Africa Oil Operations Update

Africa Oil Operations Update 
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 08/03/11 -- Africa Oil
Corp. ("Africa Oil" or "the Company") (TSX VENTURE:AOI)(OMX:AOI) is
pleased to provide an update on the Company's ongoing exploration
activities. The Company has launched a major exploration initiative
throughout its East Africa portfolio which includes at least 10
seismic acquisition programs (totaling over 7,000 kilometres), 6 full
tensor gravity surveys, extensive environmental studies, acquisition
of high resolution gravity and magnetic data as well as geochemical
surveys. Over the next 18 months, a minimum of 7 to 10 wells are
planned to test the numerous prospects identified throughout the
blocks. 
Kenya 
The Company and Tullow Oil plc. ("Tullow"), its operating partner in
each of the Kenyan Blocks other than Block 9, have completed the work
and/or are proposing the work programs, described below. 
Block 10BB 
The Company and Tullow have integrated and interpreted all newly
acquired (610 km) and vintage 2D seismic data. A number of prospects
have been identified and are being high graded for the planned drill
program. The Ngamia (Camel) prospect (previously named Fise-1) has
been selected by the joint venture for the initial well in Block
10BB. The prospect will test the oil potential in Miocene age
sandstones within a three way dip closure against the West Lokichar
rift fault. Ngamia is directly analogous to successful oil
accumulations drilled by Tullow and partners early in the exploration
efforts in the Lake Albert graben of Uganda. The contract for the
drilling rig has been awarded to Weatherford International and the
rig is planned to be mobilized in August to Kenya. Additional
preparations for drilling, including purchase of materials, execution
of drilling related contracts, civil works, and environmental permits
are either completed or underway. Spudding of the Ngamia well is
slated for the fourth quarter of 2011. In addition to drilling
operations, the Company and its partner are currently acquiring a
full tensor gravity survey (FTG) to further define prospective areas
of the block that lack 2D seismic data. The survey should be
completed in the fourth quarter of 2011. 
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Block 10BA 
The Company and Tullow have initiated a FTG survey over most of Block
10BA, covering all of Lake Turkana and most of the adjacent onshore
areas. Two FTG contractors are working simultaneously to expedite the
survey, which is expected to be completed during the fourth quarter
of 2011. A seismic acquisition contract has been awarded to the
Bureau of Geophysical Prospecting ("BGP") for 1350 km of 2D data to
be acquired in both the offshore lake environment and nearshore
transitional areas adjacent to Lake Turkana. The offshore data will
be acquired using state of the art Ocean Bottom Cable ("OBC"),
whereby the recording receivers will be positioned on the bottom of
the lakebed. Pre-seismic environmental studies are underway and
permits are expected to be in hand by early August 2011 enabling
initiation of the seismic survey in the fourth quarter of 2011. 
Block 10A 
The Company and Tullow have integrated and interpreted all newly
acquired (750 km) and vintage 2D seismic data. A number of prospects
have been identified and are being high graded for selection of the
first drilling location. Preparations for drilling, including
purchase of materials, execution of drilling related contracts, civil
works, and environmental permits are either completed or underway.
The Block 10A well is expected to spud in early 2012 using the same
Weatherford rig as will be used in Block 10BB. In addition to the
drilling operations, a small swath of full tensor gravity (FTG) is
being acquired to test the applicability of the FTG technology in
Block 10A. The swath survey should be completed in the third quarter
of 2011. 
Block 13T 
The Company and Tullow have awarded contracts for both a FTG survey
and seismic acquisition. The FTG survey is underway and is
anticipated to be completed by the third quarter of 2011. The
recording of at least 562 km of 2D seismic data by BGP is planned to
commence in the fourth quarter of 2011. Environmental impact studies
and government permitting will precede the seismic survey.
Interpretation of reprocessed vintage seismic data has revealed a
string of interesting structures on trend with the Ngamia feature of
Block 10BB. The seismic program will focus on further delineation of
these leads to mature them to drillable prospect status. 
Block 12A 
The Company and Tullow have awarded contracts for both an FTG survey
and seismic acquisition. The FTG survey is underway and is expected
to be completed during the third quarter of 2011. The recording of at
least 520 km of 2D seismic data by BGP is planned to commence in
January 2012. Environmental impact studies and Government permitting
will precede the seismic survey. 
Block 9 
The Company holds 100% interest in Block 9 and current operations
include the acquisition of 750 km of 2D seismic data. The survey is
95% complete and is expected to conclude in mid-August of 2011. The
survey has been focused on delineating a drillable prospect in the
oil-prone Kaisut sub-basin in the northwestern portion of the block.
Newly acquired data is of excellent quality and a number of
interesting leads have been identified. One exploration well is
expected to be drilled during 2012. Additionally, the Company has
completed a study associated with potential commercialization of gas
resources in the 2010 Bogal discovery prior to a potential 2012 Bogal
re-entry, and testing program. The Company plans to pursue a partner
on Block 9 that brings gas development and marketing experience to
the joint venture. 
Ethiopia 
South Omo Block 
The Company and its operating partner on the Block, Tullow, have
recently completed a FTG survey across most of the southern portion
of the South Omo Block. The results of the survey are encouraging and
will be used to lay out the upcoming 2D seismic survey. A contract
with BGP for the acquisition of at least 1000 km of 2D seismic data
has been executed and base camp construction began in July 2011. The
seismic recording is estimated to commence during the third quarter
of 2011. Environmental impact studies and government permitting will
precede the seismic survey. 
Ogaden Blocks 7/8 
The Company and its partners have integrated and interpreted all
newly acquired (430 km) and vintage 2D seismic data over the two
blocks. The joint venture is currently focused on developing a better
understanding of the large El Kuran oil and gas accumulation in Block
8, discovered in the early 1970's. The Company has completed a
reservoir characterization study over the El Kuran structure. A
revised analysis of the well data has confirmed the presence of light
oil in the Jurassic limestones. The Company is currently analyzing
how best to re-drill and test El Kuran in hopes of proving up
movable, commercial quantities of oil. Preparations for drilling,
including purchase of materials, execution of drilling related
contracts, civil works, and environmental permits have commenced.
Spud of the El Kuran well is anticipated in the first half of 2012. 
Ogaden Blocks 2/6 
Ogaden Blocks 2/6 have been relinquished and Ministerial approval to
waive remaining commitments is expected shortly. 
Adigala Block 
The Company and its partner have completed the first exploration
period of three years and have exceeded the con
tractual work
obligations. Negotiations with the Ministry of Mines to enter the
second period of exploration for the Adigala Block are ongoing. The
Company and its partner are proposing additional geologic and
geophysical studies to better understand the subsurface configuration
of the block. In addition, the partnership is contemplating drilling
a stratigraphic test well if a suitable light rig can be secured at
reasonable costs. 
Rift Valley Joint Study Block 
The Company completed the acquisition of high resolution gravity and
magnetic data over the Rift Valley Block in April 2011. Final
processing and interpretation is anticipated to be completed during
the third quarter of 2011. The gravity and magnetic interpretation
will enable the Company to decide whether to commit to a further work
program under a formal production sharing agreement. The block is on
trend with highly prospective blocks in the Tertiary rift valley such
as Ethiopian South Omo block, and Kenyan blocks 10BA, 10BB, 13T, and
12A. Additionally, the Company mobilized geochemical specialists to
collect fluid samples (potential oil seeps) from the surface and/or
margins of the major rift lakes Abaya and Chamo, within the southern
portion of the block. A total of 17 samples were collected of which 3
revealed hydrocarbon signatures. 
Puntland-Somalia 
Dharoor and Nugaal Valley Blocks 
The Company and Denovo Capital Corp. ("Denovo") have entered into a
letter of intent dated May 11, 2011 for the creation of a new
Puntland focused oil exploration company to be named Horn Petroleum
Corp. ("Horn Petroleum"). Horn Petroleum will be created as a result
of the sale, to Denovo, of the subsidiaries of the Company that hold
its oil and gas properties in Puntland Somalia. Certain management
and technical services are expected to be provided to Horn Petroleum
by the Company under a service contract. 
On August 2, 2011 Horn Petroleum completed a $40.98 million private
placement financing, with assistance from Africa Oil. These proceeds
will be used to fund Horn Petroleum's share of costs associated with
the drilling of two exploratory wells in the Dharoor Valley Block.
Africa Oil subscribed for $10 million of the private placement and
will have an approximately 50% interest in Horn Petroleum when the
transaction completes. Completion of the acquisition of Africa Oil's
interest in Puntland, Somalia by Horn Petroleum remains subject to,
amongst other things, TSX Venture Exchange approval. 
The Company is currently in final preparations to commence the two
well drilling campaign in the Dharoor Valley Block, with the first
well planned to spud in the fourth quarter of 2011. Drilling
locations have been selected over two robust prospects targeting
gross best estimated prospective resources of over 300 million
barrels each based on internal estimates. Contracts for a drilling
rig and third party services are in advanced stages of negotiations
with contract execution scheduled for early August. 
The Puntland Government and Dharoor Valley communities are fully
supportive of the drilling project and have ensured they will do all
to allow the project to move forward safely and expeditiously.
Specific milestone target dates have been adjusted by the Puntland
Government allowing the Company and partners to move the drilling
start-up to the fourth quarter of 2011. In addition, partial
relinquishments in both the Dharoor Valley and Nugaal Valley
agreements have been finalized and approved. The Puntland Government
has also given its approval for the formation of Horn Petroleum and
the impending transaction with the Company. 
Mali 
Blocks 7 and 11 
The Company and its partner, Heritage Oil and Gas Ltd. ("Heritage")
have recently completed the acquisition of 848 km of 2D seismic in
Block 11 and 243 km in Block 7. Both blocks are located in the Gao
Graben which is thought to be analogous to other Cretaceous age, oil
productive, central African rift basins. The Company's share of costs
for initial seismic and the drilling of the first exploratory well
are fully carried by its single partner, Heritage. 
Keith Hill, President and CEO, commented, "We are moving into a very
exciting period for Africa Oil which is expected to include the
drilling of 7 to 10 exploration wells in the next 18 months that will
test all the major petroleum systems in our extensive portfolio.
Additional exploration activities will continue into the third
quarter with FTG, 2D seismic and drilling preparations on multiple
blocks to further delineate propsects. The Company remains well
financed with reputable joint venture partners." 
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 in within a world-class exploration play fairway with a
total gross land package in this prolific region in excess of 300,000
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 major Albert Graben oil discovery in
neighbouring Uganda. Similar to the Albert Graben play model, Africa
Oil's concessions have older wells, a legacy database, and host
numerous oil seeps indicating a proven petroleum system. Good quality
existing seismic 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 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 First North is E. Ohman J:or
Fondkommission 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)
africaoilcorp@namdo.com
www.africaoilcorp.com