Vanco Awarded License Area 1711 Offshore Namibia

HOUSTON - June 14, 2000 Vanco Energy Company, through its subsidiary Vanco International Ltd., has signed a Petroleum Agreement with the Government of Namibia for License Area 1711 offshore Namibia. This is the first license awarded since Namibia converted to an Open Bidding System last year, and is the only License in offshore Namibia except Kudu in the southern part.

The License covers 8,931 square kilometers (2.207 million acres), and is situated in the Namibe Basin off the northern coast of Namibia on the international boundary with Angola. Although some of License Area 1711 lies onshore, the primary area of interest lies offshore in water deeper than 200 meters (see attached map).

Early seismic covering the northern sector of the block shows at least one huge structure, probably Cretaceous in age. Vanco intends to acquire more 2D and 3D seismic during the initial two-year period, and has the option to pursue an exploration period consisting of 2D and one well in the second two-year period.

"License Area 1711 has many of the geological characteristics of the deepwater basins in neighboring Angola which have produced a number of major discoveries," says Vanco's President Gene Van Dyke.

Interest in License Area 1711 is shared by Vanco (88%), The National Petroleum Corporation of Namibia (Namcor) (9%), and Pamue Investment Corporation (3%), with Vanco being the operator.

The License Area 1711 award ties into Namibia's and Angola's mutual interest in the Namibe Basin, which extends into Angola, and which has never been tested on either side of the border. Namcor and Sonangol, the national oil company of Angola, are conducting a joint study to develop common plays for future exploration. When completed, results of the study will be jointly presented to the international oil community.

As Operator, Vanco will establish an office in Windhoek, headed by Mr. Klaus Endresen. Vanco is a US-based independent with activity offshore The Netherlands and West Africa. The company ranks as the leading deepwater acreage holder in West Africa with licenses in Gabon, Morocco, Côte d'Ivoire, Senegal and Equatorial Guinea. Namibia's License Area 1711 brings the company's net acreage holdings to 20 million acres.

Vanco plans to conduct a regional 3-D seismic program later this year on all of its licenses where it operates, including Namibia's License Area 1711.

CONTACT:

Janice Walden 713-877-8544; Klaus Endresen, General Manager, Vanco Namibia: klendre.bridge@mweb.com.na, tel. + 264 61 230526, fax + 264 61 230528