Africa

Vanoil's oil and gas operations in Africa hold the potential for the company to make a significant find and become the next Heritage and Tullow Oil. With exploration assets in Kenya and Rwanda located on the same East African rift system as the billion barrel discovery made by Heritage in 2007 the potential for significant hydrocarbon generation on Vanoil's properties remains promising.

Vanoil holds production sharing contracts for Blocks 3A and 3B located in the Anza Graben in Kenya which is a vastly under-explored area of the East African rift basin petroleum system. Vanoil is not alone in its excitement about the possibility of this area holding the next major Sub Saharan discovery. Major Blocks next to Vanoil's are held by the Chinese National Offshore Oil Company (CNOOC), Lion Petroleum and Africa Oil Corporation. Africa Oil Corporations enthusiasm about the potential of Eastern Kenya was made apparent when they announced on February 4th 2009 the purchase for a large portion of Lundin Petroleum's East African exploration portfolio, including Block 10A and a 30% interest in Block 9 adjacent to Vanoil's Block's 3A and 3B.

In addition to its Kenyan properties Vanoil also holds exclusive exploration rights to the 1,631 sq km oil and gas concession located in the Kivu Graben in northwestern Rwanda better known as East Kivu Graben. Like Vanoil's Blocks in Kenya the Kivu Graben is part of the great East African rift system and is the southern extension of the Albertine Graben where Heritage and Tullow oil have made their historic discovery. Fault/linear interpretation of landsat imagery in earlier studies of the area indicated a strong correlation of identified slicks with faults. This is a positive feature as oil migrates along fault lines and led Vanoil to undertake further technical studies of the area. Results of the report stated that the existence of long chain hydrocarbons in the Lake Kivu waters has all along indicated the possible presence of active oil generation and accumulation in East Kivu Graben.