Ghana Signs More Petroleum Exploration Agreement

Vanco Energy Company's wholly owned subsidiary, Vanco Ghana Ltd., has signed a Petroleum Agreement with the Government of the Republic of Ghana, represented by the Minister of Energy, and the Ghana National Petroleum Corporation (GNPC) for the Cape Three Points Deepwater Block offshore Ghana, West Africa.

Vanco, as operator, committed to the 2.5-million-acre block in a signing ceremony in the capital city of Accra today. The agreement had been ratified by Ghana's Parliament on July 12, 2002. GNPC has a 15% interest, with Vanco owning the remainder.

The Cape Three Points Deepwater Block that covers the rest of the deepwater Tano and Cape Three Points area ranges in water depths from 100 meters to 3000 meters, with principal interest in the deep water from 1000 meters to 3000 meters.

Located in the Gulf of Guinea's Tano-Cape Three Points Basin, Cape Three Points Deepwater Block is distinguished by a number of anticlinal structures of Cretaceous age, and is near recent oil and gas discoveries made by Dana and GNPC.

Vanco begins fulfilling the agreement immediately: American International Exploration Group, Inc. has been contracted to shoot approximately 2,220 kilometers of 2D seismic, and plans to begin by early September.