VANGOLD SEEKS OIL EXPLORATION LICENCE IN RWANDA
By Hereward Holland

Reuters
Thu Jul 2, 2009 6:26am EDT

Canada-based firm wants to explore Lake Kivu

Initial surveys show 400 sq km basin

KIGALI, July 2 (Reuters) – Canada-based Vangold Resources (VAN.V)
is seeking oil and gas exploration rights for Rwanda’s Lake Kivu
following successful air and satellite surveys.

The landlocked central African country has agreed to enter discussions
for a Special Hydrocarbon Exploration License (SHEL) in the 1,631
sq km Kivu Graben basin, Vangold said in a statement seen by Reuters
this week.

Dal Brynelsen, Vangold president, said he was pleased with initial
geochemical, geophysical and other technical data on the lake which is
shared with Rwanda’s volatile neighbour, Democratic Republic of Congo.

"Based on the partially completed 2008 gravity and magnetic survey, we
have identified a 400 square km basin under Lake Kivu," Brynelsen said.

"We want to increase our Rwandan exploration activities and look
forward to working closely with the Rwandan government."

Lake Kivu is a southern extension of Uganda’s Albertine rift where
Tullow Oil plc (TLW.L) and Heritage Oil (HOIL.L) have made major oil
and gas discoveries. [ID:nL1874248] The Rwandan government granted
Vangold exclusive rights to assess hydrocarbon and petroleum potential
on the Rwandan portion of Lake Kivu in October 2007.

In February this year, Rwanda’s Energy Minister Albert Butare said
the quantity and quality of the oil was unknown. [ID:nLA751237]
However, the crude discovered in Uganda’s Albertine Graben, which
shares similar geological features, has been described as heavy or
"waxy", posing logistical problems for transportation to the coast.

The energy minister was not immediately available for comment on the
proposed exploration contract.

Vangold is also exploring potential oil and gas projects in the United
States, Armenia and Kenya, according to the company’s website.