Africa Oil Corp. ("Africa Oil", "AOC", or "the Company") (TSX VENTURE:AOI)(OMX:AOI) is pleased to announce that an updated independent assessment of the Company's contingent and prospective resources on its Kenyan and Ethiopian exploration properties has been completed by Gaffney, Cline & Associates ("Gaffney Cline", or "GCA"). The independent assessment was carried out in accordance with the standards established by the Canadian Securities Administrators in National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities. The effective date of the report is July 31, 2013.
It should be noted that these estimates do not include the Company's Puntland (Somalia) oil and gas interests which is available at www.sedar.com under Horn Petroleum Corporation, Africa Oil's 45% owned subsidiary.
Keith Hill, Africa Oil's President and Chief Executive Officer, commented: "Gaffney Cline's independent assessment confirms a significant increase to contingent and risked prospective resources in the Tertiary rift basins in Kenya and Ethiopia. Based on the drilling and testing program over the past year we have confirmed the South Lokichar Basin contains gross contingent resources of 368 million barrels of oil, an increase of 557%. In addition gross risked prospective resources of 1,213 million barrels of oil are estimated for the South Lokichar Basin. This level of resource exceeds the threshold for development and development studies have commenced. We continue to aggressively explore with three seismic crews active and are ramping up drilling activity with plans to have a total of six rigs (four operated by Tullow Oil) operating in the fourth quarter of 2013. We expect the next 18 months to be transformational as we drill-out the prolific South Lokichar Basin and open up a number of highly prospective basins on the Tertiary rift trend."
Africa Oil's holdings include working interests in operated and non-operated Production Sharing Contracts (PSC's) in Kenya, Ethiopia and Puntland (Somalia) in East Africa. These Blocks contain relatively under explored plays in basins that have proven and productive analogs. Since the effective date (June 30, 2012) of Gaffney Cline's previous evaluation of prospective resources, highlights of the Company's exploration activities in Kenya and Ethiopia include:
- Drilling and testing the Twiga South-1 well in Block 13T (Kenya) resulting in an additional oil discovery and demonstrating high quality Auwerwer sands containing light waxy sweet oil.
- Production testing the Ngamia-1A discovery in Block 10BB (Kenya) which significantly increased the assessment of net oil pay encountered by the well;
- Drilling the Etuko-1 well in Block 10BB (Kenya) resulting in an additional oil discovery.
- As a result of these additional South Lokichar Basin discoveries, several prospects and leads in the Tertiary rift have been de-risked and the volume of contingent oil resources has increased;
- Drilling the Paipai-1 well in Block 10A (Kenya) demonstrating a working petroleum system in the Anza Basin;
- Drilling the Sabisa-1 well in the South Omo Block (Ethiopia) demonstrating a working petroleum system in the South Omo Basin;
- The acquisition of approximately 5,000 km of 2D seismic, increasing the number of mapped prospects and leads;
Please refer to the tables below detailing the Company's contingent oil resources and prospective oil and gas resources by prospect and lead as provided by Gaffney Cline effective July 31st, 2013.
To view Tables 1-12, click on the following link: http://media3.marketwire.com/docs/895788t.pdf