Africa Oil Corp.
Interimsrapport

AFRICA OIL 2017 THIRD QUARTER FINANCIAL AND OPERATING RESULTS

November 14, 2017 (AOI–TSX, AOI–Nasdaq-Stockholm) … Africa Oil Corp. (“Africa
Oil” or the “Company”) is pleased to announce its financial and operating
results for the three and nine months ended September 30, 2017. 

As at September 30, 2017, the Company had cash of $423.9 million and working
capital of $443.1 million as compared to cash of $463.1 million and working
capital of $435.0 million at December 31, 2016. During the second quarter of
2017, further to the previously announced farmout agreement (press release 4th
February 2016), the Company and Maersk agreed to payment terms related to the
$75.0 million advance development carry. Africa Oil is due to receive equal
quarterly payments of $18.75 million at the end of each calendar quarter during
2018. These proceeds were recognized in accounts receivable ($56.2 million
current and $18.8 million long term) and intangible exploration assets during
2017. 

The 2017 exploration and appraisal drilling campaign in Blocks 10BB and 13T
(Kenya) concluded subsequent to the end of the third quarter, following the
drilling of the Amosing-7 appraisal well. The PR Marriott Rig-46 has been
demobilized. Two discoveries were made during the campaign. 

In January 2017, the Erut-1 well resulted in a discovery, proving that oil has
migrated to the northern limit of the South Lokichar basin. The second
discovery was made during May 2017, at Emekuya-1, encountering significant oil
sands, demonstrating oil charge across an extensive part of the Greater Etom
structure and further de-risking the northern area of the basin. 

The Etiir-1 exploration well, which targeted a large, shallow, structural
closure immediately to the west of the Greater Etom structure, spudded in late
June and was unsuccessful with no material reservoir development or shows
encountered.  Although dry, drilling results will be utilized in defining the
westerly extent of the Greater Etom Structure. The Etiir-1 well has been
plugged and abandoned. 

The Ekales-3 well was drilled to a total measured depth of 2,721 meters and
finished drilling during the third quarter of 2017. The well targeted an
undrilled fault block adjacent to the Ekales field. While reservoir and oil
shows were encountered, and oil sampled, the well was deemed non-commercial. 

Multiple appraisal wells have been drilled in the Ngamia, Amosing and Etom
fields during 2017: Ngamia-10 (65 meters of net oil pay), Amosing-6 (35 meters
of net oil and gas pay), Amosing-7 (25 meters of net oil and gas pay) and
Etom-3 (25 meters of net oil and gas pay). An extensive wireline evaluation
program, including sampling has been undertaken on all appraisal wells. The
Ngamia-10, Amosing-6 and 7 and Etom-3 wells have all improved the definition of
the limits of their respective fields. However, the presence of rift edge
facies has limited their net pay. These drilling results will be incorporated
into the geological models that will be utilized for potential fields
development plans. 

The Auwerwer and Lokone reservoirs in the Etom-2 well were tested utilising
artificial lift and flowed at 752 bopd and 580 bopd respectively which was
lower than anticipated. As a result, the Joint Venture Partners will undertake
further technical work to assess how representative the tests may have been and
identify potential options to increase flow rates from the Etom field. 

Activity will now move to focus on collecting dynamic field data through
extended production and water injection testing. The Ngamia-11 appraisal well
(143 meters of net oil pay) has been completed and will be utilized in a
waterflood pilot test planned for the first half of 2018. The waterflood pilot
will include the previously drilled Ngamia 3, 6 and 8 wells. This pilot is
designed to deliver a long-term assessment of the rate of enhanced oil recovery
that may be expected as a result of water injection. The waterflood pilot
follows up the successful water injection testing program which was completed
during the first half of 2017 on the Ngamia and Amosing fields. Additionally,
the partnership aims to initiate extended well testing on wells in the Amosing
and Ngamia fields, commencing in the first quarter of 2018. Produced oil from
testing will be stored and is planned to be transported as part of the Early
Oil Production Scheme (EOPS). This scheme will initially entail the evacuation
of stored crude oil to Mombasa by road, and first production from EOPS is now
expected to commence in the first half of 2018, subject to receiving the
necessary consents and approvals. 

In addition to the drilling and operational activities to support the Final
Investment Decision (“FID”) for the Kenya Full Field Development, engineering
studies and contracting activities are under way in preparation for the start
of the Front End Engineering Design (“FEED”), which are expected to take place
during 2018. The Joint Venture Partners are continuing optimization of the
development plans that will allow field and pipeline infrastructure to move
forward while limiting upfront capital spend. 

A Joint Development Agreement (“JDA”), setting out a structure for the
Government of Kenya and the Kenya Joint Venture Partners to progress the
development of the export pipeline, was signed on 25 October 2017. The JDA
allows important studies to commence such as FEED, Environmental and Social
Impact Assessments (“ESIA”), as well as studies on pipeline financing and
ownership. 

Africa Oil Corp. has a 25% working interest in Blocks 10BB and 13T with Tullow
Oil plc (50% and Operator) and Maersk Olie og Gas A/S (25%) holding the
remaining interests. 

During this period the partnership informed the Government of Kenya of its
intention to enter the Second Additional Exploration Period on Block 10BA. 



About Africa oil

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 November
14, 2017 at 2:30 p.m. Pacific Time. 



FORWARD LOOKING INFORMATION

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:  Sophia Shane, Corporate Development
(604) 689-7842. 

---

For the complete release and report see attached file.