Africa Oil Corp.
Börsmeddelande

AFRICA OIL: UPDATE ON KENYA FINANCE BILL

September 25, 2014 (AOI-TSX, AOI-NASDAQ OMX Stockholm) … Africa Oil Corp.
(“Africa Oil”, “AOC” or the “Company”) confirms that the Kenya Finance Bill
2014 has been passed by the Kenyan Parliament and assented to by President
Kenyatta. Publication of the bill is expected imminently. The majority of the
legislation included in the Bill applicable to the oil and gas industry will be
effective on January 1, 2015. The Bill covers a wide range of issues important
for the economic development of Kenya. In terms of its impact upon the oil and
gas sector the picture is mixed. 

On a positive note the legislation abolishes the previous withholding tax
regime and allows 'Farm Out' transactions to be completed in a tax effective
manner. Such transactions are heavily relied upon by the oil and gas industry
in order to attract companies with the appropriate technical and financial
capabilities to projects over the course of their life cycle, thereby
mitigating technical and financial risk. Africa Oil has completed numerous
farmout transactions to date and will continue to consider farm outs as we
continue our extensive exploration and appraisal program in East Africa. 

The Finance Bill 2014 has also reintroduced a 'Capital Gains Tax' for the first
time since 1985 when such taxation was suspended. While the rate of capital
gains tax has been established at 5% for most capital transactions, it appears
that the mining and oil and gas sectors will be taxed at 30% or 37.5% depending
on the company's country of residency for tax purposes. Africa Oil is working
with advisors to understand the impact of this legislation and remedies
available to the Company to minimize the potential impact of this tax policy.
In addition, the Company is reviewing its approach to structure any potential
future strategic transactions to ensure they minimize or eliminate any such
taxation. 

Africa Oil, alongside the industry representative body (the Kenyan Oil & Gas
Association - KOGA), are working closely with all levels of the Kenyan
government to discuss the potential negative impact such a tax policy will have
on the development of the still early stage oil exploration industry. This will
include potential barriers to entry for new investors, erosion of present
investor confidence and potential delays it will cause to exploration and
development activity. We will accordingly work with the Government to consider
potential legislative changes that would bring the rate of CGT to a level that
will meet both the Government's requirements to achieve revenue from such
transactions while still promoting the future development of the industry.
Africa Oil and KOGA have a good track record of constructive and productive
dialogue with the Kenyan Government on a range of legislative and regulatory
issues and we would hope to continue this in terms of the Finance Bill 2014.
The Government and its advisors have repeatedly stated that contract stability
and the sanctity of existing Production Sharing Agreements are a cornerstone of
its economic policy regarding the oil sector. 



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