Africa Oil Confirms Lower Lokhone Oil Discovery in Ngamia-1 Well and Provides
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 04/15/13 -- Africa
Oil Corp. (TSX VENTURE:AOI)(NASDAQ OMX:AOI) ("Africa Oil" or the
"Company") is pleased to provide the following operational update on
its projects in East Africa.
The first of six drill stem tests at the Ngamia-1 well has been
concluded. This test was in the Lower Lokhone formation where up to
43m of potential pay had previously been identified by logging and
MDT sampling. The well flowed 281 barrels of 30 degree API oil per
day with the assistance of a Progressive Cavity Pump (PCP). The
remaining 5 tests will be conducted in the Auwerwer (formerly Upper
Lokhone) sandstones which are the highest quality reservoirs
penetrated in the Ngamia well and which produced very well in the
recent tests at the Twiga South-1 well. Results of these remaining
Ngamia tests are expected to be announced by early June. The Ngamia-1
well is located in Block 10BB in Kenya and the Company has a 50%
working interest in the block along with Tullow Oil Plc which holds
the remaining 50% interest and operatorship.
The Sabisa-1 well in the South Omo Block in Southern Ethiopia has
been drilled to a preliminary total depth of 1,810 metres.
Hydrocarbon indications in sands beneath a thick claystone top seal
have been recorded while drilling, but hole instability issues have
required the drilling of a sidetrack to comprehensively log and
sample these zones of interest. The sidetrack recently commenced and
a result is now expected in late May. The hydrocarbon indications are
highly encouraging as they provide emerging evidence for a working
petroleum system in the previously undrilled South Omo Basin. The
Company holds a 30% working interest in the block along with operator
Tullow Oil Plc (50%) and partner Marathon Oil Corporation (20%).
The mobilization of the drilling rig from Paipai to the Etuko
(previously Kamba) location in Block 10BB in Kenya continues on
schedule with a spud date expected in the first half of May.
Drilling preparations are also underway on the El Kuran prospect in
Ethiopia. Operator New Age are in the process of mobilizing a
drilling rig and related services to the location and the well is
also expected to spud in the second quarter of this year. This well
is being drilled on a large structure previously confirmed to contain
light oil in Jurassic carbonates by two boreholes drilled in the
1970's. The Company holds a 30% working interest along with New Age
(40%) and Afren Plc (30%).
The Company is in final negotiations to secure a drilling rig for its
upcoming Bahasi-1 exploration well in Block 9 in Kenya. This well
will test a large anticlinal feature in the Cretaceous rift trend
which has recently been confirmed to contain hydrocarbons at the
Paipai well in Block 10A. The well is expected to spud in the third
quarter of this year. The Company holds a 50% working interest and
operatorship along with partner Marathon Oil Corporation (50%).
Preparations are also underway to conduct a Full Tensor Gradiometry
(FTG) survey on the Company's newly awarded Rift Basin Area Block
(previously the Rift Valley Joint Study Area) in Ethiopia. The survey
is expected to commence this month and be completed by the end of the
third quarter of 2013. The Company currently holds a 100% working
interest in this block.
Africa Oil CEO Keith Hill commented, "We are pleased to be moving
forward on a number of high impact projects that will greatly affect
the value of the Company in the coming year. The confirmation of
potentially commercially viable oil in the Lower Lokhone sands in the
Ngamia well will add to the overall resource potential, but also has
positive implications for the upcoming Etuko-1 well on the eastern
flank of the Lokichar Basin. We remain convinced that we have only
just begun to unlock the potential of what may be one of the largest
new oil basins to be opened in recent times."
About Africa Oil
Africa Oil Corp. is a Canadian oil and gas company with assets in
Kenya and Ethiopia as well as Puntland (Somalia) through its
approximate 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.
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 and
Twiga South-1 discoveries extend the Albert Graben play into Kenya
where Africa Oil along with partner Tullow Oil plc 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".
ON BEHALF OF THE BOARD
Keith C. Hill, President and CEO
Africa Oil's Certified Advisor on NASDAQ OMX First North is Pareto
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.
Africa Oil Corp.
(604) 689-4250 (FAX)
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