VANCOUVER, BRITISH COLUMBIA — (Marketwire) — 12/11/12 — Vanoil Energy Ltd. (TSX VENTURE: VEL) (“Vanoil” or the “Company”) announces plans for a non-brokered private placement of up to 8,333,333 units at a price of $0.60 per unit for aggregate gross proceeds of up to $5 million.
Each unit will consist of one common share and one non-transferable warrant, each warrant entitling the holder to purchase one common share at a price of $1.00 for a period of 24 months following the closing date. The warrant will be subject to accelerated expiry if at any time after the date that is four months and one day after the closing, the Issuer–s common shares trade on the Exchange at a price of $1.50 or more for the preceding 20 consecutive trading days.
The securities issued pursuant to the private placement will be subject to a four month hold period from the closing date. The Company may pay finder–s fees in connection with the private placement, subject to compliance with the policies of the Exchange. Completion of the private placement and the payment of any finder–s fees remain subject to the receipt of all necessary regulatory approvals, including the approval of the Exchange.
The proceeds of the private placement will be used to further its drilling and development plans in East Africa, including Blocks 3A and 3B in Kenya.
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. The Company is preparing to drill in Q1 2013 its first exploration well on its Kenyan concession. Vanoil–s is also the holder of 1,631 square kilometers of an oil and gas exclusive licence in the East Kivu Graben in Rwanda 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.
Aaron D–Este, Chief Executive Officer
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.
Contacts:
Vanoil Energy Ltd.
Malcolm Burke
604-689-1515 x 108
Vanoil Energy Ltd.
Don Padgett
604-689-1515 x 104