Vanoil Energy Ltd. has entered into a non-binding heads of terms to potentially acquire the entire issued and to be issued share capital of Avana Petroleum Limited (Avana) from its shareholders (the "Sellers") on a cash-free debt-free basis (the "Acquisition").

Highlights:

• Non-binding heads of terms agreed for the Acquisition in a cash-free-debt-free share transaction • If completed, will deliver a 10% interest in Kenya offshore block L9 with its partners Ophir and FAR Limited and a 25% interest in Seychelles Areas A and B with its partner Afren plc • Supports Vanoil's vision of becoming an emerging leader in East African oil and gas exploration • Brings geological and geopolitical diversification to the existing onshore Vanoil portfolio • Increases, at completion, Vanoil's net recoverable mean unrisked prospective resources from 927 million boe to well over two billion boe • Accelerates Vanoil's exploration program, with two 3D seismic surveys and at least four drilling events scheduled for 2013 alone

Tags: Vanoil Energy