needed to successfully explore the tender area."
Nathaniel Rothschild, Chairman of JNR EIL, said:
"We are delighted with the decision of the Intergovernmental Committee and will await the resolution of the Cabinet of Ministers to award us the right to enter the PSA on the Prykerchenska Tender Area. The Ukrainian decision this week was made on the background of strong competition from a number of major oil companies. JNR EIL is pleased to be able to work on this project with Vanco -- who over the course of the tender period have proved their reputation as one of the world's premier deepwater oil exploration companies. The combination of Vanco's vast experience and our financial commitment offers a unique opportunity for the successful development of Ukraine's hydrocarbon resources."
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