Vanco has resumed its role as Operator of Block K Corisco Deep 

In March 2000, Vanco signed a Production Sharing Contract with the Republic of Equatorial Guinea for Block K Corisco Deep, which covers 1.1 million acres and is located on trend with the Hess Block G discoveries in water depths ranging from 200 to 2,500 meters.

In 2001, Vanco conducted a 3,139 square kilometer 3D seismic survey over the prospective portion of Block K. The program revealed the presence of numerous prospects associated with turbidite fan complexes and salt-supported structures.

The work of Vanco’s geoscientists led Canadian independent Nexen and Spain’s Repsol to join Vanco in 2003 for the drilling of Block K, with Nexen as operator. The group drilled the first exploration well in late 2004 and a second in 2005. Both wells encountered significant oil shows of non-commercial quantities of hydrocarbons, confirming the presence of effective source rocks in the area.

After the withdrawal of Nexen and Repsol in 2006, Vanco believes re-acquired the block because it believes that additional wells are required to adequately test the numerous play concepts and prospects that are recognized throughout this high-potential block.

Therefore, Vanco and the Ministry executed a Block K contract amendment which provides for Vanco to resume its role as Operator. However, future operations will be restricted until the disputed border between Equatorial Guinea and Gabon is resolved.

In preparation for the next drilling campaign, Vanco geoscientists have resumed work to high-grade areas where reservoir rocks are well-developed.