Africa Oil Announces Private Placement and Provides an Operational and Financial Update - Seite 2

Outside the South Lokichar Basin, the Africa Oil - Tullow joint venture new basin opening exploration program includes the Engomo-1 well currently drilling and potentially the Cheptuket well in Block 12A, a PSC commitment well that needs to be drilled before September 2016.

Given the changing focus of the 2015 work program to appraisal and development studies of the South Lokichar Basin discoveries, the Africa Oil - Tullow partnership has released one of its four drilling rigs and plans to release two additional rigs by the end of the second quarter of 2015. Africa Oil owns a 50% working interest in Kenya Blocks 10BA, 10BB and 13T with Tullow (operator) holding the remaining 50%. Africa Oil owns a 20% working interest in Block 12A Kenya with Tullow acting as Operator.

Outside of the Africa Oil - Tullow joint venture blocks, the work program is focused on the Rift Basin Area Block in Ethiopia where a 2D seismic crew has mobilized to complete a minimum 400 kilometre land and lake survey. Africa Oil is Operator and holds a 50% interest in the Ethiopia Rift Basin Area Block with Marathon Oil Ethiopia Limited B.V., holding the remaining 50%.

With regard to currently ongoing wells, the Engomo-1 well is currently drilling and is expected to complete drilling in March 2015. In addition, two of the appraisal wells currently being drilled on the Ngamia and Ekales structures will test deeper objectives below the primary Auwerwer reservoirs. The Company will announce the results of these wells in due course.

Q4 2014 working capital and impairments

Africa Oil entered the fourth quarter of 2014 with US$273 million in cash and US$149 million of net working capital. The Company anticipates ending 2014 with cash of between US$155 million and US$170 million and net working capital of between US$10 million and US$25 million. The Company is in the process of finalizing its 2014 year end audit and will release its 2014 audited financial statements on February 26, 2015 with a conference call to follow. Accounts payables grew during the fourth quarter of 2014 due to increased operational field activities and costs incurred related to the 2015 work program including the extended well tests in the Amosing and Ngamia fields which have commenced.