PRESS RELEASE 26th SEPTEMBER 2003 FARMOUT OF VANCO INTERESTS, BLOCK K REPUBLIC OF EQUATORIAL GUINEA The Ministry of Mines and Energy is pleased to announce that it has approved, in principle, the farmout of 50% of Vanco Equatorial Guinea Limited’s interest in Block K. The farmout is of 25% to Nexen Petroleum Equatorial Guinea Limited, who will also take over as operator, and 25% to Repsol Exploración Guinea S.A. The farmout still remains subject to the formal approval of the Ministry of Mines and Energy of the Deed of Assignment to Nexen and Repsol. After the assignments the Block K Contractor Group will comprise:- Nexen Petroleum Equatorial Guinea Limited      (Operator)                   25% Vanco Equatorial Guinea Limited                                                          50% Repsol Exploración Guinea S.A.                                                           25% Upon commercial discovery, the State, to be represented by GEPetrol (the National Oil Company of Equatorial Guinea), has the right to back-in at the time of approval of the first development and production plan. The Production Sharing Contract for Block K was granted to Vanco on the 14th March 2000 and became effective 1st June 2000. Further information may be found on the Ministry of Mines and Energy web site at http://www.equatorialoil.com.