VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 10, 2012) - Vanoil Energy Ltd. ("Vanoil" or the "Company") (TSX VENTURE:VEL) has closed its non-brokered private placement (the "NB Offering"), announced on June 18, 2012, issuing 8,317,484 units (the "NB Units") of the Company at a price of $0.60 per NB Unit for total gross proceeds of $4,990,490.40. Each NB Unit consists of one common share of the Company (a "Share") and one whole non-transferable share purchase warrant (a "Warrant"). Each Warrant will entitle the holder to purchase one Share at a price of $1.00 for a period of 24 months following closing. The Warrant will be subject to accelerated expiry if, at any time after the date that is four months and one day of the closing, the Company's Shares trade on the TSX Venture Exchange (the "Exchange") at a price of $1.50 or more for the preceding 20 consecutive trading days.
The securities issued pursuant to the NB Offering will be subject to a four month hold period. The Company paid finder's fees totalling $78,455 and 130,108 broker warrants.
The proceeds of the NB Offering will be used to complete the 100 square kilometer 3D seismic program currently underway, secure the previously selected drill rig for the Company's initial exploration well on Kenyan Blocks 3A and 3B, for completion of a Production Sharing Agreement with the Republic of Rwanda and for general working capital purposes.
Mr. James Passin, President and CEO stated, "This round of funding is important, as it enables the Company to continue its aggressive exploration and begin mobilization in preparation for its Q1 2013 drill program."
About Vanoil Energy Ltd.
Based in Vancouver, Canada, Vanoil is an internationally diversified resource company that has a comprehensive portfolio of oil and gas assets in the African countries of Kenya and Rwanda. In Kenya, Blocks 3A and 3B were acquired in October 2007 through the signing of a Production Sharing Contract with the Government of the Republic of Kenya. Blocks 3A and 3B, which cover 24,912 square kilometers, are part of the vastly under-explored Cretaceous Central African Rift Basin System, an area that may hold the next major sub-Saharan discoveries. Vanoil's 1,631 square kilometers of oil and gas exclusive licence in the East Kivu Graben in Rwanda is at the southern extension of the Albertine Graben where Heritage and Tullow Oil made their historic discovery in neighbouring Uganda.
On behalf of the Board of VANOIL ENERGY LTD.
James Passin, President and CEO
Disclaimer for Forward Looking Information
This news release includes forward looking statements that are subject to assumptions, risks and uncertainties. Statements in this news release which are not purely historical are forward looking statements, including without limitation any statements concerning the Company's intentions, plans, estimates, beliefs or expectations regarding the future. Although the Company believes that any such intentions, plans, estimates, beliefs and expectations in this news release are reasonable, there can be no assurance that any such intentions, plans, beliefs and expectations will prove to be accurate.
The Company cautions readers that all forward looking statements, including without limitation those relating to the Company's future operations and business prospects, are based on assumptions none of which can be assured, and are subject to certain risks and uncertainties that could cause actual events or results to differ materially from those indicated in the forward looking statements. Readers are advised to rely on their own evaluation of such risks and uncertainties and should not place undue reliance on forward looking statements.
Any forward looking statements are made as of the date of this news release, and the Company assumes no obligation to update the forward looking statements, or to update the reasons why actual events or results could or do differ from those projected in the forward looking statements. The Company assumes no obligations to update any forward looking statements, whether as a result of new information, future events or otherwise.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.