Vanoil Energy Ltd announces that its wholly owned subsidiary, Avana Petroleum Limited, has received a default notice under the joint operating agreement in respect of Seychelles Areas A and B, due to non-payment of its share of joint account expenses in the amount of USD $732,755 plus interest.
In a statement by the chairman of Vanoil Energy on behalf of the board James Passin says Avana has not remedied the default within the time period required under the JOA, and is currently in discussions with East African Exploration (Seychelles) Limited (“EAX”) with respect to an extension of the payments.
Vanoil holds a 25% working interest in Seychelles Areas A and B with its partner Afren. Areas A and B comprise 14,319 km2 in total and are located on the Seychelles micro-continent in shallow to deep water in the northern half of the Seychelles plateau in a region.
Amoco previously drilled three exploration wells in the area where all of which encountered oil shows and, along with the presence of multiple seeps and tarballs, confirms the presence of a working hydrocarbon system.