VANCOUVER, BRITISH COLUMBIA--(Marketwired - July 24, 2013) - Africa Oil Corp. (News - Market indicators)(OMX:AOI) ("Africa Oil" or the "Company") is pleased to announce the commencement of drilling operations on its Ekales prospect located in Block 13T in the Lokichar Basin in Kenya. The well was spud on July 22, 2013 and has a planned total depth of 2500 metres and is expected to approximately 2 months to drill and evaluate. The primary objectives are the Auwerwer and Lower Lokhone sandstones already established to be highly productive reservoirs at the nearby Ngamia and Twiga discoveries. The prospect is a three way fault closure against the main basin bounding fault and is located directly between, and approximately 15 km northwest of the Ngamia discovery and 7 km south of the Twiga discoveryalong the "string of pearls" trend. The well is being drilled by the Weatherford #804 rig. The Company holds a 50% working interest in this prospect along with operator Tullow Oil Plc. Please see attached map, visit the following link: http://media3.marketwire.com/docs/130724AOIBasinsMap.pdf
Africa Oil CEO Keith Hill commented, "The Ekales prospect is probably one of the lowest risk prospects in our inventory. The proximity and similarity to the existing Ngamia and Twiga discoveries give us a high degree of confidence that we will find oil and continue to build the discovered resources necessary for commercial volume threshold. Our pace of exploration and appraisal continues to accelerate with the anticipated arrival of three additional rigs in Kenya and Ethiopia in the next 60 days for a total of six rigs, four of which will be operated by Tullow Oil." The recently announced Etuko discovery, on the flank of the Lokichar basis has opened a new play fairway and provided further confirmation of the world class potential of the Lokichar Basin."
In the South Omo block in Ethiopia, mobilization of the OGEC 75 rig to the Tultule location is underway. This prospect is located 4 kilometres from the Sabisa-1 well which was recently abandoned after proving the existence of the essential hydrocarbon elements of source, seal and reservoir in this frontier basin. It is being drilled on a well-defined horst block feature which should provide good trapping characteristics. The Company holds a 30% working interest in this prospect along with operator Tullow Oil Plc (50%) and Marathon Oil (20%).
The Etuko well in Block 10BB, where an oil discovery was recently announced in shallower reservoirs, has now reached a total depth 3100 metres and log and MDT evaluation have commenced. The rigs for the Ogaden Basin (Block 7&8) El Kuran-3 prospect in Ethiopia (Africa Oil non-operated working interest: 30%) and the Block 9 Bahasi prospect in Kenya (Africa Oil operated working interest: 50%) are in country and spud of El Kuran-3 is expected in August and Bahasi-1 in September. One additional lightweight rig has been contracted for testing and drilling operations in the Lokichar Basin and should also be operational in September.
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. New discoveries have been announced on all sides of Africa Oil's virtually unexplored land position including the major Albert Graben oil discovery in neighbouring Uganda. Similar to the Albert Graben play model, Africa Oil's concessions have older wells, a legacy database, and host numerous oil seeps indicating a proven petroleum system. Good quality existing seismic show robust leads and prospects throughout Africa Oil's project areas. The Company is listed on the TSX Venture Exchange and on First North at NASDAQ OMX-Stockholm under the symbol "AOI".
ON BEHALF OF THE BOARD
Keith C. Hill, President and CEO
Africa Oil's Certified Advisor on NASDAQ OMX First North is Pareto Öhman 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.
