Vanco Disputes Ukranian Decision to Sever Prykerchenska PSA

Vanco Energy Company condemns the decision reached by Ukraine's Cabinet of Ministries to unilaterally and arbitrarily cancel the Company's Prykerchenska Production Sharing Agreement.

In 2007, Vanco was awarded this PSA through a fair, open and transparent selection process. The rigorous selection process involved four different Ukrainian cabinets of ministries and Vanco's bid received the full support of Ukraine's president.

"It is unfortunate and regrettable that Prime Minister Tymoshenko has decided to cancel a legally binding and internationally recognized agreement," said Vanco's Chairman and President Gene Van Dyke. He added that, "Vanco is committed to working together with the Ukrainian government in order to resolve this dispute in a timely and equitable manner."

If necessary, however, Vanco is prepared to defend its rights to the fullest extent of the law.