NEWS RELEASE TRANSMITTED BY Marketwired
FOR: Africa Oil Corp.
TSX SYMBOL: AOI
OMX SYMBOL: AOI
AUGUST 28, 2014
Africa Oil Operational Update and Conference Call
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Aug. 28, 2014) - Africa Oil Corp.
("Africa Oil" or the "Company") (TSX:AOI)(OMX:AOI) is
pleased to provide an update on its operations in Kenya and Ethiopia.
The Etom-1 well in the Lokichar Basin on Block 13T (Kenya) has reached a total
depth of 2000 meters and has discovered oil in the primary Auwerwer and Upper
Lokhone target formations. The well encountered a range of between 5 and 20
meters of potential net pay sands based on wireline logging and drilling data.
Oil has been recovered in MDT sample chambers which appears to be of similar
quality to the oil found in the discoveries to the south. There is an
additional 400 meters of porous sands in the Auwerwer and Lokhone Formations
which also confirms the extension of thick reservoir sections into the northern
portion of the basin. Oil and gas shows were noted throughout during drilling
of the well confirming the extension of the petroleum system to the northern
portion of the basin. Based on these positive drilling results, the partnership
has agreed to extend the current 3D seismic survey over the northern portion of
the basin where several additional large prospects have been identified by 2D
seismic. The well has been suspended for potential future drill stem testing.
Africa Oil holds a 50% working interest in this block, which is operated by
Tullow Oil plc ("Tullow") which holds the remaining 50% interest.
Drilling on the Ngamia-3 and Amosing 2/2A appraisal wells also in the Lokichar
Basin on Block 10BB (Kenya) has also been completed. The results of these wells
appear to confirm the thickness and lateral extent of the Auwerwer sands at
both locations and also has extended the known oil column significantly downdip
which will extend the proven field areas. The range of thickness of Auwerwer
reservoir quality sands in all six penetrations of these two structures is
between 146 and 220 meters and the sands appear consistent over the field
areas. Net pay was encountered over multiple reservoir zones over a gross
interval ranging from 500 to 1500 meters. Pressure data seems to indicate that
there could be pressure communication between many of these reservoirs. The
upcoming extended well test programs on both of these fields will be designed
to evaluate reservoir connectivity and help constrain estimates of flow rates
and recovery factors for field development planning which are expected to
commence early in 2015. Africa Oil holds a 50% working interest in this block,
which is operated by Tullow which holds the remaining 50% interest.
Well testing has been completed on the previously announced Ewoi discovery on
the eastern flank of the Lokichar Basin in Block 10BB (Kenya). The main zone of
interest tested approximately 50 barrels of oil per day from the lower Lokhone
sands which were relatively thin and of moderate reservoir quality. Data from
the well may suggest that the wellbore may have been located in a downdip
position and the Company is considering updip appraisal opportunities on this
structure. The lightweight rig is currently testing the Twiga-2A appraisal well
where two to three tests are planned.
The Company plans to move the two rigs that are completing drilling operations
on the Etom and Amosing locations to the Kodos and Ekosowan locations and both
are expected to spud in September. The Kodos well is the first well to be
drilled in the highly prospective Central Kerio basin in Kenya Block 10BB and
will target a three way dip closed feature against the main basin bounding
fault similar to the Ngamia/Amosing/Twiga trend in the Lokichar Basin. The
Ekosowan well is located on the western 'string of pearl' prospects
in the Lokichar basin and is directly south of the Ngamia and Amosing fields
which have demonstrated the thickest net pay and reservoir in the basin. Both
wells are expected to be completed in the fourth quarter. Two additional new
basin opening wells are planned to spud before the end of the year in the North
Kerio Basin (Epir-1) and the North Turkana Basin in Block 10 BA (Engomo-1).
The Company has also spud an appraisal well on the previously announced Sala
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. An upper gas bearing interval tested dry gas at a maximum
rate of 6 mmcf/d from a 25 meter net pay interval. The Sala-2 appraisal well is
designed to test the updip extent of this main reservoir sand. A lower interval
at Sala-1 also tested gas at low rates of dry gas from a 50m potential net pay
interval and will also be accessed at this up-dip location. Africa Oil is the
Operator of Block 9 with a 50% working interest. Marathon Oil Kenya Limited
B.V. has the remaining 50% interest.
In Ethiopia, the Company continues to advance plans to commence a 2D seismic
program in the Rift Basin Area Block which is expected to start later this
year. The Company and its partners have also indicated their intent to enter
the next exploration period in the South Omo block. Due to the extensive
drilling and seismic program, no additional work commitments will be required
during this period. The partnership plans to evaluate the four wells drilled to
date to determine if additional drilling is warranted and, if so, which portion
of the block is considered most prospective. The Company has informed the
Ethiopian Government and its partners that it intends to withdraw from Blocks 7
and 8 in the Somali region. Although the El Kuran-3 well did demonstrate some
oil and gas potential, the Company does not feel it is warranted to continue
efforts at this time due to concerns over reservoir quality and commerciality.
Africa Oil CEO Keith Hill stated, "We are quite pleased with the Etom
discovery which extends the proven petroleum system to the northern portion of
the Lokichar basin and derisks several large prospects in that area. We are
also encouraged that the Ngamia and Amosing appraisal wells have found thick
reservoir and pay intervals that will give us further confidence that these two
fields to anchor our development project and look forward to the results of the
extended wells tests to confirm the reservoir performance. Our development
activities are progressing in support of a Lokichar basin oil development
project sanction at the end of 2015/early 2016. We have an exciting exploration
portfolio in the new basin opening wells, of which we plan to drill 6 by the
end of next year. We are confident that our early successes will be repeated in
at least one additional new basin as we move forward to develop the large
reserves we have discovered to date."
The Company will hold a conference call to discuss these latest results on
Thursday, August 28, 2014 at 7:30 a.m. PDT or 10:30 a.m. EDT or 4:30 p.m.
CEST). A presentation will be available for viewing on the Company's
Please call in 10 minutes before the conference starts and stay on the line (an
operator will be available to assist you).
Call-in number for the conference call (North America): +1 416 340 2216
Call-in number for the conference call (North America Toll Free): +1 866 225
Call-in number for the conference call (Europe): +800 9559 6849
A replay of the telephone conference will be available approximately one hour
after the completion of the conference call until September 4, 2014.
Replay number in North America: +1 905 694 9451
North America (Toll Free) is: +1 800 408 3053
The pass code for the replay is: 1251028
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 kilometers. The East African Rift
Basin system is one of the last of the great rift basins to be explored. The
Company is listed on the Toronto Stock Exchange and on NASDAQ OMX-Stockholm
under the symbol "AOI".
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
ON BEHALF OF THE BOARD
Keith C. Hill, President and CEO
FOR FURTHER INFORMATION PLEASE CONTACT:
Africa Oil Corp.
INDUSTRY: Energy and Utilities - Oil and Gas
-0- Aug/28/2014 06:00 GMT
Press spacebar to pause and continue. Press esc to stop.