Vanco Discovers Oil Offshore Cote d'Ivoire

Vanco Côte d'Ivoire Ltd. (Vanco), together with LUKOIL Overseas Côte d'Ivoire Ltd. and PETROCI Holding, announces a discovery in Block CI-401. The Independance-1X exploration well drilled on Block CI-401 has penetrated the targeted objective and found a series of good-quality sandstones containing light oil. Full analysis of well results, including wireline logs, reservoir pressures and fluid samples, confirms that the well penetrated 8 meters (26 feet) of hydrocarbon pay in good-quality Turonian-aged sand package. Hydrocarbon samples recovered from the Independance-1X well indicate 40 degrees API gravity. The well will be temporarily abandoned at a total depth of 4,132 meters.

The Independance-1X was drilled in a water depth of 1,689 meters, approximately 93 kilometers (58 miles) south southeast of Abidjan, and represents one of the deepest water exploration wells drilled to date in the eastern offshore Ivorian Basin. The well was drilled using the Ocean Rig Olympia (UDW drillship) - a dynamically positioned sixth generation deepwater drillship.

The Independance-1X is the second exploration well to be drilled in Block CI-401, which encompasses an area of 619 square kilometers (152,948 acres) in water depths ranging from 950 to 2,100 meters. Drilling is currently in progress on one more deepwater exploration well in Block CI-401, the Albacore-1X, located 33 kilometers (21 miles) to the east of Independance-1X on a similar large Turonian deepwater slope channel stratigraphic trap.

On September 30, 2005, the Government of the Republic of Côte d'Ivoire, Vanco Côte d'Ivoire Ltd. and Petroci Holding signed a Production Sharing Contract covering Block CI-401. LUKOIL Overseas Côte d'Ivoire Ltd. joined the block in 2007. Vanco (Operator) holds a 28.34% participating interest with LUKOIL holding a 56.66%. PETROCI Holding, the state oil company, holds a 5% participating interest together with a 10% carried interest.