VANCOUVER, BRITISH COLUMBIA — (Marketwired) — 09/26/13 — Africa Oil Corp. (“Africa Oil” or the “Company”) (TSX VENTURE: AOI)(OMX: AOI) is pleased to announce that the Ekales well has discovered oil in Block 13T in Kenya Petrophysical analysis of wireline logs and formation sampling indicates a potential pay zone of 60 to 100 meters which will be confirmed by flow testing. This discovery further de-risks and represents the fourth consecutive significant oil find in this basin. The well is located in Block 13T in Kenya and the Company holds a 50% working interest with operator Tullow Oil Kenya holding the remaining interest and operatorship.
The Company is also pleased to update progress on four additional exploration wells in Kenya and Ethiopia.
The Agete-1 well, also in Block 13T, was spud on September 16 and is currently drilling ahead. This prospect is 7 kilometers north of the Twiga discovery and along the basin bounding fault trend referred to as the string of pearls by the Company. It has a pre-drill prospective resource best estimate of 276 million barrels of recoverable oil with a chance of success of 54% (Gaffney, Cline & Associates July 31, 2013).
The Bahasi-1 well in the Kenya Block 9 Bahasi prospect is expected to spud in the next few days and Africa Oil will operate this well on behalf of its 50% joint venture partner Marathon Kenya Limited B.V., a wholly-owned subsidiary of Marathon Oil Corporation (NYSE: MRO), utilizing the Great Wall drilling rig #190. The prospect is a large anticlinal feature in the Lower Cretaceous Anza rift and is on trend with the Paipai discovery made early this year in Kenya Block 10A. The pre-drill prospective resource best estimate of this prospect is 320 million barrels of recoverable oil (Gaffney, Cline & Associates July 31, 2013). Under the terms of the farmout agreement, Marathon Oil will pay for drilling this well.
The Tutule-1 well was spud on September 21 in the South Omo Block in Ethiopia and will test the Tertiary rift play in a well-defined horst block feature adjacent to, and 4 kilometers east, of the recently drilled Sabisa-1 well which proved the basic elements of a hydrocarbon system including reservoir, seal and source. Partners in the South Omo block are Tullow Oil as operator (50% working interest), Africa Oil (30% working interest) and Marathon Ethiopia Limited B.V., a wholly-owned subsidiary of Marathon Oil Corporation (20% working interest).
The El Kuran well is being operated by New African Global Energy and is expected to spud in October. It is a Jurassic fractured carbonate play on a large anticlinal feature that had previously been drilled by Tenneco in the early 1970–s and had tested light oil at low rates. The primary goal of this well is to prove commercial flow rates. Based on the results of the initial well, fracture stimulation and horizontal drilling may be considered.
Two additional lightweight rigs for testing and shallow drilling operations are also being mobilized into northern Kenya and are expected to be operational in the fourth quarter of 2013 will bring the total rig count to seven in the Company–s blocks in Kenya and Ethiopia. A Full Tensor Gradiometry (“FTG”) survey is also currently underway in the Company–s wholly owned Rift Basin Area in Ethiopia and is expected to be completed in October.
Africa Oil CEO Keith Hill commented, “We are thrilled with the 100% success rate of the drilling program to date in northern Kenya and with 10 additional leads and prospects in this basin we can expect additional discoveries in the immediate future. We are equally excited about the basin opening wells being drilled in two new areas and the pace of exploration ahead with 6 active rigs operating full time. This discovery gives us further incentive to aggressively push forward plans for development studies of this world class project in conjunction with our partners and the Government of Kenya.”
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 in 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. Four new significant discoveries have been announced in the Northern Kenyan basin in which the Company holds a 50% interest along with operator Tullow Oil plc. 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 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
Africa Oil–s Certified Advisor on NASDAQ OMX First North is Pareto Ohman AB.
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.
Contacts:
Africa Oil Corp.
Sophia Shane
Corporate Development
(604) 689-7842
(604) 689-4250 (FAX)