Africa Oil Corp.
Börsmeddelande

AFRICA OIL ANNOUNCES SIGNIFICANT INCREASE IN RESOURCE ESTIMATES OF KENYA OIL
FIELDS AND CONFERENCE CALL

September 16, 2014 (AOI-TSX, AOI-NASDAQ OMX Stockholm) … Africa Oil Corp.
(“Africa Oil”, “AOC” or the “Company”) is pleased to announce that an
independent assessment of the Company’s Contingent Resources in the South
Lokichar Basin located in Blocks 10BB and 13T in Kenya has been completed by
Gaffney, Cline & Associates (“Gaffney Cline” or “GCA”). 

Total 2C gross contingent resources increased 67% to 616 million barrels of oil
and total 3C gross contingent resources increased 52% to 1.29 billion barrels
of oil in the oil fields discovered to date in the South Lokichar basin. The
Prospective Resource estimates outside of the field areas in the South Lokichar
Basin have not been updated and it is planned to do a comprehensive update of
all resources on all properties at year end. 

Given the number of discoveries in the South Lokichar Basin, the following two
tables have been prepared for the convenience of readers by Africa Oil. 
Readers should refer to the tables attached to this News Release, which have
been prepared by GCA, detailing the low (1C), best (2C) and high (3C)
Contingent Resources estimates in greater detail. 



Summary of South Lokichar Basin 2C Oil Contingent Resources as of July 31, 2014
--------------------------------------------------------------------------------
Field                    GROSS 2C              AOC Working           NET 2C    
                         Estimate                Interest          Estimate    
                   Millions of barrels             (%)               (mmbo)    
                         (“mmbo”)                                              
-------------------------------------------------------------------------------
Ngamia                     340                     50%                170      
-------------------------------------------------------------------------------
Ekales                      20                     50%                 10      
-------------------------------------------------------------------------------
Twiga                       62                     50%                 31      
-------------------------------------------------------------------------------
Agete                       57                     50%                 28      
-------------------------------------------------------------------------------
Etuko                       16                     50%                 8       
-------------------------------------------------------------------------------
Amosing                    118                     50%                 59      
-------------------------------------------------------------------------------
Ewoi                         3                     50%                 2       
-------------------------------------------------------------------------------
TOTAL                      616                     50%                308      
-------------------------------------------------------------------------------

Notes:

  1. “Gross Contingent Resources” are 100% of the volumes estimated to be
     recoverable from the field in the event that it is developed.
  2. Net Contingent Resources in this table are AOC’s Working Interest fraction
     of the Gross Field Contingent Resources; they do not represent AOC’s actual
     Net Entitlement under the terms of the PSC that governs the asset, which
     would be lower.
  3. The volumes reported here are “unrisked” in the sense that no adjustment
     has been made for the risk that the field may not be developed in the form
     envisaged or may not be developed at all (i.e. no “Chance of Development”
     factor has been applied).



Summary of South Lokichar Basin 3C Oil Contingent Resources as of July 31, 2014
--------------------------------------------------------------------------------
Field                   GROSS 3C            AOC Working            NET 3C      
                        Estimate              Interest             Estimate    
                         (mmbo)                 (%)                (mmbo)      
-------------------------------------------------------------------------------
Ngamia                    660                   50%                  330       
-------------------------------------------------------------------------------
Ekales                     44                   50%                  22        
-------------------------------------------------------------------------------
Twiga                     142                   50%                  71        
-------------------------------------------------------------------------------
Agete                     163                   50%                  81        
-------------------------------------------------------------------------------
Etuko                      42                   50%                  21        
-------------------------------------------------------------------------------
Amosing                   231                   50%                  115       
-------------------------------------------------------------------------------
Ewoi                        9                   50%                   5        
-------------------------------------------------------------------------------
TOTAL                     1291                  50%                  645       
-------------------------------------------------------------------------------

Notes:

  1. Gross Contingent Resources are 100% of the volumes estimated to be
     recoverable from the field in the event that it is developed.
  2. Net Contingent Resources in this table are AOC’s Working Interest fraction
     of the Gross Field Contingent Resources; they do not represent AOC’s actual
     Net Entitlement under the terms of the PSC that governs the asset, which
     would be lower.
  3. The volumes reported here are “unrisked” in the sense that no adjustment
     has been made for the risk that the field may not be developed in the form
     envisaged or may not be developed at all (i.e. no “Chance of Development”
     factor has been applied).



The independent assessment was carried out in accordance with the standards
established by the Canadian Securities Administrators in National Instrument
51-101 Standards of Disclosure for Oil and Gas Activities.  The effective date
of the report is July 31, 2014. 

In addition, the Company is pleased to announce that two key exploration wells
have commenced drilling, the Kodos-1 well which is a basin opening well in the
Central Kerio Basin and the Ekosowan-1 well, which is a large prospect on the
“string of pearls” trend on the western basin bounding fault in the South
Lokichar Basin directly south of the Amosing and Ngamia significant
discoveries. These wells are expected to be completed by year end. 

Keith Hill, Africa Oil’s President and Chief Executive Officer, commented:
“Gaffney Cline’s independent assessment confirms a significant increase in
Contingent Resources for the South Lokichar Basin in Northern Kenya. Based on
the drilling and testing program over the past year our best estimate is now
that the Company’s discoveries in the South Lokichar Basin contain gross
Contingent Resources of 616 million barrels of oil (2C estimate), an increase
of 67% on previous estimates, and may contain as much as 1291 million barrels
of gross oil Contingent Resources (3C estimate), an increase of 52%.  This
level of resources exceeds the threshold for development and we are targeting
development sanction at the end of 2015/early 2016.  We continue to
aggressively explore and appraise the basin with three rigs operating and are
currently acquiring a large 3D seismic survey in the west and north of the
basin.  The key factors to address to increase these resources over the next
year will be related to recovery factors and reservoir connectivity and the
early appraisal results at Ngamia and Amosing provide encouragement on the
lateral continuity of the Auwerwer sands.  The upcoming extended well tests at
Ngamia and Amosing and the ongoing appraisal and core analysis programs will
provide additional data to support this understanding.  We also have an
exciting exploration portfolio on trend with the South Lokichar Basin and will
have drilled six new basins by the end of 2015.  We are confident that our
early successes will be repeated in at least one additional new basin.” 

Africa Oil’s holdings in the South Lokichar Basin comprise non-operated 50%
working interests in Blocks 10BB and 13T in Kenya.  The South Lokichar Basin
contains eight hydrocarbon discoveries in various stages of appraisal and
numerous prospects and leads, that have proven and productive analogs.  Since
the effective date (July 31, 2013) of Gaffney Cline’s previous evaluation of
the contingent and prospective resources for the South Lokichar Basin,
highlights of the Company’s exploration and appraisal activities for this basin
include: 

  -- Drilling and production testing the Ekales-1 well in Block 13T resulting in
     an additional oil discovery and demonstrating high quality Auwerwer sands
     containing light waxy sweet crude.

  -- Drilling the Agete-1 and 2 wells and production testing Agete-1 in Block
     13T resulting in an additional oil discovery with high quality Auwerwer
     sands containing light waxy sweet crude.

  -- Drilling the Amosing-1, 2 and 2A wells in Block 10BB resulting in an
     additional oil discovery in high quality Auwerwer sands with further
     reservoirs developed in the Lokhone formation.  The Amosing-2 and 2A
     appraisal wells suggest reservoir and pressure continuity between the wells
     which will be determined by the upcoming extended well test.

  -- Drilling and production testing the Ewoi-1 well in Block 10BB resulting in
     an additional oil discovery in the lower quality Lokhone sandstones
     developed on the eastern flank of the basin.

  -- Production testing the Etuko-1 discovery in Block 10BB further demonstrated
     the production potential of sands within the Lokhone shale source rock. 
     Etuko-2A was drilled to test oil shows seen while drilling the Auwerwer
     reservoir at Etuko-1, the results of the well are considered inconclusive
     and analysis is underway to consider further options to evaluate this
     reservoir.

  -- Drilling the Emong-1 well in Block 13T which encountered oil and gas shows
     in poorly developed reservoirs at the Auwerwer target interval.  It is
     believed that the reservoir was poorly developed due to its proximity to
     the basin bounding fault and its location within what appears to be a local
     isolated slumped fault margin.

  -- Drilling the Ekunyuk-1 well in Block 10BB on the eastern flank play which
     encountered a small zone of non-commercial oil pay within thick good
     quality Lokhone sands. The quality of Lokhone sands indicates that there is
     further exploration potential in this area of the basin.

  -- Drilling the Twiga-2 appraisal wells in Block 13T located near the basin
     bounding fault encountered relatively thin net oil pay within an alluvial
     fan facies, with limited reservoir quality.  The Twiga-2A sidetrack was
     drilled to the northeast away from the fault and encountered similar high
     quality Auwerwer formations to the Twiga-1 discovery.  Production testing
     of Twiga-2A is ongoing.

  -- Drilling the Ngamia-2 appraisal well in Block 10BB confirmed the thickness
     and lateral extent of the Auwerwer sands and identified a new fault trap,
     north of the main Ngamia accumulation.  Drilling the Ngamia-3 appraisal
     well in Block 10BB further confirmed the thickness and lateral extent of
     the Auwerwer sands over the Ngamia structure and also extended the known
     oil column significantly downdip from the Ngamia-1A discovery well.

  -- Drilling the Etom-1 well in Block 13T resulted in an additional oil
     discovery within high quality Auwerwer sands along the western basin
     bounding fault play.  The well results were announced after the effective
     date for the Gaffney Cline resource assessment and are therefore still
     carried in prospective resources.

  -- To date ten exploration wells have been drilled in the basin resulting in
     eight oil discoveries, an 80% success rate.

  -- Acquisition of a 704 square kilometer 3D seismic survey is approximately
     90% complete over the discoveries and prospects along the western basin
     bounding fault and fast track processed results over the Ekosowan prospect
     and Amosing discovery were utilized in this updated resource assessment. 
     In addition, a further 100 kilometers of 2D seismic was acquired in the
     basin.

  -- Acquisition of 890 meters of whole core in wells at Agete, Amosing Ekales,
     Etuko, Ngamia and Twiga to aid in reservoir understanding.

  -- All production tests indicate similar quality light waxy sweet crudes.



The Company continues to aggressively explore and appraise the South Lokichar
Basin.  Two drilling rigs and a completion/test rig are currently operating in
the basin and are planned to continue through 2015.  The Ngamia-4 appraisal
well and the Ekosowan-1 exploration well are currently drilling and production
testing is ongoing at Twiga-2A. 

Commitment has been made to expand the 3D seismic survey to cover an additional
247 square kilometers over the Etom area and the full survey is expected to be
complete by around end first quarter 2015.  Consideration is also been given to
expanding the survey over the eastern flank play.  It is expected that the
results of the 3D seismic survey will lead to better subsurface understanding
and identify additional prospectivity.  Due to the delays in acquiring the 3D
seismic survey the Government has recently approved a one year extension to the
PSC exploration term for both blocks 10BB and 13T, which means the final
exploration periods will expire in July 2017 and September 2017, respectively. 

The anchor for a development of the South Lokichar Basin will be the series of
high quality Auwerwer reservoir discoveries made along the western basin
bounding fault at Amosing, Ngamia, Ekales, Twiga and Agete.  The appraisal
program is focused on increasing the subsurface certainty through multiple
appraisal wells, extended well tests at Amosing and Ngamia and special core
analysis.  The wide distribution between 1C, 2C and 3C contingent resources is
in part driven by the assumed recovery factor range for the Auwerwer reservoir
of P90 – 16%, P50 – 26% and P10 – 36% which is a function of uncertainty over
reservoir distribution and connectivity.    The ongoing appraisal program is
aimed at both narrowing uncertainty around contingent resources and confirming
the Company’s expectation of a recovery factor at the upper end of the current
range. 

The South Lokichar Basin exceeds threshold oil volumes for undertaking
development studies and development planning is being fast tracked.  It is
anticipated that a Field Development Plan will be submitted to Government in
the second half of 2015 and project sanction, including an export pipeline, is
being targeted at the end of 2015/early 2016.  This will be the catalyst for
booking reserves for the basin. 

Please refer to the tables below detailing the Company’s Contingent Resources
by discovery as provided by Gaffney Cline & Associates, effective July 31,
2014. 



Conference Call

A conference call will held to discuss the resource update on September 16,
2014 at 11:00 ET, 4:00 p.m. UK time, or 5:00 p.m. Swedish time. 

Please call in 10 minutes before the conference starts and stay on the line (an
operator will be available to assist you). 

Call-in number for the conference call (North America): +1 416-340-2216
Call-in number for the conference call (North America Toll Free): +1
866-223-7781 
Call-in number for the conference call (Europe): + 800-6578-9898

A replay of the telephone conference will be available approximately one hour
after the completion of the conference call until September 23, 2014. 

Replay number in North America: +1 905 694 9451
North America (Toll Free) is: +1 800 408 3053

The pass code for the replay is: 9087224



About Africa Oil Corp.

Africa Oil Corp. is a Canadian oil and gas company with assets in Kenya and
Ethiopia as well as Puntland (Somalia) through its 45% equity interest in Horn
Petroleum Corporation. Africa Oil's East African holdings are within a
world-class exploration play fairway with a total gross land package in this
prolific region in excess of 215,000 square kilometers. The East African Rift
Basin system is one of the last of the great rift basins to be explored. The
Company is listed on the Toronto Stock Exchange and on NASDAQ OMX-Stockholm
under the symbol "AOI". 



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. 



Cautionary Statements regarding Well Test Results

Drill stem tests are commonly based on flow periods of 1 to 5 days and build up
periods of 1 to 3 days. Pressure transient analysis has not been carried out on
all well tests and the results should therefore be considered as preliminary.
Well test results are not necessarily indicative of long-term performance or of
ultimate recovery. 



                             ON BEHALF OF THE BOARD

                                        

                                “Keith C. Hill”

                                President and CEO



--

For complete release see attached file.




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