Vanco has acquired 3D seismic to define a drilling location in Block CI-401

The Transform Margin of Côte d'Ivoire and Ghana represents an exciting emerging deepwater exploration theater in West Africa. The Tano-Ivorian Basin is an exploration "sweet spot" which contains known source rocks and a proven petroleum system. Exploration drilling began in the 1890's to evaluate the extensive oil seeps known along the coast. Offshore exploration of the shallow shelf, which yielded numerous oil and gas accumulations, such as Kudu, Eland, Ibex and Tano fields, showed that traps are full to spill point, but that large structures are required for a commercial field.

Multiple Cretaceous reservoir targets are found in a variety of structural and stratigraphic trap types, ranging from back-rotated fault blocks to submarine fans associated with the canyons that cut the hinge zone as the basin filled. In the deepwater environment, these potential traps tend to be large and often characterized gas "clouds" which may directly indicate the presence of hydrocarbon resources.

Vanco has been actively involved in the search for oil and gas in offshore Côte d'Ivoire since 1999. Early 2D and 3D seismic work in the western part of the country culminated in 2005 with the drilling of the giant San Pedro Prospect in Block CI-112. Vanco operated the San Pedro-1 well on behalf of a group consisting of Chinese and Indian state supported oil companies, drilling to a total depth of 3,100 meters where the well encountered excellent quality Albian reservoir sandstones, but unfortunately failed to find commercial hydrocarbons.

Vanco's interest in the petroleum potential of offshore Côte d'Ivoire continues. Production Sharing Contracts covering Blocks CI-401 and CI-101 were executed on September 30, 2005 and 1,978 line kilometers of new 2D seismic data were acquired. These high-potential blocks contain a significant structural prospect, known as Baleine or Prospect A, which displays a significant gas "cloud."

Nearby is the Orca Prospect, a slope fan feature which is directly analogous to the recent Mahogany discovery in Ghana. A 1,029 square kilometer 3D survey was acquired in 2007 to further image the prospects and define a drilling location for 2008.

Vanco is joined in this Transform Margin exploration play by Petroci and Russian giant LUKOIL Overseas Ltd.