Africa Oil Corp.
Financial Statement Release

AFRICA OIL 2014 FOURTH QUARTER AND FULL YEAR FINANCIAL AND OPERATING RESULTS

February 26, 2015 (AOI–TSX, AOI–Nasdaq Stockholm) … Africa Oil Corp. (“Africa
Oil” or the “Company”) is pleased to announce its 2014 financial and operating
results for the three months and year ended December 31, 2014. 

On the back of the successful exploration activities in Kenya during 2012 and
2013, the Company and its partners ramped up its exploration and appraisal
program in Kenya and Ethiopia.  Entering 2014, the Company and its partners had
seven drilling rigs operating in the region.  Four Tullow-Africa Oil joint
venture rigs were operating through 2014 in Northern Kenya in Blocks 10BB, 10BA
and 13T, one of which was a testing and completions unit.  Three additional
drilling rigs completed drilling operations during 2014 in Block 9 (Kenya),
South Omo Block (Ethiopia) and Blocks 7/8 (Ethiopia) and were released.  The
Company entered 2015 with four rigs operating in Kenya.  Due to the changing
focus of the 2015 work program to appraisal and development of the discovered
basin in Northern Kenya, the Africa Oil – Tullow partnership has released one
of its four rigs operating in Kenya and plans to release two additional rigs by
the end of the second quarter of 2015. 

The focus of the work program in 2014 was drilling out the remaining prospect
inventory in the discovered basin in Northern Kenya, appraising existing
discoveries, drilling new basin opening wells and progressing the development
studies towards project sanction for the discovered basin in Northern Kenya. 
During 2014, the Company participated in 23 wells of which 17 wells were
exploration and appraisal wells in the discovered basin in Northern Kenya, 1
was an appraisal well in the Cretaceous Anza rift, and 5 were exploring new
basins in Kenya and Ethiopia. 

In light of the current and forecast short term oil price environment, the
Company has worked closely with Tullow to focus the 2015 work program and
budget on advancing the discovered basin development in Blocks 10BB and 13T
(Kenya) by undertaking activities aimed at increasing resource certainty and
progressing development studies with the intent of submitting a Field
Development Plan (“FDP”) around the end of 2015.  The 2015 work program will
include multiple appraisal and exploration wells in the discovered basin,
Extended Well Tests (“EWT’s”) in the Amosing and Ngamia fields and reservoir
and engineering studies (including extensive core analysis).  In addition, the
Africa Oil – Tullow joint venture will continue to work closely with the
Government of Kenya and the Uganda Upstream partners to advance the regional
oil export pipeline. 

Outside of the discovered basin in Northern Kenya, the Africa Oil – Tullow
joint venture new basin opening exploration program includes the Engomo-1 well
in Block 10BA (Kenya) currently drilling and potentially the Cheptuket well in
Block 12A (Kenya), a PSC commitment well that needs to be drilled before
September 2016.  Outside of the Africa Oil – Tullow joint venture blocks, the
2015 work program is focused on the Rift Basin Area Block in Ethiopia where a
2D seismic program of a minimum 400 kilometer land and lake survey has just
commenced acquisition. 

Africa Oil entered the fourth quarter of 2014 with US$273 million in cash and
US$149 million of net working capital. At December 31, 2014, the Company had
cash of $161 million and net working capital of $11 million. Subsequent to year
end, the Company completed a brokered private placement issuing an aggregate of
57,020,270 common shares at a price of SEK 18.50 per share for gross proceeds
of SEK 1,054,874,995 (approximately $125 million equivalent on the date the
private placement was announced). An agent’s fee of 4% of gross proceeds was
paid to the bookrunners. 

The Company has completed the following significant exploration activities and
transactions in, and subsequent to, the fourth quarter of 2014; 

  -- In October, the Company announced the results of the Kodos-1 basin opening
     exploration well drilled in the Kerio Basin in Block 10BB (Kenya).  The
     well encountered hydrocarbon shows, which indicates the presence of an
     active petroleum system.  This is the first well in the Kerio basin,
     northeast of the discovered basin in Kenya, and it appears to have been
     drilled in an area of unfavorable reservoir development, near the basin
     bounding fault.  Due to the encouraging hydrocarbon shows, consideration is
     being given to drilling an additional exploration well in the basin during
     2015.
  -- In October, the Company announced the results of the Ekosowan-1 exploration
     well located in Block 10BB, 12 kilometers southeast and updip of the
     Amosing oil discovery.  The well encountered a 900 meter column of near
     continuous oil shows throughout an interval of tight sands which also
     appear to be as a result of drilling too close to the basin bounding fault.
     A downdip appraisal well between the Amosing field and this potential updip
     sealing location is being planned for 2015.
  -- In October, the Company drilled the Ngamia-4 appraisal well located 1.1
     kilometers west of the Ngamia-1 discovery.  The well encountered up to 120
     meters of hydrocarbon pay, of which up to 80 meters was oil.  This well has
     been suspended for use in future appraisal and development activities. 
     Four additional appraisal wells are planned in the Ngamia field area,
     including the Ngamia-5 well, which is currently drilling.
  -- In October, the Company announced the results of the Sala-2 appraisal well,
     which was drilled updip from the Sala-1 well.  Sala-2 failed to find
     significant hydrocarbons as there appears to be a stratigraphic or
     structural separation between the two wells.  The Company is reviewing
     additional potential appraisal targets as well as on trend prospects in the
     block which has proven oil and gas generation.
  -- In November 2014, the Company drilled the Ngamia-5 appraisal well located
     500 meters northeast of the Ngamia-1 discovery well in a different fault
     compartment and encountered 160 to 200 meters net oil pay.
  -- In December 2014, the Company drilled the Ngamia-6 appraisal well located
     800 meters north of Ngamia-1 and in the same fault compartment as Ngamia-5
     and encountered up to 135 meters net oil pay.  Pressure data from the
     Ngamia-1, 3, 5 and 6 wells demonstrates connectivity between the wells at
     multiple reservoir horizons, which will be further tested with the Ngamia
     EWT.
  -- In December 2014, the Company announced the results of the Epir-1 basin
     opening exploration well drilled in the North Kerio Basin in Block 10BB. 
     The well encountered a 100 meter interval of wet hydrocarbon gas shows with
     florescence indicating the presence of an active petroleum system.  The
     hydrocarbon shows were encountered primarily in rocks not of reservoir
     quality.  Technical work in the basin will now focus on identifying a
     prospect in the basin where there is a high chance of trapping hydrocarbons
     in reservoir quality rock.
  -- In January 2015, the Company drilled the Amosing-3 appraisal well located 1
     kilometer northwest of the Amosing-1 discovery well.  The well encountered
     up to 140 meters net oil pay and proved an extension of the field. 
     Pressure data from Amosing-3 indicated connectivity in some reservoir
     horizons encountered in the Amosing-1, 2 and 2A wells.  Multi-zone
     completions were installed in December 2014 and January 2015 in the
     Amosing-1 and 2A wells and EWT operations on the field have commenced.
  -- The Company, as operator, and its partner have recently commenced acquiring
     a minimum 400 kilometer 2D seismic program over the Rift Basin Area. The
     Rift Basin Area is located north of the South Omo Block and is on trend
     with highly prospective blocks in the Tertiary rift valley including the
     South Omo Block in Ethiopia, and Kenyan Blocks 10BA, 10BB, 13T, and 12A.

  -- During 2014, the Company and its partners continued to actively acquire and
     process seismic data in Blocks 12A, 10BA, 10BB and 13T in Kenya.  In Block
     12A, a 674 kilometer 2D seismic program was completed in the first quarter
     2014.  In Block 10BB, a 750 kilometer North Kerio Basin 2D seismic program
     was completed in the first quarter 2014.  In Blocks 10BA, 10BB and 13T a
     600 kilometer 2D seismic program over the North Lokichar and Turkwell
     basins was completed in the fourth quarter 2014.  In Blocks 10BB and 13T,
     the acquisition of a 951 square kilometer 3D seismic survey over the series
     of significant discoveries along the western basin bounding fault in the
     discovered basin in Northern Kenya completed in the fourth quarter 2014 and
     the full fast track processed data set is available.  Initial evaluation of
     the 3D seismic indicates significantly improved structural and
     stratigraphic definition and additional prospectivity not evident on the 2D
     seismic.
  -- The Africa Oil – Tullow partnership has acquired over 1,100 meters of whole
     core from the discovered basin wells and an extensive program of detailed
     core analysis is ongoing that will provide results from the first quarter
     of 2015 onwards.
  -- Due to the delays in acquiring the 3D seismic survey in Blocks 10BB and 13T
     the Government of Kenya has approved a one year extension to the PSC
     exploration terms for both blocks, and as a result, the final exploration
     periods will expire in July 2017 and September 2017, respectively.
  -- The Company has informed the Ethiopian Government and its partners that it
     intends to withdraw from the Adigala Block and Blocks 7 and 8, both in
     Ethiopia.
  -- The Company, through its 44.6% ownership in Horn Petroleum Corporation, has
     informed the Government of Puntland (Somalia) that the Company will be
     significantly reducing its presence in Bosaso, Puntland and will refrain
     from any operational activity and associated expenditures pending a
     resolution of the political situation between the Regional Government of
     Puntland and the Federal Government of Somalia regarding the legitimacy of
     oil concession contracts. Given the considerable efforts taken by the
     Company to date in Puntland (Somalia), the Company has requested a two year
     extension to the current exploration period from the Government of Puntland
     to allow time for these political challenges to be resolved.



Keith Hill, President and CEO of Africa Oil, commented, “We are very encouraged
by the excellent well results from our recent appraisal program at Ngamia and
Amosing and we have recently commenced operations that will facilitate the
initiation of EWT’s at both fields, which should further improve reservoir
definition. With the recent closing of our brokered private placement and no
debt, we are well positioned to weather the current downturn in oil prices. 
Our goal in 2015 will be to keep the project moving forward while being
financially conservative until oil prices show signs of recovery. The Company
has worked closely with its partners to focus 2015 work program and budgets on
advancing the discovered basin development by undertaking activities aimed at
increasing resource certainty and progressing development studies with the
intent of submitting a FDP around the end of 2015.  In addition, the Company
and its partner will continue to work closely with the Government of Kenya and
the Uganda Upstream partners to advance the regional oil export pipeline." 



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For the complete news release and report see attached file.


         For further information, please contact:  Sophia Shane, Corporate
Development (604) 689-7842.