Africa Oil’s partner Tullow plans to raise cash

SOURCE

Tullow Oil mulls $750m rights issue to slash debt

LONDON: Britain’s Tullow Oil plans a rights issue to raise about 607 million pounds ($750 million) to slash its $4.8 billion debt burden and make investments in drilling and exploration in Latin America and Africa.

Tullow, whose founder and long-serving chief executive Aidan Heavey will hand over to Chief Operating Officer Paul McDade in April, was hit hard by the collapse in oil prices in 2014 just as it was investing heavily in an oil project off Ghana.

Under the terms of the 25 for 49 rights issue, Tullow said it would issue 466.9 million shares at 130 pence each.

“The rights issue comes as a surprise to us and possibly indicates banks were not as supportive to RBL refinancing as we were expecting,” Jefferies analyst Mark Wilson said.

Tullow, which had tightened its investment budget to $500 million this year, from $900 million in 2016, had net debt of about $4.8 billion as of Dec. 31.

The company said it would use the proceeds from the rights issue, which is being underwritten by Barclays, JPMorgan and other banks, for investments in new drilling opportunities and further exploration and appraisal programmes in offshore Ghana. The company said it also plans to invest in more exploration and appraisal activity in Kenya and fund drilling projects in Africa and South America.

Tullow also said that Cnooc Uganda had exercised its pre-emption rights to buy 50 per cent of the interests in Uganda which are being transferred to Total.

Reuters

 

EXCLUSIVE: TULLOW OIL TO DRILL AN ADDITIONAL FOUR WELLS IN KENYA

SOURCE

EXCLUSIVE: TULLOW OIL TO DRILL AN ADDITIONAL FOUR WELLS IN KENYA

Tullow Oil will be drilling an additional four wells with two of them confirmed and the rest in contingent status according to a source with information on the matter.

The operator had earlier said it would drill four wells in 2017 in the South Lokichar basin including  Erut and Etete prospects Amosing 6 and Ngamia 10 appraisal wells with the potential to extend this by a further four wells depending on the success of the initial wells.

Etom ComplexIt is unclear whether the additional wells indicate success at the Amosing 6 appraisal well currently being drilled with the Erut discovery having confirmed the potential of the northern portion of the Lokichar Basin unlocked earlier by the Etom-2 discovery.

The source adds that already the company is said to have decided on the first additional two wells which include the Emukuya prospect to the north of the South Lokichar basin while another two will be appraisal wells.

Earlier joint venture partner Africa Oil had named a number of near term prospects including: Tulya, Thilli, Linga, or Lukwa Prospects in South Kerio (Block 10BB) North Samaki & Kifaru Prospects, in the North Turkana (Block 10BA). Further north a number of Northern Prospects were said to be under evaluation including: Ebenyo, Laboria and Erut in Block 13T Ekadeli, Elim and Ekamongo in Block 10BB.

In January announced a budget of $225M of the Group’s capital expenditure to Kenya’s Pre-development, Exploration and Appraisal Expenditure this year of which $125 million is set aside for Exploration and Appraisal spend and the rest to pre-development expenditure.

 

AFRICA OIL EXITS KENYA’S BLOCK 12A

SOURCE

Africa Oil has withdrawn from Block 12A according to its fourth quarter financial and full year financial and operating results and written off $2.0 million in intangible exploration assets relating to the block.

The Block which is operated by Tullow Oil was the focus in Q1 2016 during the drilling of the Cheptuket well which according to the operator encountered good oil shows, seen in cuttings and rotary sidewall cores, across a large interval of over 700 metres.

The joint venture partners added that analysis of the well indicated the the presence of an active petroleum system with significant oil generation and represents the most significant well result to date in Kenya outside the South Lokichar basin and is thus not clear why the Canadian explorer has chosen to withdraw.

Financial results by Africa Oil further indicate that the company incurred $46.6 million of intangible exploration expenditures in Kenya for the year ended December 31, 2016 which include drilling and completion expenditures primarily relate to the Cheptuket-1 exploration well in Block 12A, the water injection testing performed on the Amosing-3 appraisal well in Block 10BB, the drilling of Erut-1 in Block 13T, as well as costs associated with demobilizing and remobilizing the PR Marriott 46 Rig and associated services.

Tullow Oil has 40 percent net working interest in the block, Delonex 40 percent and Africa Oil had 20 percent.

 

TULLOW on the road to South Lokichar decision – Feb 17

SOURCE

TULLOW on the road to South Lokichar decision

Tullow on the road to South Lokichar decision

Operator aims to keep remaining exploration programme ‘simple’ as it works towards a full field development plan in Kenya

 

Tullow Oil is now working towards full-field development of its South Lokichar basin project in Kenya, with a final investment decision anticipated before the end of 2018.

Production is expected to rise to beyond 120,000 barrels per day early next decade, according to chief operating officer Paul McDade, who was speaking to analysts last week.
Tullow’s exploration director Angus McCoss confirmed the company remained focused on a standalone pipeline export solution and that the plan was to “keep the exploration programme simple with no more complex wells”.

“We’ve been working hard on our geology and seismic,” said McCoss.
Tullow has successfully started the first of a four-well drilling programme with the Erut-1 probe and there is the potential for four more wells to be drilled. McCoss said the recent success of Erut-1 has derisked the entire northern triangle of so-called E prospects encompassing Erut, Etom, Etir, Etete, Emekuya and Ekadeli.
“We evidently have a lot more running room. Out of 12 wildcats we discovered 10 accumulations, some of which we have appraised. In Etom-2 we made our thickest and best-quality reservoir discovery, while Erut confirmed the oil charge extended to the very far northern end of the basin.”
The rig has now mobilised from Erut and has spudded an Amosing delineation well, after which it will appraise Ngamia before returning north where Tullow sees unrisked potential of 300 million barrels to add to the current resource estimate for the project of 750 million barrels.
The full-field project is deemed to be commercial at 1 billion barrels so further drilling successes in the promising northern play will help towards Tullow achieving this reserve target.

McCoss said: “The exciting thing is that these are all low-cost onshore wells, partly as a result of deflation but also because of improvements in drilling operations, and we are sure we can bring costs down further.”
McDade — soon to be chief executive once Aiden Heavey retires — said: “We’ve been assuming we can get water injection recovery but need to prove it and that’s what we’ve done at Amosing. We shall mobilise to Ngamia for more water injection tests.”

McCoss said there is a cluster of oil finds in the southern portion of Lokichar and the company aims to delineate these accumulations in support of the water injection programme.
“The Amosing well is located updip towards the basin boundary fault, looking for the transition from the higher quality outboard reservoirs to the lower quality inboard reservoirs in order the properly delineate the most productive parts of the field and reduce uncertainty before a final investment decision.”
The Ngamia appraisal well will be located on the southern flank and might possibly add a whole new oil compartment to Ngamia field volumes, said McCoss.
“But it’s the north that really interests us and we should like to drill Etete and neighbouring prospects where we hope to penetrate a new concentration of oil in and around the Etom area, perhaps even greater than Ngamia.”
McCoss said it was not a question of oil volumes or reservoir quality constraint but rather ensuring successful flow tests and water injection tests and working over the data.
South Lokichar will undoubtedly become a new centre for production in east Africa,” he said.

Read more at http://www.stockhouse.com/companies/bullboard/aoiff/africa-oil-corp?postid=25867800#SyVvCiOym5ZJ0rKY.99

 

“Kenya’s oil deposits can run her for 300 years”

SOURCE

JUST HOW MUCH oil deposits could there be in Kenya ?

According to an analysis by the prospecting companies- Tullow oil and Africa oil of Canada- perhaps enough to run the country for 300 years. Or enough to run the US for 18 months. Bloomberg reported that the two oil drillers, who first discovered oil in Kenya’s rift valley basin only last year, now say the 450 KM long basin could hold 10 billion barrels- enough to run Kenya for 300 years!

Consequently, the oil drillers are planning to drill 11 test wells in Kenya this year. And remember they are also drilling wells in Ethiopia. Like Kenya, Ethiopia was deemed a barren land as far oil production is concerned. However, now that outlook is changing with discovery of oil in Kenya’s rift valley.

oilinkenya

An oil rig at Ngamia 1 in Turkana County where Tullow discovered oil

We are running out of metaphors. Now try to figure out where the oil production in Uganda; South Sudan and Ethiopia would place Kenya. According to analysts, right in the centre of the action! In 10 to 15 years, Kenya will be “the oil hub of eastern Africa,” they say.

Why? Figure this: Uganda will soon begin production of its 1 billion barrels of oil in Lake Albert; South Sudan wants to shift her 350,000 bpd out away from Sudan and what if Ethiopia also found some oil? It will all be transported to the world through Kenya, perhaps through Lamu.

Bloomberg reported that Uganda is considering an Oil pipeline from its wells in Lake Albert in Western Uganda to a Kenya port. D.R. Congo is also said to be considering going east to export their oil through Kenya. This makes the Lapsset Corridor in Kenya, which was a mouth- watering prospect just a few months ago, a staggering one.

Toyota Tsusho, the investment arm of Toyota Motor Corporation has placed its US$5 billion bid to build an oil Pipeline from Lamu Port in Kenya to The oil wells in south Sudan with a possible extension to Uganda and Ethiopia.

And Kenya would become the energy hub of Eastern Africa. Nearly a year ago, we published an analysis on the prospect of an oil and Gas discovery in east Africa. We were upbeat then and still-for lack of better word- are. We stand by that analysis but we lack the tools to explain the exponential prospects of finding 10 billion barrels of oil in Kenya. No one has for now. Read http://eaers.blogspot.com/2012/04/oil-and-gas-wealth-in-east-africa-boon.html

A month ago, we termed the news that the oil find was commercially viable” a game changer for Kenya.” Yet we were only talking about 2850 bpd – a drop in the ocean? May be smaller. Apart from the potential macro-economic gains, the news has immense development benefits in Kenya. Among these gains are potential forex savings, low general prices and larger profits for the business sector.

According official sources, in the year to November 2012, Kenya spend a staggering US$2.105 billion importing 21.7 million barrels of crude oil. Although the commercially viable output is still a drop in the ocean, the prospect of cutting this this bill significantly is exciting to Kenyans.

In January, the Oil industry intelligence publication; oil.com, www.oil.com branded Kenya a hot spot for oil exploration. It seems now the spot will get fiery as more aggressive drilling activity sets in in the near future.

The gains of oil will begin long before Kenya produces the first barrel, three years down the road. A local business publication reported last November that oil and Gas exploration brought in US$1.2 billion in FDI. This figure is expected to rise as more players are expected to bid for a piece of the action. Nineteen exploration blocks are said on the table for auctioning this year.

The rules of the game too have changed as Kenya plans to gains more from oil exploration activities. To qualify for award of exploration rights, firms applying for new acreage from this month will be required to commit to spending $28.2 million in the initial two years onshore and $31.2 million offshore in the first three years.

A new term sheet by the Ministry of Energy details the minimum work and exploration obligations, the mechanism for firms to recover money spent on exploration if commercial oil discoveries are made and profit sharing with the government. Energy Permanent Secretary Patrick Nyoike said production-sharing contracts (PSCs) will be signed with firms that agree to pay $1 million as one-off commitment fee for an exploration area.

In addition to savings and FDI generation, the oil prospect raises the potential of some projects that were treated with muted pessimism. The greatest beneficiary of this development will definitely be LAPSSET corridor.

The US$23 billion Lamu Fort – South Sudan- Ethiopia Transport Corridor (Lapsset), is the biggest business venture ever to be undertaken in east Africa and probably beyond. It is a combination of five ventures that were juicy even before the discovery of Oil in the project’s path. Now they will be mouthwatering as the returns are attractive ranging between 14 per cent and 24 per cent for some of the projects.

Lapsset was meant to serve an estimated 100 million People in Northern Kenya, Ethiopia and South Sudan comprises of: 1,710 KM of standard Gauge railway line; 880 KM of a standard highway, 1260 KM of crude oil pipeline, 980KM of white oils pipeline, a 120,000 bpd refinery and a 32 berths sea port and two international airports. But it appears set to extend beyond its current borders- at least, the railway line and the oil pipeline.

Source: http://eaers.blogspot.com/2013/03/kenyas-oil-deposits-can-run-her-for-300.html

 

Africa Oil Announces Oil Discovery on Erut Prospect in Kenya!

SOURCE

 

Information posted is accurate at the time of posting, but may be superseded by subsequent press releases.
Jan 17, 2017

Africa Oil Announces Oil Discovery on Erut Prospect in Kenya

VANCOUVER, BRITISH COLUMBIA–(Marketwired – Jan. 17, 2017) - Africa Oil Corp. (“Africa Oil”, “AOC” or the “Company”) (TSX:AOI)(OMX:AOI) is pleased to announce that the Erut-1 well in Block 13T, Northern Kenya, has discovered a gross oil interval of 55 meters with 25 meters of net oil pay at a depth of 700 meters. The overall oil column for the field is between 100 and 125 meters. Potential exists for additional pay but will need to be confirmed by laboratory analysis.

The objective of the well was to test a structural trap at the northern limit of the South Lokichar basin. The Erut-1 well was drilled ten kilometers north of the Etom-2 well and shares important characteristics. Fluid samples taken and wireline logging all indicate the presence of oil. Erut-1 successfully shows that oil has migrated to the northern limit of the South Lokichar basin and has de-risked multiple prospects in this area which will now be considered as part of the Partnership’s future exploration and appraisal drilling program.

The PR Marriott Rig-46 drilled the Erut-1 well to a final depth of 1,317 meters and will now move to the southern part of Block 10BB where it will spud the Amosing-6 appraisal well.

Africa Oil CEO Keith Hill commented, “We are very pleased with this result which further confirms the potential of the northern portion of the Lokichar Basin unlocked by the Etom-2 discovery. We are very keen to expand our current drilling program to test additional prospects in the area which have now been de-risked by this discovery. Increasing discovered volumes will further enhance the development and pipeline project planning currently moving forward.”

Africa Oil Corp. has a 25% working interest with Tullow (50%) and Maersk Oil (25%) holding the remaining interest.

About Africa Oil Corp.

Africa Oil Corp. is a Canadian oil and gas company with assets in Kenya and Ethiopia. The Company is listed on the Toronto Stock Exchange and on Nasdaq Stockholm under the symbol “AOI”.

Additional Information

The information in this release is subject to the disclosure requirements of the Company under the EU Market Abuse Regulation and the Swedish Securities Market Act. This information was publicly communicated on January 17, 2017 at 2:00 a.m. Eastern Time.

Forward-Looking Statements

Certain statements made and information contained herein constitute “forward-looking information” (within the meaning of applicable Canadian securities legislation). Such statements and information (together, “forward looking statements”) relate to future events or the Company’s future performance, business prospects or opportunities. Forward-looking statements include, but are not limited to, statements with respect to estimates of reserves and or resources, future production levels, future capital expenditures and their allocation to exploration and development activities, future drilling and other exploration and development activities, ultimate recovery of reserves or resources and dates by which certain areas will be explored, developed or reach expected operating capacity, that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management.

All statements other than statements of historical fact may be forward-looking statements. Statements concerning proven and probable reserves and resource estimates may also be deemed to constitute forward-looking statements and reflect conclusions that are based on certain assumptions that the reserves and resources can be economically exploited. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as “seek”, “anticipate”, “plan”, “continue”, “estimate”, “expect, “may”, “will”, “project”, “predict”, “potential”, “targeting”, “intend”, “could”, “might”, “should”, “believe” and similar expressions) are not statements of historical fact and may be “forward-looking statements”. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. The Company believes that the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon. The Company does not intend, and does not assume any obligation, to update these forward-looking statements, except as required by applicable laws. These forward-looking statements involve risks and uncertainties relating to, among other things, changes in oil prices, results of exploration and development activities, uninsured risks, regulatory changes, defects in title, availability of materials and equipment, timeliness of government or other regulatory approvals, actual performance of facilities, availability of financing on reasonable terms, availability of third party service providers, equipment and processes relative to specifications and expectations and unanticipated environmental impacts on operations. Actual results may differ materially from those expressed or implied by such forward-looking statements.

ON BEHALF OF THE BOARD

Keith C. Hill, President and CEO

FOR FURTHER INFORMATION PLEASE CONTACT:

Africa Oil Corp.
Sophia Shane
Corporate Development
(604) 689-7842
africaoilcorp@namdo.com
www.africaoilcorp.com
 

Tullow Oil plans more drilling in Kenya

SOURCE

Tullow Oil plans more drilling in Kenya

Company behind plans to build a crude oil pipeline from Kenya to the coast.
By Daniel J. Graeber Follow @dan_graeber Contact the Author   |   Jan. 17, 2017 at 6:00 AM
Tullow Oil said it plans more drilling in northern Kenya after a recent discovery of oil. Photo courtesy of Tullow Oil.

LONDON, Jan. 17 (UPI) – Africa-focused Tullow Oil said it plans more drilling after it made an oil discovery inland Kenya that’s likely tied into existing hydrocarbon finds.

The company said it ran through a column of oil measuring a net 80 feet thick at its Erut-1 well in the northern part of Kenya. Tullow said that early data show the discovery extends the known limits of another discovery nearby, Etom.

“Further exploration drilling of this area is now being planned,” Angus McCoss, an exploration director for Tullow, said in a statement.

Tullow found good samples of oil in the cores taken from a well in the so-called Cheptuket-1 well in the Kerio Valley basin in northern Kenya last year. Dubbed a wildcat well, or a frontier area not previously known to contain oil, the company said it was its most significant find yet in the region.

The company in late 2014 came up empty-handed while drilling into similar frontier basins in northern Kenya, despite early optimism. Nevertheless, Tullow said Kenya remains one of the bright spots in its portfolio, with an estimated 750 million barrels of oil equivalents in recoverable reserves.

Kenya aims to build a crude oil pipeline to the coast with the help of Tullow Oil and its partners, Africa Oil and Maersk Oil. Studies on engineering and development of that pipeline are expected at some point during the first half of the year.

The company last year was plagued by equipment and legal issues at some of its prime holdings in Africa. The compounding strains of lower crude oil prices in 2016 forced the company to cut its spending plans, though in October it secured $345 million from lenders to help cover some of its debt, support it said would clear up some space for refinancing in 2017.

 

AFRICA OIL ERUT EARNINGS BEFORE END OF JANUARY – CEO

Via Stockhouse.com:

Translated article from Sweden – Results by end of month

AFRICA OIL ERUT EARNINGS BEFORE END OF JANUARY – CEO

STOCKHOLM (AFX) Drilling results of the Kenyan Erut-well is expected before the end of this month.

It says Africa Oil CEO Keith Hill in an interview with the news agency Direkt.

“We should have the results by the end of the month,” he says.

Keith Hill plays down the information circulating on social media through a TV clip in which a Kenyan cabinet secretary says it already noted “good results” on Erut-drilling.

“It is too early to say anything, neither one way or the other, because we are still drilling and we have not seen the logs yet. It would be misleading to say something else, then we have to see the logs first. It has happened before we have had encouraging indications, and then we have yet drilled dry in the end, “says Africa Oil chief.

Further drilling on the front is expected appraisal wells Amosing Ngamia in February and in March, while exploration drilling Etete start in April, allows the CEO to understand.

Keith Hill believes that it is probable that the Company 2C reserves will be raised from the current 766 million barrels to 1 billion by the end of the year.

“I think it is likely that we will cross the threshold of 1 billion barrels at the end of 2017,” he says.

The first Kenyan oil production is expected to take place in April this year with around 2,000 barrels per day and will be transported by truck helper. It is about the same answer as before.

Investment expenditure, capex for Lundin company in 2017 is estimated at about $ 60 million based on the basic assumption of 4 wells this year, according to the CEO.

Africa Oil has sufficient cash to be self-financing until the full-scale production in 2021, according to Keith Hill. However, he believes that the company is sold before then.

“Although we would like to be independent, I think it can be difficult, because we would be a very attractive acquisition targets by the end of 2017 or the first half of 2018. This is assuming that we are developing as planned and if oil prices rise further,” says Keith Hill and believes that the acquisition temperature generally is going up in the oil sector.

Regarding oil prices, he believes that there is only one direction for the price at the moment, and that is up.

“Anything over $ 50 a barrel are good for us, and anything over 70 is really good. I think we have $ 70 by the end of 2017,” he says apropos of oil prices.

Regarding the financing of the pipeline from South Lokichar to the port town of Lamu are still different scenarios – from the company to pay its share of 25 percent of the pipeline to nothing at all of the estimated total cost of approximately $ 2.2 billion.

“I still think we can get down to 10-15 percent. It said that there are parties interested in buying into the pipeline.”

Keith Hill has not given up hope of a common pipeline expansion between Uganda and Kenya. However, the most likely outcome a single Kenyan pipeline, according to CEO.

Monday’s deal in which the French oil giant Total buys into Tullow Oil’s Ugandan assets Welcomes Lundin boss:

“It is good for us. It means that the pressure on Tullow’s balance sheet is reduced and now will focus more clearly on Kenya from Tullow’s side, which favors us.”

On the acquisition front, the associated company Energy Africa, as Africa Oil controls a significant part, been quite active recently – and more acquisitions are sure to follow according Lundin boss:

“Do not be surprised if we get some more business soon.”

Keith Hill think that the valuation of Africa Oil is ?? and believe that it can at least be doubled in future.

“If you look at our numbers and if people really become aware of our assets, while the price of oil stabilizes, you can share easily double”.

http://www.bolagsfakta.se/nyheter/africa-oil-resultat-erut-innan-utgangen-av-januari-vd




Read more at http://www.stockhouse.com/companies/bullboard/aoiff/africa-oil-corp?postid=25687000#tI1kJ7FiqFcB43po.99

 

AFRICA OIL ANNOUNCES COMMENCEMENT OF DRILLING ON ERUT PROSPECT IN KENYA

SOURCE

Information posted is accurate at the time of posting, but may be superseded by subsequent press releases.
Dec 19, 2016

Africa Oil Announces Commencement of Drilling on Erut Prospect in Kenya

VANCOUVER, BRITISH COLUMBIA–(Marketwired – Dec. 19, 2016) - Africa Oil Corp. (TSX:AOI)(OMX:AOI) (“Africa Oil”, “AOC” or the “Company”) is pleased to announce the resumption of drilling on Block 13T in Kenya. The Erut-1 well, which spudded on December 18th, is located on a large structural feature in the northern part of the South Lokichar basin and is intended as a follow up well to the successful Etom-2 well which discovered 102m of net pay that had some of the best reservoir characteristics seen to date in the basin. This is the first well in a firm four well program, with the potential for an additional four contingent follow on wells, which is expected to continue through the first half of 2017.

Africa Oil CEO Keith Hill commented, “We are excited to get back to drilling and particularly interested in the first two wells in the program which will test exploration prospects in the northern portion of the Lokichar Basin opened up by the Etom discovery. These wells, and the follow up appraisal wells at Amosing and Ngamia, are important steps in moving the Lokichar development project forward.”

About Africa Oil Corp.

Africa Oil Corp. is a Canadian oil and gas company with assets in Kenya and Ethiopia. The Company is listed on the Toronto Stock Exchange and on Nasdaq Stockholm under the symbol “AOI”.

Additional Information

The information in this release is subject to the disclosure requirements of Africa Oil Corp. under the EU Market Abuse Regulation and the Swedish Securities Market Act. This information was publicly communicated on December 19, 2016 at 6:30 a.m. Pacific Time.

Forward-Looking Statements

Certain statements made and information contained herein constitute “forward-looking information” (within the meaning of applicable Canadian securities legislation). Such statements and information (together, “forward looking statements”) relate to future events or the Company’s future performance, business prospects or opportunities. Forward-looking statements include, but are not limited to, statements with respect to estimates of reserves and or resources, future production levels, future capital expenditures and their allocation to exploration and development activities, future drilling and other exploration and development activities, ultimate recovery of reserves or resources and dates by which certain areas will be explored, developed or reach expected operating capacity, that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management.

All statements other than statements of historical fact may be forward-looking statements. Statements concerning proven and probable reserves and resource estimates may also be deemed to constitute forward-looking statements and reflect conclusions that are based on certain assumptions that the reserves and resources can be economically exploited. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as “seek”, “anticipate”, “plan”, “continue”, “estimate”, “expect, “may”, “will”, “project”, “predict”, “potential”, “targeting”, “intend”, “could”, “might”, “should”, “believe” and similar expressions) are not statements of historical fact and may be “forward-looking statements”. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. The Company believes that the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon. The Company does not intend, and does not assume any obligation, to update these forward-looking statements, except as required by applicable laws. These forward-looking statements involve risks and uncertainties relating to, among other things, changes in oil prices, results of exploration and development activities, uninsured risks, regulatory changes, defects in title, availability of materials and equipment, timeliness of government or other regulatory approvals, actual performance of facilities, availability of financing on reasonable terms, availability of third party service providers, equipment and processes relative to specifications and expectations and unanticipated environmental impacts on operations. Actual results may differ materially from those expressed or implied by such forward-looking statements.

ON BEHALF OF THE BOARD

Keith C. Hill, President and CEO

FOR FURTHER INFORMATION PLEASE CONTACT:

Africa Oil Corp.
Sophia Shane
Corporate Development
(604) 689-7842
www.africaoilcorp.com