VANCOUVER, BRITISH COLUMBIA--(Marketwired - July 27, 2016) - 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".
Additional Information
The information in this release is subject to the disclosure requirements of Africa Oil Corp. under the Swedish Securities
Market Act and/or the Swedish Financial Instruments Trading Act. This information was publicly communicated on July 27, 2016 at
2:00 a.m. Toronto Time.
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.
ON BEHALF OF THE BOARD
"Keith C. Hill", President and CEO