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Vangold Resources Signs Deal For Concession in Rwanda
04-16-2008
Vangold Resources Ltd has
confirmed that the Minister of State in charge of Energy and Communications,
Republic of Rwanda, has granted to Vangold the exclusive rights to commence
negotiations for a production sharing license for oil and gas in the north
western part of Rwanda.
The concession, known as White Elephant, is 2,708 sq kms in area and represents
11% of the landmass of Rwanda.
With the discovery of oil in southwestern Uganda by Heritage Oil Corporation, a
technical review will determine whether Rwanda has the extension of that
discovery. The agreement now calls for Vangold to undertake a technical review
of all information available and commence negotiations for a production sharing
agreement over a period of 18 months.
The technical review will cover the northwestern part of Rwanda, the block named
White Elephant by Vangold, which is part of the Albertine Graben where oil was
discovered in Uganda. Vangold's team of petroleum geologists (located in
Nairobi, Kenya) is confident that the Uganda discovery could be reflected in
Rwanda as an extension of the Lake district's geology. Tullow Oil and Heritage
Oil have reported their latest well in this basin is flowing 4,100 bopd.
During the signing ceremony, Rwanda's Minister of State for Energy and
Communications, Eng Alberta Butare, stated that Rwanda is committed in the long
term to explore for hydrocarbon potential. Currently, the country has
significant reserves of methane gas in the Lake Kivu area, which is being
developed commercially. Upon completion of the technical review and concluding
negotiations with Vangold, the government may consider participating in the
exploration phase.
Present at the ceremony were representatives from Vangold, Joseph Katarebe and
Idi Kawadi. When asked the significance of White Elephant by Ms. Anthe Vrijandt,
Expert External Links at the Ministry, Mr. Kawadi responded by saying, "The
country's part of the East African Rift Valley Basin lies on a downhill trend
and we expect there to be a significant reservoir of oil in Rwanda's area."
In response to Minister Butare's comments, Mr. Katarebe, Vangold's country
representative, said that, "With the admission of Rwanda and Burundi in East
African Community trading bloc effective July, 2007, the company will take
advantage of technical expertise within the region. A technical team has been
mobilized from Kenya to undertake the technical review." He further stated that,
"If the company were to mobilize resources outside the region, it would take a
few months as opposed to weeks."
Vangold is an active explorer for resources and a fast growth oil producer in
North America. The exploration portfolio is extensive and it also includes
interests in international ventures and development projects.
After the technical review, Vangold will undertake development initiatives
within the area in consultation with the government and villagers. Geologically
and technically, Mr. Brynelsen met with Mr. Reuben Kashambuzi in Entebbe,
Uganda, Commissioner, Petroleum Exploration and Production Department, who
advised him that the Albertine Grabine extends southwards from Uganda into
Rwanda. With Albertine Grabene's known discovery, a 10 percent probability exits
that there is a commercial and viable discovery in Rwanda, Vangold will commit
its financial and human resources.
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