Friday, March 2, 2007
Africa may add another oil producer to its club if the southwestern Ugandan discovery plays out over the region into Rwanda, and one company is set to explore that very possibility. Vangold Resources Ltd. announced that it has been granted the exclusive rights to commence negotiations for a production sharing license for oil and gas in the north western part of Rwanda by the Minister of State in charge of Energy and Communications.
Apparently Vangold has gained access to the concession known as White Elephant. The concession covers approximately 2,708 sq km near the Ugandan border. The agreement calls for Vangold to undertake a technical review of all information available and commence negotiations for a production sharing agreement over a period of 18 months.
The proposed technical review is set to determine whether Rwanda holds the extension of the Kingfisher discovery made by Heritage Oil. Vangold’s team of petroleum geologists are confident that the Ugandan discovery could be reflected in Rwanda as an extension of the Lake district’s geology.