Vanco Increases Its Commitment Offshore Côte d’Ivoire - Buys Xpronet’s Interest in CI-112

HOUSTON May 17, 2001 - Vanco CI-112 Ltd., a subsidiary of Vanco Energy Company, has acquired Xpronet Inc.’s 13.5% interest in Block CI-112 offshore Côte d’Ivoire. The transaction increases the equity interest of Vanco (operator) to 90%, with a 10% interest retained by state-affiliated oil company, PETROCI.

In February, PETROCI approved Vanco’s request to relinquish Block CI-109, Vanco’s other license offshore Côte d’Ivoire. Vanco opted to release CI-109 after an extensive study of 2D seismic over one year ago. The purchase of the Xpronet interest and the release of CI-109 consolidates Vanco’s interests in Côte d’Ivoire into Block CI-112, a 1.2 million-acre deepwater tract in the country’s westernmost offshore sector.

The block features a large Albian structure with striking similarities to Ranger’s recent discovery on Block CI-40. Says Vanco’s President Gene Van Dyke, ”We’re very encouraged by the early reports of Ranger’s successful well on CI-40. Vanco’s CI-112 and Ranger’s CI-40 are similar play types, and both lie in more than 1200 meters water depth.”

Vanco is taking its first look at its 3D seismic program which was shot on CI-112. WesternGeco completed the 1,200 square-kilometer survey in mid-March, and Vanco has just loaded the first data set. A well could be drilled by year end 2003. In addition to activity on CI-112, VANCO is looking at other opportunities in the Gulf of Guinea. In February, the company hired former PETROCI Director General Gilbert Yougoubaré to strengthen its presence in Côte d'Ivoire and neighboring countries, and to develop interest in any available deepwater acreage in that region.

Houston-based Vanco Energy Company specializes in exploring and developing oil and gas in deep water, and is a leading deepwater acreage holder offshore Africa. In addition to Côte d’Ivoire, the company holds licenses offshore Equatorial Guinea, Gabon, Madagascar, Morocco, Namibia and Senegal. Xpronet Inc. is a private exploration and production company incorporated in the Cayman Islands, and based in Houston, Texas. The company currently operates exploration blocks in Central Europe, East Africa and South Asia.

Contact: Janice Van Dyke Walden, Vanco, tel: 713-877-8544, jwalden@vancoenergy.com

The Corporate Council on Africa 1100 17th Street, N.W., Suite 1100 Washington, DC 20036 Tel: (202) 835-1115 Fax: (202) 835-1117 E-mail: