September 3, 2013 (AOI – TSXV) … Africa Oil Corp. (“Africa Oil”, “AOC”, or “the Company”) is pleased to announce that an updated independent assessment of the Company’s contingent and prospective resources on its Kenyan and Ethiopian exploration properties has been completed by Gaffney, Cline & Associates (“Gaffney Cline”, or “GCA”). 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, 2013.
It should be noted that these estimates do not include the Company’s Puntland (Somalia) oil and gas interests which is available at www.sedar.com under Horn Petroleum Corporation, Africa Oil’s 45% owned subsidiary.
Given the large quantity of prospects and leads in the Company’s portfolio, the following three 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 Gaffney Cline, detailing the contingent oil resources and prospective oil and gas resources by prospect and lead with the associated geological chance of success:
| Summary of Contingent Oil Resources 1 as of July 31, 2013 | ||||
| Country | Licence | GROSS Best (2C) Estimate (MMbbl) | AOC Working Interest (%) | NET Best (2C) Estimate (MMbbl) |
| Kenya | Block 10BB | 280 | 50% | 140 |
| Block 13T | 87 | 50% | 44 | |
| Ethiopia | Block 7/8 2 | 155 | 30% | 47 |
Notes:
1. This summation of resources has been prepared for convenience by the Company and not by Gaffney Cline & Associates.
2. Gross best estimate (2C) contingent gas resources of 106 BCF (32 BCF Net) not included in table for Blocks 7/8.
| Summary of Prospective Oil Resources 1 as of July 31, 2013 | |||||
| UNRISKED | UNRISKED | RISKED 2 | |||
| Country | Licence | GROSS Best Estimate (MMbbl) | AOC Working Interest (%) | NET Best Estimate (MMbbl) | NET Best Estimate (Risked) (MMbbl) |
| Kenya | Block 9 | 1,598 | 50% | 799 | 96 |
| Block 10A | 376 | 30% | 113 | 14 | |
| Block 10BA | 9,836 | 50% | 4,918 | 374 | |
| Block 10BB | 2,364 | 50% | 1,182 | 302 | |
| Block 12A | 3,779 | 20% | 756 | 38 | |
| Block 13T | 2,174 | 50% | 1,087 | 382 | |
| Ethiopia | South Omo | 2,641 | 30% | 792 | 88 |
| Summary of Prospective Gas Resources 1 as of July 31, 2013 | |||||
| UNRISKED | UNRISKED | RISKED 2 | |||
| Country | Licence | GROSS Best Estimate (BCF) | AOC Working Interest (%) | NET Best Estimate (BCF) | NET Best Estimate (Risked) (BCF) |
| Kenya | Block 9 | 1,880 | 50% | 940 | 376 |
| Block 10A | 360 | 30% | 108 | 38 | |
Notes:
1. This summation of resources has been prepared for convenience by the Company and not by Gaffney, Cline & Associates.
2. Risked resources have been calculated and summed by the company after risking prospects and leads individually. Geological Chance of success (GCOS) varies with each prospect or lead.
Keith Hill, Africa Oil’s President and Chief Executive Officer, commented: “Gaffney Cline’s independent assessment confirms a significant increase to contingent and risked prospective resources in the Tertiary rift basins in Kenya and Ethiopia. Based on the drilling and testing program over the past year we have confirmed the South Lokichar Basin contains gross contingent resources of 368 million barrels of oil, an increase of 557%. In addition gross risked prospective resources of 1,213 million barrels of oil are estimated for the South Lokichar Basin. This level of resource exceeds the threshold for development and development studies have commenced. We continue to aggressively explore with three seismic crews active and are ramping up drilling activity with plans to have a total of six rigs (four operated by Tullow Oil) operating in the fourth quarter of 2013. We expect the next 18 months to be transformational as we drill-out the prolific South Lokichar Basin and open up a number of highly prospective basins on the Tertiary rift trend.”
Africa Oil’s holdings include working interests in operated and non-operated Production Sharing Contracts (PSC’s) in Kenya, Ethiopia and Puntland (Somalia) in East Africa. These Blocks contain relatively under explored plays in basins that have proven and productive analogs. Since the effective date (June 30, 2012) of Gaffney Cline’s previous evaluation of prospective resources, highlights of the Company’s exploration activities in Kenya and Ethiopia include:
- Drilling and testing the Twiga South-1 well in Block 13T (Kenya) resulting in an additional oil discovery and demonstrating high quality Auwerwer sands containing light waxy sweet oil.
- Production testing the Ngamia-1A discovery in Block 10BB (Kenya) which significantly increased the assessment of net oil pay encountered by the well;
- Drilling the Etuko-1 well in Block 10BB (Kenya) resulting in an additional oil discovery.
- As a result of these additional South Lokichar Basin discoveries, several prospects and leads in the Tertiary rift have been de-risked and the volume of contingent oil resources has increased;
- Drilling the Paipai-1 well in Block 10A (Kenya) demonstrating a working petroleum system in the Anza Basin;
- Drilling the Sabisa-1 well in the South Omo Block (Ethiopia) demonstrating a working petroleum system in the South Omo Basin;
- The acquisition of approximately 5,000 km of 2D seismic, increasing the number of mapped prospects and leads;
Please refer to the tables below detailing the Company’s contingent oil resources and prospective oil and gas resources by prospect and lead as provided by Gaffney Cline effective July 31 st , 2013.
Africa Oil Corp. is a Canadian oil and gas company with assets in Kenya, Ethiopia and Puntland (Somalia). 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 250,000 square kilometers. The East African Rift Basin system is one of the last of the great rift basins to be explored. New discoveries have been announced on all sides of Africa Oil's virtually unexplored land position including the Albert Graben oil discoveries in neighboring Uganda. Africa Oil’s recent Ngamia-1A, Twiga South-1 and Etuko-1 discoveries extend the Albert Graben play into Kenya where Africa Oil, along with partners Tullow and Marathon, hold a dominant acreage position. Newly acquired seismic and gravity data show robust leads and prospects throughout Africa Oil's project areas. The Company is listed on the TSX Venture Exchange and on First North at NASDAQ OMX-Stockholm under the symbol "AOI".
FORWARD-LOOKING STATEMENTS
Certain statements made and information contained herein constitutes "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 Hill”
President and CEO
For further information, please contact: Sophia Shane, Corporate Development (604) 689-7842.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
