Africa Oil Completes Kenyan Farmout With Marathon Oil

Africa Oil Completes Kenyan Farmout With Marathon Oil 
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 10/22/12 -- Africa Oil
Corp. ("Africa Oil" or the "Company") (TSX VENTURE:AOI) (OMX:AOI) is
pleased to announce that it has completed the Kenyan portion of the
previously announced (July 23, 2012) farmout agreement with Marathon
Oil Corporation ("Marathon Oil") whereby Marathon Oil acquired an
interest in two of Africa Oil's Kenyan exploration blocks. 
Under the terms of the farmout agreement, Marathon Oil acquired a 50%
interest in Block 9 and a 15% interest in Block 12A, both in Kenya.
Africa Oil will maintain operatorship in Block 9, but Marathon Oil
has the right to assume operatorship if a commercial discovery is
made. The resulting interest in the Kenyan exploration blocks are as
follows: 


 
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Block 9 (Kenya)      Africa Oil 50% Marathon Oil 50%                        
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Block 12A (Kenya)    Africa Oil 20% Marathon Oil 15%   Tullow 65% (Operator)
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Net Working Interests are subject to back in rights or carried
working interests, if any, of the respective governments or national
oil companies of the host governments. 
In consideration for the assignment of these interests, Marathon Oil
paid Africa Oil an entry payment of US$32 million which includes
reimbursement for prior expenditures, and has agreed to fund Africa
Oil's working interest share of future joint venture expenditures on
these blocks to a maximum of US$25 million, anticipated to be spent
over the next three years.  
Keith Hill, Africa Oil's President and CEO, stated, "We are very
pleased to welcome Marathon Oil as a partner with their stature and
long history of success in the oil and gas business. We look forward
to working together to expand on the success we have had in our East
Africa exploration program to date. The consideration to be received
from Marathon Oil will allow us to both accelerate the exploration in
the blocks that Marathon Oil is farming into as well as provide
additional funding to the Company for the accelerated exploration
program on the Tertiary rift trend being executed in partnership with
Tullow Oil. East Africa is rapidly becoming the most prospective oil
and gas province in the world and the large, strategic land portfolio
we hold ensures we will be at the center of industry activity." 
Africa Oil Corp. is a Canadian oil and gas company with assets in
Kenya, Ethiopia and Mali 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
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
neighboring Uganda. Africa Oil's recent Ngamia-1 discovery extends
the Albert Graben play into Kenya where Africa Oil along with partner
Tullow holds 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 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
 
 
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