Africa Oil Corp. (“Africa Oil”, “AOC” or the “Company”) (TSX:AOI)(OMX:AOI) is pleased to report an update on activities in the South Lokichar basin, Kenya.

Drilling Programme

Tullow Oil, Maersk Oil, and Africa Oil (the “Joint Venture Partners”) plan to recommence drilling activities in the South Lokichar oil basin located in Blocks 10BB and 13T in Kenya in the fourth quarter of 2016 with an initial programme of four wells and the potential to extend this by a further four wells. The first two wells will be the Etete and Erut prospects in the north of South Lokichar basin. Other potential prospects in the programme include further appraisal of the Ngamia and Amosing fields to target un-drilled flanks, with an aim of extending the size of these existing discoveries. In addition, the Joint Venture is planning an extensive water injection test programme in the fourth quarter of 2016 to collect data to optimise the field development plans. Africa Oil holds a 25% interest in Blocks 10BB and 13T.

The Joint Venture Partners received a three year extension to the Second Additional Exploration Period for a period of three years (expiring 18 September 2020) on Blocks 10BB and 13T.

Outside of the South Lokichar Basin, the result from the basin opening Cheptuket-1 well in the Kerio Valley Basin in Block 12A was announced in March 2016. The well encountered good oil shows, seen in cuttings and rotary sidewall cores, across an interval of over 700 metres and post-well analysis is still in progress. A FTG survey over Block 12A commenced earlier this month to gain further data on this prospective area. Further exploration activities in Block 12A and Africa Oil’s other remaining unexplored acreage, continue to be evaluated. Africa Oil holds a 20% interest in Block 12A.

Development

The Government of Kenya announced that it intends to run a crude oil pipeline from South Lokichar to the port of Lamu. The Joint Venture Partners have signed a Memorandum of Understanding with the Government of Kenya which confirms the intent of the parties to jointly progress the development of a Kenya crude oil pipeline. The pipeline Joint Development Agreement is currently being finalized and is expected to be signed in the third quarter of 2016. The Joint Venture Partners continue to progress the technical, environmental and social studies and tenders required to proceed to FEED for both the upstream and pipeline projects. Both FEED studies are expected to start in early 2017.

In addition to progressing the full field development, an Early Oil Pilot Scheme (EOPS) transporting oil from South Lokichar to Mombasa, utilising road or a combination of road and rail, is being assessed. The EOPS would provide technical and non-technical information that will assist in full field development planning, utilising existing upstream wells and oil storage tanks to initially produce approximately 2,000 bopd gross around mid-2017, subject to agreement with National and County Governments.

About Africa Oil Corp.

Africa Oil Corp. is a Canadian oil and gas company with assets in Kenya and Ethiopia. The Company is listed on the Toronto Stock Exchange and on Nasdaq Stockholm under the symbol “AOI”.

For more information, please visit: http://www.africaoilcorp.com

For additional information on this project, please visit our Projects OGP database