Africa Oil Announces Private Placement and Provides an Operational and Financial Update

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Feb. 12, 2015) -

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Africa Oil Corp. ("Africa Oil", "AOC" or the "Company") (TSX:AOI)(OMX:AOI) is pleased to announce that it intends to raise US$ 100 million in new equity through a private placement of new common shares and has retained Dundee Securities Europe LLP and Pareto Securities as joint bookrunners (together the "Bookrunners") to advise on and effect the private placement on a reasonable commercial efforts basis at a price per share to be determined through a book-building process (the "Offering").

Operational update and use of proceeds

The net proceeds from the private placement will be used primarily to fund ongoing appraisal and pre-development activities in the South Lokichar Basin where the Company and its partner, Tullow Oil plc ("Tullow") have discovered over 600 million barrels of gross contingent oil resources (best estimate). The Company expects that the net proceeds from the private placement, together with the Company's existing working capital, will be sufficient to perform necessary work and analyses to upgrade its assets in the South Lokichar basin with the intent of submitting a Field Development Plan ("FDP") around the end of 2015.

In light of the current and forecast short term oil price environment, the Company has worked closely with Tullow to focus the 2015 work program and budget on advancing the South Lokichar development in Blocks 10BB and 13T (Kenya) by undertaking activities aimed at increasing resource certainty. These activities include:

• At least four appraisal/exploration wells in the South Lokichar Basin;
• Extended Well Testing (EWT's) in the Amosing and Ngamia fields; and
• Reservoir and engineering studies (including extensive core analysis).

In addition, the Africa Oil - Tullow joint venture will continue to work closely with the Government of Kenya and the Uganda upstream partners to advance the regional oil export pipeline.