Vanco Condemns Cancellation of Prykerchenska Production Sharing Agreement

HOUSTON, May 21 /PRNewswire/ -- Vanco Energy Company (Vanco) condemns the decision reached by Ukraine's Cabinet of Ministries to unilaterally and arbitrarily cancel the Company's Prykerchenska Production Sharing Agreement.

In 2007, Vanco was awarded this PSA through a fair, open and transparent selection process. The rigorous selection process involved four different Ukrainian cabinets of ministries and Vanco's bid received the full support of Ukraine's president.

"It is unfortunate and regrettable that Prime Minister Tymoshenko has decided to cancel a legally binding and internationally recognized agreement," said Vanco's Chairman and President Gene Van Dyke. He added that, "Vanco is committed to working together with the Ukrainian government in order to resolve this dispute in a timely and equitable manner."

If necessary, however, Vanco is prepared to defend its rights to the fullest extent of the law.

Dedicated to international deepwater exploration since 1996, Vanco has successfully operated drilling programs offshore Morocco and Cote d'Ivoire in the last three years. The Houston independent has deepwater exploration programs offshore Gabon, Equatorial Guinea, Ghana and Cote d'Ivoire.

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Source: Vanco Energy Company

CONTACT: Joshua Dupuy, +44 (0) 207 182 4033, or Joseph Shwirtz,
+1-201-461-7850, both for Vanco Energy Company

2008-05-21 19:11:57 0368321 PRNEWSWIRE