Ngamia Well Flows at Over 3200 BOPD and Doubles Net Pay New Major Oil Discovery at Etuko and Confirmation of Oil System

Ngamia Well Flows at Over 3200 BOPD and Doubles Net Pay New Major Oil Discovery 
at Etuko and Confirmation of Oil System Extension Into
Ethiopia by Sabisa Well 
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 07/03/13 -- Africa
Oil Corp. (TSX VENTURE:AOI)(OMX:AOI)  ("Africa Oil" or the "Company")
is pleased to announce excellent results from its recent drilling
operations in Kenya and Ethiopia.  
The testing program at the Ngamia-1 oil discovery on Block 10BB in
Kenya has now been successfully completed. The cumulative flow rate
from six Drill Stem Tests ("DST's") was over 3200 barrels of oil per
day ("BOPD") constrained by completion techniques and surface
equipment. With optimized completion techniques and surface equipment
it is estimated that these combined flow rates would increase to a
rate of 5400 BOPD. Five of the DSTs were completed over the Auwerwer
sandstones to verify reservoir quality and fluid content which appear
to be of similar quality to those tested at the Twiga South-1 well in
the same basin. High quality waxy sweet crude (25-35 degrees API) was
flowed from all five zones in the Auwerwer formation with good
quality reservoir sands encountered. All zones produced dry oil with
no water produced and no pressure depletion. One DST was completed on
the Lower Lokhone with successful results as previously announced on
April 15, 2013. 
In addition to proving the good quality reservoir, as a result of
testing several previously indeterminate zones in the well, the joint
venture has been able to double the firm net oil pay estimate in the
Ngamia well to over 200 meters over a gross oil column of over 1,100
meters and has increased the net pay at Twiga to over 75 meters. The
Operator, Tullow Oil, has reported that they believe the Ngamia and
Twiga fields contain over 250 million barrels of recoverable oil.
Appraisal work, including the acquisition of 3D seismic and the
drilling of appraisal wells on both discoveries, will be undertaken
over the next year to confirm these estimates. A mid-year revision to
the Company's third party resource report is ongoing and is expected
to be issued in the third quarter and will take into account these
improved reservoir thickness and quality parameters. 
The Weatherford 804 rig used to test this well is currently
mobilized 13 kilometers north to the Ekales location, a prospect
similar to and located between the Twiga and Ngamia discoveries,
which is expected to spud in late July. 
The Company is also pleased to announce that oil has been discovered
in the Etuko prospect in the Lokichar Basin in Block 10BB in Kenya.
This well was located on a tilted fault block target on the Basin
Flank Play on eastern side of the basin. Based on logs and oil
recovered by MDT sampling, net pay of 40 meters has been confirmed in
the Auwerwer and Upper Lokhone targets which demonstrate good
reservoir properties and oil quality. Within the Upper Lokhone
sequence the well encountered a thick section of lacustrine source
rocks with interbedded oil-bearing sandstones. The well is currently
drilling in the Lower Lokhone sands and results from this lower
section are expected by the end of July. 
The Company is also pleased to announce that the Sabisa-1 well, the
most northerly well drilled in the trend to date, has confirmed a
viable hydrocarbon system in this region. The well was drilled on the
South Omo Block in Ethiopia in the northern portion of the Turkana
Basin, over 300 kilometers north of the Ngamia and Twiga discoveries,
to a total depth of 2082 meters. The well encountered reservoir
quality sands, oil shows and heavy gas shows indicating an oil prone
source rock and a thick shale section which should provide a good
seals for the numerous fault bounded traps identified in the basin.
Only the lowermost sands appear to be in trapping configuration at
Sabisa. Based on the encouragement of the results of this well
however, the decision has been made to drill the nearby Tultule
prospect which appears to be a horst-block structure 4 kilometers to
the east. The OGEC 75 rig move has been initiated and a late third
quarter spud is expected. Numerous additional follow-up prospects
have been mapped in this part of the South Omo Block and in the
adjacent Chew Bahir Basin. 
Preparations continue for drilling in both the Kenya Block 9 Bahasi
prospect and the Ethiopia Ogaden Basin Block 8 El Kuran prospect.
Africa Oil will operate the Bahasi well on behalf of its 50% joint
venture partner Marathon Oil and will utilize 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 El Kuran well is being
operated by New African Global Energy and is expected to spud in
July. 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. An additional lightweight rig for testing and drilling
operations is also being mobilized into the Lokichar Basin in Kenya
which will bring the total rig count to six 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 August. 
Africa Oil CEO Keith Hill commented, "We are very pleased with the
results of the Ngamia-1 testing program which has confirmed the
productivity of both the Lower Lokhone reservoir and the high quality
Auwerwer reservoir and significantly increased the net pay in the
well. Ngamia is a world-class oil discovery and these results move us
towards achieving the threshold for a commercial development in the
Lokichar basin. This encouragement has caused us to set in motion
appraisal of the Ngamia-Twiga trend and to assemble a technical team
to commence early development planning both for a large scale
pipeline development and an early development scheme. The Etuko
discovery also opens up a new fairway on the eastern flank play in
Lokichar where a number of other large scale prospects have been
identified. The Sabisa results are also highly encouraging as all the
major components for oil accumulation appear to have been proven in
one of our largest and most prospective frontier basins in the
portfolio. The second half of 2013 promises to be an exciting and
transformational period in the growth history of the Company." 
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. Two new
significant discoveries have been announced in the Lokichar 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 app
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. 
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.
Africa Oil Corp.
Sophia Shane
Corporate Development
(604) 689-7842
(604) 689-4250 (FAX)
Press spacebar to pause and continue. Press esc to stop.