Africa Oil Announces Farmouts in the Rift Basin Area and Adigala Blocks in Ethiopia

Africa Oil Announces Farmouts in the Rift Basin Area and Adigala Blocks in 
Ethiopia 
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 03/04/14 --   Africa
Oil Corp. (TSX VENTURE: AOI)(OMX: AOI) ("Africa Oil" or the
"Company") is pleased to announce that it has received Ethiopian
government approval in respect of two farmout agreements: 


 
 
1.  Marathon Oil Corporation (NYSE: MRO) ("Marathon Oil"), through its
    wholly-owned subsidiary Marathon Ethiopia Limited B.V., will acquire a
    50% interest in the Rift Basin Area; 
2.  New Age Ethiopia Limited ("New Age") will acquire a 40% interest in the
    Adigala Block.

Under the terms of the Marathon Oil farmout agreement, Marathon Oil
will acquire a 50% interest in the Rift Basin Area in Ethiopia.
Africa Oil will maintain operatorship of the block, but Marathon Oil
has the right to assume operatorship if a commercial discovery is
made. In consideration for the assignment of this interest, Marathon
Oil will pay Africa Oil an entry payment of $3 million in respect of
past costs, and has agreed to fund $15 million of Africa Oil's
working interest share of joint venture expenditures in the Rift
Basin Area. Africa Oil and Marathon Oil are pleased to complete the
final tranche of the farmout transaction originally announced in July
2012 (press release dated July 23, 2012). Completion of this
transaction is anticipated in March 2014. Following completion,
Africa Oil and Marathon Oil will each hold a 50% working interest in
the Rift Basin Area. 
The Rift Basin Area covers 42,519 square kilometres and is on trend
and extending to the northeast of the highly prospective blocks in
the Tertiary rift valley including the South Omo Block, and Kenyan
Blocks 10BA, 10BB, 13T, and 12A. A 1,200 kilometre 2D seismic survey
is anticipated to be acquired during the second half of 2014. 
Under the terms of the New Age farmout agreement, New Age will
acquire an additional 40% working interest in the Adigala Block, in
Ethiopia. Following completion, Africa Oil's interest will be reduced
to 10%. In consideration of the assignment New Age will carry Africa
Oil's working interest share of a planned 1,000 kilometre 2D seismic
work program in the Adigala Block. Completion of this transaction is
anticipated in March 2014. 
Keith Hill, Africa Oil's President and CEO, stated, "We are very
pleased to receive government approval to complete these farmout
transactions as we continue to actively manage our highly prospective
East African acreage portfolio. We look forward to continuing to work
with Marathon Oil as a partner given their stature and long history
of success in the oil and gas business. We have a very exciting
exploration and appraisal program set out for 2014 which will see us
complete over 20 wells. Currently we have seven rigs running and
after releasing one in mid-year will have at least six rigs running
full time through the remainder of the year. Our program has three
objectives, to appraise the existing key discoveries, to drill out
the remaining prospects in the South Lokichar basin and to open at
least one of the four new basins being tested along trend.
Additionally, we are pushing hard to move the development studies
along with the aim of sanctioning a pipeline development for the
South Lokichar basin by the end of 2015 or early 2016. This fully
funded program should continue to deliver high potential upside value
for shareholders through this year and beyond." 
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 45%
equity interest in Horn Petroleum Corporation. Africa Oil's East
African holdings are within a world-class exploration play fairway
with a total gross land package in this prolific region in excess of
230,000 square kilometers. The East African Rift Basin system is one
of the last of the great rift basins to be explored. Seven new
significant discoveries have been announced in the Northern Kenyan
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 Stockholm is
Pareto Securities 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
 
 
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