Vanoil Announces Settlement Accord with the Government Of Rwanda

Vanoil Energy Ltd. a Vancouver-based Canadian international oil and gas development company has announced that the Government of Rwanda and Vanoil have agreed to end their discussions regarding the exploration of Lake Kivu in Rwanda following expiry of the Technical Evaluation Agreement (“TEA”) between them in June 2013.

As part of this agreement, the Government of Rwanda and Vanoil have amicably resolved the issues referred to in the Conciliation Committee under the TEA.

In Kenya, Vanoil holds a 100% interest in onshore Blocks 3A and 3B, acquired in October 2007 through the signing of a Production Sharing Contract (PSC) with the Government of the Republic of Kenya.

These blocks cover 24,912 km2 in Kenya’s Anza Basin and are geologically analogous to the prolific Muglad and Melmut Basins of South Sudan and geographically in close proximity to the recent PaiPai discovery in Kenya

In offshore Kenya, the Company anticipates the receipt of its 10% working interest in the highly prospective 5,110 km2 Block L9 alongside Dominion Petroleum Kenya Limited (a wholly owned subsidiary of Ophir Energy plc) and FAR Limited. This block lies directly south of Block L8 which hosts the Mbawa gas discovery made in 2012.

In the Seychelles, Vanoil has a 25% participating interest alongside partner Afren plc in offshore Exploration Areas A and B, covering some 14,319 km2.