Mr. James Passin reports

VANOIL ANNOUNCES CORPORATE RESTRUCTURING

Vanoil Energy Ltd.'s board of directors has instructed management to conduct an immediate review of all company operations. The priority goal is to eliminate non-essential costs, dispose of non-productive assets and secure sufficient financing to enable Vanoil to aggressively pursue its legal arbitration claims against the Republic of Kenya.

Donald Padgett, interim president and chief executive officer, noted: "The immediate response of management in implementing our new directives is greatly appreciated. We believe our new plan will quickly reduce monthly costs by over 75 per cent and allow the company to focus on reaching a full and fair settlement with the Republic of Kenya for the loss of money, time and opportunity experienced by the company over the past several years."

We seek Safe Harbor.