VANCOUVER, BRITISH COLUMBIA — (Marketwire) — 09/14/11 — Vanoil Energy Ltd. (TSX VENTURE: VEL) (“Vanoil” or the “Company”) is pleased to announce a non-brokered private placement of up to 10,000,000 units at a price of $0.50 per unit for aggregate gross proceeds of up to $5 million. Each unit will consist of one common share and one-half of a non-transferable warrant, with a whole warrant entitling the holder to purchase one common share at a price of $0.75 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 $1.00 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 for the continued exploration and development of the Company–s properties, including a planned seismic program in Kenya and Rwanda and for general working capital purposes.
About Vanoil Energy Ltd.
Based in Vancouver, Canada, Vanoil is an internationally diversified oil and gas exploration company that has a portfolio of oil and gas assets in the African countries of Kenya and Rwanda, and in the Province of Alberta, Canada. 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 kilometres, are part of the under-explored Cretaceous Central African Rift Basin System. Vanoil has a 1,631 square kilometer oil and gas exclusive licence in the East Kivu Graben in Rwanda.
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.
Dal Brynelsen
604-684-1974
604-685-5970 (FAX)