Vanco & ENI to Begin Drilling Offshore Morocco in April

Vanco Energy's subsidiary, Vanco Morocco Ltd., has signed a participation agreement with ENI Morocco B.V. to commence drilling of its first deepwater well in its Ras Tafelney exploration permit offshore Morocco. Under the terms of the agreement, ENI will contract the Saipem 10000 drillship to drill one of several 3D seismic identified prospects. The Ras Tafelney partnership comprises Vanco Morocco Ltd., as Operator with 45%, ENI Morocco B.V. with 30%, and ONAREP with the remaining 25%.

The partnership will drill the Shark B prospect located approximately 130 km off the coast of Morocco, lying in 2,120 meters of water depth. The main objective is the Top Cretaceous and Albian reservoirs while a Lower Tertiary turbidite play at shallower depths is a secondary target. The planned total depth is approximately 4,162 meters. The drillship is anticipated to be in Moroccan Atlantic waters in late April 2004 where plans call for spudding the well shortly after its arrival.