Canadian-based Vanoil Energy has updated information previously released about ongoing negotiations with the Kenyan Government on the extension of Vanoils Production Sharing Contracts ("PSCs") regarding Block 3A and Block 3B, onshore Kenya
The oil and gas company has begun assessing various legal remedies, it said.
In Kenya, Vanoil was negotiating to extend its interest in onshore Blocks 3A and 3B, originally acquired in October 2007, following the signing of a Production Sharing Contract (PSC) with the Kenyan government.
According to the government, these blocks cover 24,912 sq km in Kenya's Anza Basin.
“Following the discovery of hydrocarbons with oil shows in the Sala-1 well in the Anza Graben announced by Africa Oil Corp., Vanoil believes the economic value of Blocks 3A and 3B may have materially increased,” stated James Passin, chairman of Vanoil.
“While we would have preferred to proceed with the two well program approved by the Ministry of Energy, we are looking forward to vigorously pursuing all legal remedies”.
Vanoil has acquired assets across East Africa and in the Republic of Seychelles, in the western Indian Ocean.
