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Africa Oil Second Quarter of 2013 Financial and Operating Results


Africa Oil Second Quarter of 2013 Financial and Operating Results

VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 08/28/13 -- Africa Oil Corp. (TSX VENTURE:AOI)(OMX:AOI) ("Africa Oil", "the Company" or "AOC") is pleased to announce its financial and operating results for the three and six months ended June 30, 2013.


 
--  On the back of the successful exploration activities in Kenya during
    2012, the Company, together with its partners, continues to ramp up its
    exploration program in Kenya and Ethiopia. Entering the year, two
    Tullow-Africa Oil joint venture rigs were operating in Kenya and one
    joint venture rig was operating in Ethiopia. A fourth Tullow-Africa Oil
    joint venture rig has been secured and is expected to commence testing
    and drilling operations in Kenya on Blocks 10BB and 13T during October
    2013. The Company, as operator, and its partner in Block 9 (Kenya) have
    secured a fifth rig, which will commence drilling operations in
    September 2013. In addition, the Company and its partners in Block 7/8
    (Ethiopia) have secured a sixth rig, which will commence drilling
    operations in September 2013. For a period, the Company will have six
    drilling rigs operating and expects to exit the year with five rigs
    operating in the region. The Company plans to have drilled ten
    exploration wells and to have tested four wells across its exploration
    blocks during 2013 
--  During the first half of the year, the Company completed a series of
    well tests at both Twiga South-1 and Ngamia-1 on Blocks 13T and 10BB in
    Kenya, respectively. These successful well tests confirmed over 5,000
    barrels of oil per day ("bopd") flow potential per well and a doubling
    of our previous estimates of net oil pay. Ekales-1, the next exploration
    well in the Basin Bounding Fault Play and on trend with Ngamia-1 and
    Twiga South-1, commenced drilling in July. Transient Pressure Analysis
    has been conducted on the Twiga South-1 and Ngamia-1 well tests. No
    pressure depletion was recorded over the duration of the tests. Flow
    periods ranged from 0.5 to 2.5 days and build up periods ranged between
    3 to 12 days. 
--  Upon completing testing operations at Ngamia-1 in Block 10BB, the
    Weatherford 804 rig mobilized to the Ekales-1 well in Block 13T. The
    Ekales prospect is located on the main basin bounding fault midway
    between the Ngamia-1 and Twiga South-1 discoveries and is targeting the
    same formations that were productive in these discoveries. The well spud
    in July and is expected to be completed around end September. 
--  In July, the Company announced a new major oil discovery at Etuko-1.
    Etuko-1 is located 14 kilometers east of Twiga South-1 in Block 10BB and
    is the first test of the Basin Flank Play in the eastern part of the
    Basin. The well encountered approximately 40 meters of net oil pay in
    the Auwerwer and Upper Lokhone targets and approximately 50 meters of
    additional potential net pay in the Lower Lokhone interval. The well
    will be tested later in the year. 
--  In July, the Company reported that the Sabisa-1 well on the South Omo
    Block in Ethiopia, the most northerly well drilled on the Tertiary rift
    trend to date, had confirmed a viable hydrocarbon system with oil and
    heavy gas shows. Based on the encouragement of the results, the decision
    was made to drill the Tultule-1 as the next well on the South Omo Block.
    This well is expected to spud around the end August. 
--  In the first quarter of 2013, the Company and its operating partners on
    Block 10A completed drilling the Paipai-1 exploration well. The Paipai-1
    well tested a large four-way closed structure with Cretaceous-age
    sandstone targets at multiple depths. Paipai-1 spudded in September 2012
    and completed drilling in the first quarter of 2013 to a total depth of
    4,255 meters. Light hydrocarbons were encountered while drilling a 55
    meter thick gross sandstone interval. Attempts to sample the reservoir
    fluid were unsuccessful and the hydrocarbons encountered while drilling
    were not recovered to surface. The Company and its partners were unable
    to test the well at the time due to the unavailability, in country, of
    testing equipment capable of handling the higher reservoir pressures
    encountered at this depth. As a result, the well has been temporarily
    suspended pending further data evaluation. 
--  The Company and its partner on Block 9 are currently planning to drill
    one exploration well in 2013. Block 9 is in the Cretaceous rift basin on
    trend with the South Sudan oil fields and the play concept was confirmed
    by the recent Paipai-1 well drilled in Block 10A. Two major prospects,
    Bahasi-1 and Sala-1, with large volume potential have been identified.
    The Company, as operator, and its partners in Block 9 have completed
    construction of the access road and well site for the Bahasi-1
    exploration well. The Greatwall GW190 rig has commenced mobilization to
    site and the well is expected to spud in September. 
--  The Company and its partners continue to focus on the El Kuran oil
    accumulation on Block 8, discovered in the early 1970's. After
    completing reservoir characterization studies, the Company focused
    efforts on testing and completion strategies for producing commercial
    quantities of oil and gas. The Company and its joint operating partners
    on Blocks 7/8 (New Age operated) are planning to drill and test the El
    Kuran-3 appraisal well. The well site has been constructed, erection of
    the rig is ongoing at site and the well is expected to spud in September
    2013. 
--  The Company continues to actively acquire, process and interpret 2D
    seismic over Blocks 10BA, 10BB, 12A, 13T and South Omo. In addition, the
    Company and its partner in Blocks 10BB and 13T will mobilize a 3D
    seismic crew to complete a 550 square kilometer 3D seismic survey over
    the Ngamia and Twiga structures later in 2013. 
--  In first quarter of 2013, the Company executed a PSC for the Rift Basin
    Area in Ethiopia. Located north of the South Omo Block, the Rift Basin
    Area covers 42,519 square kilometers. This block is on trend with highly
    prospective blocks in the Tertiary rift valley including the South Omo
    Block in Ethiopia, and Kenyan Blocks 10BA, 10BB, 13T, and 12A. The
    Company commenced acquiring a Full Tensor Gradiometry survey in May
    2013, which is approximately 70% complete, and is conducting an
    exhaustive environmental and social impact assessment over the block in
    preparation for a seismic program in 2014. 
--  Africa Oil ended the quarter in a strong financial position with cash of
    $179.5 million and working capital of $141.2 million. 

Keith Hill, President and CEO, commented, "Africa Oil is very encouraged with the results of our first three exploration wells in the Lokichar basin. Our fully funded 2013 work program is focused on drilling and testing multiple wells in the Lokichar sub-basin in Kenya in an effort to reach commercial thresholds and on drilling multiple potential basin-opening wells across its vast East African exploration acreage."


 
Second Quarter 2013 Financial and Operating Highlights                      
                                                                            
Consolidated Statement of Net Income (Loss) and Comprehensive Income (Loss) 
(Thousands of United States Dollars)                                        
----------------------------------------------------------------------------
                     Three months  Three months    Six months    Six months 
                            ended         ended         ended         ended 
                         June 30,      June 30,      June 30,      June 30, 
                             2013          2012          2013          2012 
----------------------------------------------------------------------------
                                                                            
Operating expenses                                                          
  Salaries and                                                              
   benefits          $        477  $        294  $      1,040  $        577 
  Stock-based                                                               
   compensation             7,088           587         7,785         1,217 
  Travel                      446           237           727           462 
  Office and general          257           301           460           507 
  Donation                      -             -           100             - 
  Depreciation                 12            14            25            26 
  Professional fees            91         3,152           194         3,243 
  Stock exchange and                                                        
   filing fees                162           147           362           274 
  Impairment of                                                             
   intangible                                                               
   exploration                                                              
   assets                       -             -             -         3,115 
----------------------------------------------------------------------------
                            8,533         4,732        10,693         9,421 
Finance income               (464)       (9,980)       (3,563)       (1,371)
Finance expense             1,354           132         2,405        13,904 
----------------------------------------------------------------------------
                                                                            
Net income (loss)                                                           
 and comprehensive                                                          
 income (loss)             (9,423)        5,116        (9,535)      (21,954)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Net income (loss)                                                           
 and comprehensive                                                          
 income (loss)                                                              
 attributable to                                                            
 non-controlling                                                            
 interest                    (160)        6,084         1,602        (7,344)
Net loss and                                                                
 comprehensive loss                                                         
 attributable to                                                            
 common shareholders       (9,263)         (968)      (11,137)      (14,610)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Net loss                                                                    
 attributable to                                                            
 common shareholders                                                        
 per share                                                                  
  Basic              $      (0.04) $      (0.00) $      (0.04) $      (0.07)
  Diluted            $      (0.04) $      (0.00) $      (0.04) $      (0.07)
----------------------------------------------------------------------------
                                                                            
Weighted average                                                            
 number of shares                                                           
 outstanding for the                                                        
 purpose of                                                                 
 calculating                                                                
 earnings per share                                                         
  Basic               252,735,463   218,664,492   252,452,274   215,859,707 
  Diluted             252,735,463   225,318,773   252,452,274   215,859,707 
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Operating expenses increased $3.8 million for the three months ended June 30, 2013 compared to the prior year due mainly to an increase of $6.5 million in stock-based compensation relating to the 5,673,500 options granted in the current period. The increase was offset partially by a decrease of $3.1 million in professional fees due to finder fees paid in shares during the second quarter of 2012. The remaining $0.4 million increase can be attributed to increased salary and travel related costs associated with increased headcount and operational activity.

Operating expenses increased $1.2 million for the six months ended June 30, 2013 compared to the prior year due mainly to an increase of $6.6 million in stock-based compensation relating to the 5,673,500 options granted in the current period. The increase was offset by a decrease of $3.2 million in professional fees due to finder fees paid in shares and $3.1 million in impairment of intangible exploration assets relating to the abandonment of Blocks 7 and 11 in Mali during the prior period. The remaining $0.8 million increase can be attributed to increased salary and travel related costs associated with increased headcount and operational activity.

Financial income and expense is made up of the following items:


 
----------------------------------------------------------------------------
                     Three months  Three months    Six months    Six months 
                            ended         ended         ended         ended 
                         June 30,      June 30,      June 30,      June 30, 
                             2013          2012          2013          2012 
----------------------------------------------------------------------------
                                                                            
Loss on marketable                                                          
 securities                     -             -             -          (124)
Fair value                                                                  
 adjustment -                                                               
 warrants                     155         9,906         2,882       (13,763)
Interest and other                                                          
 income                       309            74           681           236 
Bank char
ges                   (5)           (9)          (13)          (17)
Foreign exchange                                                            
 gain (loss)               (1,349)         (123)       (2,392)        1,135 
----------------------------------------------------------------------------
                                                                            
Finance income                464         9,980         3,563         1,371 
Finance expense            (1,354)         (132)       (2,405)      (13,904)
----------------------------------------------------------------------------
----------------------------------------------------------------------------

The loss on revaluation of marketable securities is the result of a decrease in the value of 10 million shares held in Encanto Potash Corp which were acquired as part of the acquisition of Lion. These shares were sold during the first quarter of 2012.

At June 30, 2013, nil warrants were outstanding in AOC and 53.4 million warrants were outstanding in Horn. AOC holds 13.3 million of the warrants outstanding in Horn. The Company recorded a $0.2 million gain on the revaluation of warrants for the three months ended June 30, 2013 and a $2.9 million gain for the six months ended June 30, 2013, due to a reduction in the volatility of the shares of Horn combined with a reduction in the remaining life of the warrants. The Company will incur fair market value adjustments on the Horn warrants until they are exercised or they expire (43,868,527 expire September 20, 2013, 9,375,000 expire June 8, 2014, 156,248 expire June 11, 2014, and 15,000 expire June 18, 2014).

Interest income increased in the first six months of 2013 due to a significant increase in cash late in the fourth quarter of 2012 as a result of cash received from the non-brokered private placement in December of 2012.

The foreign exchange gains and losses are the direct result of changes in the value of the Canadian dollar in comparison to the US dollar. The Company's cash holdings are primarily in US and Canadian currency.


 
Consolidated Balance Sheets                                                 
(Thousands United States Dollars)                                           
                                                                            
----------------------------------------------------------------------------
                                                      June 30, December 31, 
                                                          2013         2012 
----------------------------------------------------------------------------
                                                                            
ASSETS                                                                      
Current assets                                                              
  Cash and cash equivalents                        $   179,487  $   272,175 
  Accounts receivable                                    1,953        2,848 
  Prepaid expenses                                       1,171        1,124 
----------------------------------------------------------------------------
                                                       182,611      276,147 
Long-term assets                                                            
  Restricted cash                                        1,625        1,119 
  Property and equipment                                    98           82 
  Intangible exploration assets                        376,679      282,109 
----------------------------------------------------------------------------
                                                       378,402      283,310 
                                                                            
Total assets                                       $   561,013  $   559,457 
----------------------------------------------------------------------------
                                                                            
LIABILITIES AND EQUITY                                                      
                                                                            
Current liabilities                                                         
  Accounts payable and accrued liabilities         $    41,371  $    36,188 
  Current portion of warrants                               10        2,288 
----------------------------------------------------------------------------
                                                        41,381       38,476 
Long-term liabilities                                                       
  Warrants                                                 224          828 
----------------------------------------------------------------------------
                                                           224          828 
                                                                            
Total liabilities                                       41,605       39,304 
----------------------------------------------------------------------------
                                                                            
Equity attributable to common shareholders                                  
  Share capital                                        560,023      558,555 
  Contributed surplus                                   19,445       12,123 
  Deficit                                             (109,213)     (98,076)
----------------------------------------------------------------------------
                                                       470,255      472,602 
  Non-controlling interest                              49,153       47,551 
----------------------------------------------------------------------------
Total equity                                           519,408      520,153 
----------------------------------------------------------------------------
  Total liabilities and equity                     $   561,013  $   559,457 
----------------------------------------------------------------------------

The increase in total assets from December 31, 2012 to June 30, 2013 is primarily attributable to intangible asset expenditures incurred during the quarter in Kenya, Ethiopia and Puntland (Somalia).


 
Consolidated Statement of Cash Flows                                        
(Thousands United States Dollars)                                           
                                                                            
----------------------------------------------------------------------------
                     Three months  Three months    Six months    Six months 
                            ended         ended         ended         ended 
                         June 30,      June 30,      June 30,      June 30, 
                             2013          2012          2013          2012 
----------------------------------------------------------------------------
Cash flows provided                                   
                      
 by (used in):                                                              
Operations:                                                                 
 Net income (loss)                                                          
  and comprehensive                                                         
  income (loss) for                                                         
  the period         $     (9,423) $      5,116  $     (9,535) $    (21,954)
 Items not affecting                                                        
  cash:                                                                     
  Stock-based                                                               
   compensation             7,088           587         7,785         1,217 
  Share-based                                                               
   expense                      -         3,298             -         3,298 
  Depreciation                 12            14            25            26 
  Gain on marketable                                                        
   securities                   -             -             -          (124)
  Impairment of                                                             
   intangible                                                               
   exploration                                                              
   assets                       -             -             -         3,115 
  Fair value                                                                
   adjustment -                                                             
   warrants                  (155)       (9,906)       (2,882)       13,763 
  Unrealized foreign                                                        
   exchange loss            1,116         1,477         2,235            87 
  Changes in non-                                                           
   cash operating                                                           
   working capital            (46)         (597)         (796)         (785)
----------------------------------------------------------------------------
                           (1,408)          (11)       (3,168)       (1,357)
Investing:                                                                  
  Property and                                                              
   equipment                                                                
   expenditures               (27)            -           (41)          (64)
  Intangible                                                                
   exploration                                                              
   expenditures           (55,304)      (38,249)      (94,570)      (60,144)
  Proceeds from sale                                                        
   of marketable                                                            
   securities                   -             -             -         2,690 
  Changes in non-                                                           
   cash investing                                                           
   working capital             (7)        7,591         6,827         9,264 
----------------------------------------------------------------------------
                          (55,338)      (30,658)      (87,784)      (48,254)
Financing:                                                                  
  Common shares                                                             
   issued                   1,005        13,431         1,005        24,233 
  Deposit of cash                                                           
   for bank                                                                 
   guarantee               (1,250)         (375)       (1,250)         (375)
  Release of bank                                                           
   guarantee                  450             -           744         1,275 
----------------------------------------------------------------------------
                              205        13,056           499        25,133 
 Effect of exchange                                                         
  rate changes on                                                           
  cash and cash                                                             
  equivalents                                                               
  denominated in                                                            
  foreign currency         (1,116)       (1,477)       (2,235)          (47)
----------------------------------------------------------------------------
Decrease in cash and                                                        
 cash equivalents         (57,657)      (19,090)      (92,688)      (24,525)
Cash and cash                                                               
 equivalents,                                                               
 beginning of period      237,144       104,123  $    272,175  $    109,558 
----------------------------------------------------------------------------
Cash and cash                                                               
 equivalents, end of                                                        
 period                   179,487  $     85,033  $    179,487  $     85,033 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
 Supplementary                                                              
  information:                                                              
  Interest paid               Nil           Nil           Nil           Nil 
  Income taxes paid           Nil           Nil           Nil           Nil 
----------------------------------------------------------------------------

The decrease in cash for the three and six months ended June 30, 2013 is mainly the result of intangible exploration expenditures and cash-based operating expenses.


 
Consolidated Statement of Equity                                            
(Thousands United States Dollars)                                           
                                                                            
----------------------------------------------------------------------------
                                                      June 30,     June 30, 
                                                          2013         2012 
----------------------------------------------------------------------------
                                                                            
Share capital:                                                              
 Balance, beginning of period                      $   558,555  $   306,510 
 Exercise of warrants                                        -       14,340 
 Exercise of options                                     1,468        1,271 
----------------------------------------------------------------------------
 Balance, end of period                                560,023      322,121 
----------------------------------------------------------------------------
                                                                            
Contributed surplus:                                                        
 Balance, beginning of period                      $    12,123  $     8,425 
 Exercise of Horn warrants                                   -        1,148 
 Stock based compensation                                7,785        1,217 
 Exercise of options                                      (463)        (407)
 Shares to be issued in lieu of professional fees            -        3,298 
----------------------------------------------------------------------------
 Balance, end of period                                 19,445       13,681 
----------------------------------------------------------------------------
                                                                            
Deficit:                                                                    
 Balance, beginning of period                      $   (98,076) $   (75,283)
 Net loss and comprehensive loss attributable to                            
  common shareholders                                  (11,137)     (14,610)
----------------------------------------------------------------------------
 Balance, end of period                               (109,213)     (89,893)
----------------------------------------------------------------------------
 Total equity attributable to common shareholders  $   470,255      245,909 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Non-controlling interest:                                                   
 Balance, beginning of period         
             $    47,551  $    36,296 
 Non-controlling interest on issuance of Horn                               
  shares                                                     -        8,328 
 Net income (loss) and comprehensive income (loss)                          
  attributable to non-controlling interest               1,602       (7,344)
----------------------------------------------------------------------------
 Balance, end of period                                 49,153       37,280 
----------------------------------------------------------------------------
 Total equity                                      $   519,408  $   283,189 
----------------------------------------------------------------------------
----------------------------------------------------------------------------

The Company's consolidated financial statements, notes to the financial statements, management's discussion and analysis for the three and six months ended June 30, 2013 and the 2012 Annual Information Form have been filed on SEDAR (www.sedar.com) and are available on the Company's website (www.africaoilcorp.com).

Outlook

The Company is significantly increasing the pace of exploration. For a period during the last half of the year, the Company will have six drilling rigs operating and expects to exit the year with five rigs operating.

The Ngamia-1, Twiga South-1 and Etuko-1 light oil discoveries in the Lokichar sub-basin, combined with positive results from reservoir analysis and flow rate tests at Ngamia-1 and Twiga South-1, has led to a significant increase in the pace of exploration focused on tertiary rift basins. The Company and its joint venture partners in the tertiary rift play in east Africa plan to have four rigs operating by the end of 2013. The near term focus of these rigs is to continue drilling and testing wells in the Lokichar sub-basin in Kenya with improved efficiencies in an effort to continue building its contingent resource base, and to drill potential basin-opening wells in the Turkana, Chew Bahir, and Kerio basins in the tertiary rift play within Kenya and Ethiopia. Resources discovered to date are of a scale that the Tullow-Africa Oil joint venture partnership will initiate discussions with the Government of Kenya and other relevant stakeholders to consider development options. These discussions include consideration of a "start-up phase" oil production system with potential to deliver significant production rates with oil export via road or rail in advance of a full-scale pipeline development. The Company and its partners will continue to acquire seismic data throughout the tertiary rift in Kenya and Ethiopia in an effort to add to its existing portfolio of drill-ready prospects.

The Company and its operating partner in Block 9 in Kenya are currently mobilizing Greatwall GW190 rig to drill the Bahasi-1 exploratory well. This well which is planned to spud in September will be drilled on a large anticlinal structure targeting tertiary and cretaceous sandstones where six billion barrels of oil was discovered along trend in Sudan in a similar geologic setting. A follow-up well is also being considered in early 2014 in Block 9. The Company and its operating partners in Blocks 7/8 in Ethiopia are currently mobilizing a rig to drill a well to appraise reservoir characteristics of Jurassic carbonates on the El Kuran oil accumulation. The main focus of this well which is expected to spud in September, is to establish commercial rates with acidizing, fraccing and horizontal sidetracks being considered.

Based on the encouragement provided by the Shabeel wells, the Company and its partners entered the next exploration period in both the Dharoor Valley and Nugaal Valley PSAs which carry a commitment to drill one well in each block within an additional three year term ending October 2015. The current operational plan is to contract a seismic crew to acquire additional data in the Dharoor Valley block and to hold discussions with the Puntland Government regarding drill ready prospects in the Nugaal Valley block. The focus of the Dharoor Valley block seismic program will be to delineate new structural prospects for the upcoming drilling campaign. Horn has been in discussion with potential joint venture partners and is reviewing new venture opportunities in the region.

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 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 Pareto Provider Ohman (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

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