Africa Oil Announces New Gas Discovery at Sala Prospect in Block 9 in Kenya

Africa Oil Announces New Gas Discovery at Sala Prospect in Block 9 in Kenya 
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 06/24/14 --   Africa
Oil Corp. (TSX: AOI)(OMX: AOI) ("Africa Oil" or the "Company") is
pleased to announce it has made a gas discovery in Block 9 onshore
Kenya. The Sala-1 drilled a large 80 square kilometer anticlinal
feature along the northern basin bounding fault in the Cretaceous
Anza graben and encountered several sandstone intervals which had oil
and gas shows. The well was drilled to a total depth of 3030 meters
and petrophysical analysis indicated three zones of interest over a
1000 meter gross interval which were subsequently drill stem tested.
An upper gas bearing interval tested dry gas at a maximum rate of 6
mmcf/d from a 25 meter net pay interval. The interval had net
reservoir sand of over 125 meters and encountered a gas water contact
so there is potential to drill up-dip on the structure where this
entire interval will be above the gas-water contact. A lower interval
tested at low rates of dry gas from a 50m potential net pay interval
which can also be accessed at the up-dip location. It should also be
noted that there were oil shows while drilling and small amounts of
oil were recovered during drilling and testing which indicates there
may be potential for oil down-dip on the structure. Africa Oil is the
Operator of Block 9 with a 50% working interest. Marathon Oil Kenya
Limited B.V. has the remaining 50% interest.  
An appraisal plan to follow up this discovery is currently being
evaluated by the partnership in consultation with the Kenyan
government. Plans being discussed include an up-dip location to
confirm the areal extent of the gas zones tested where the full net
sand interval can be intersected above the gas-water contact. The
partnership is also considering a down-dip appraisal location to test
an on-lapping stratigraphic wedge on the flanks of the structure
which is of the same age as the zones in the nearby Ndovu-1 well
which had oil and gas shows.  
In addition, the Company is considering drilling an appraisal well on
the crest of the large Bogal structure to confirm this large
potential gas discovery which has closure over an area of up to 200
square kilometers. The gross best estimate of prospective resources
for Bogal are 1.8 trillion cubic feet of gas based on a third-party
independent resource assessment. The Company currently has two
optional slots on the Great Wall drilling rig used to drill the
Sala-1 well that are available for this appraisal program. 
The Company believes there is a very strong market for gas
development in Kenya and have already engaged in discussions with
power companies and the government to potentially fast track a gas to
power project that could add significant value and create benefits
for the people of Kenya. In 2013 the Government of Kenya launched its
"+5000 MW by 2016 - Power to transform Kenya" initiative with
ambitious plans to increase Kenya's power generating capacity by
5,000 Mega Watts in 40 months. This plan includes significant
generating capacity fuelled by imported LNG and coal which are
currently being bid. The discovery of indigenous gas in significant
quantities in Block 9 has the potential to offer a far more cost
effective fuel source for these power projects that will also provide
positive environmental and local development benefits. Significant
interest exists with development agencies and commercial independent
power producers to partner on power developments in Kenya. 
Africa Oil CEO Keith Hill stated, "We are very excited about the
opening a new basin and the possibilities of bringing significant
value to the Company by our Block 9 discovery. Not only is there a
great need for power in Kenya, there is also the potential for
downdip oil and for additional prospects on trend. We have a number
of leads along this basin bounding fault and additional seismic data
is being considered. We continue to have a very active exploration
and appraisal program in both Kenya and Ethiopia and have made
significant progress in moving the South Turkana pipeline and
development program forward in cooperation with the Kenyan
government." 
The Company is also pleased to update additional exploration and
appraisal activities in Kenya and Ethiopia. 
In Kenya, the Company has 4 additional rigs active in the South
Turkana Basin where oil discoveries have previously been announced at
Ngamia, Twiga, Agete, Amosing, Ekales, Etuko and Ewoi.  
The PR Marriott 46 rig has recently completed the Ngamia-2 well which
was drilled 1.7 km from the Ngamia-1 discovery well to test the
northwest flank of the prospect. The well encountered up to 39 meters
of net oil pay and 11 meters of net gas pay and appears to have
identified a new fault block trap north of the main Ngamia
accumulation. The reservoirs were high quality with more than 200
meters of net reservoir sands with good permeability inferred from
MDT sampling. The well has been suspended for testing and the rig
will continue to drill up to 4 additional appraisal wells in the
Ngamia field area for an extended well test program. A 3D seismic
program is currently being concluded over the field area which should
allow for detailed mapping of the fault trends. 
The SMP-5 rig has completed testing operations on the Agete-1 well
where it confirmed the Auwerwer pay previously released, the well
flow rate was tested at 500 barrels of oil per day. This rig is now
currently on location at the Ewoi-1 discovery and is preparing to
test, after which it will continue to be used to test discovery and
appraisal wells in this basin.  
The Weatherford 804 rig is currently drilling the Agete-2 downdip
appraisal well and will then move to drill the Etom prospect located
7 kilometers north of the Agete discovery along the basin bounding
'string of pearls' trend.  
The Sakson PR-5 rig is drilling ahead on the Amosing-2 downdip
appraisal well, with a planned sidetrack, and will then move to drill
the Kodos and Epir (formerly Aze) prospects, which will be the first
exploratory wells to test the Kerio Basin, located immediately
adjacent to the prolific S. Lokichar basin. 
Finally, the Exalo 205 rig is drilling ahead on the Gardim prospect,
located in the Chew Bahir basin in the South Omo block in Ethiopia.
The partnership is in discussions on the next prospect to be
considered for drilling in this block. 
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 within a world-class exploration play fairway
with a total gross land package in this prolific region in excess of
215,000 square kilometres. 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 Toronto Stock 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. 
Cautionary Statements regarding Well Test Results 
Drill stem tests are commonly based on flow periods of 1 to 5 days
and build up periods of 1 to 3 days. Pressure transient analysis has
not been carried out on all well tests and the results should
therefore be considered as preliminary. Well test results are not
necessarily indicative of long-term performance or of ultimate
recovery. 
ON BEHALF OF THE BOARD 
Keith C. Hill, President and CEO 
Africa Oil's Certified Advisor on NASDAQ OMX First North is Pareto
Securities AB. 
Contacts:
Africa Oil Corp.
Sophia Shane
Corporate Development
(604) 689-7842
africaoilcorp@namdo.com
www.africaoilcorp.com
 
 
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