Africa Oil Operations Update and Conference Call - Seite 3

In addition, the partnership has acquired over 1,100 metres of whole core from the South Lokichar wells and an extensive program of detailed core analysis is ongoing. A focus of the core program is to better assess oil saturation and to refine the recovery factors of the main reservoir sands. Early core analysis results support the reservoir assumptions used in the contingent resource estimate.

The key reservoir uncertainties around the contingent resource estimate are areal net pay distribution and connectivity, which has a significant bearing on recovery factor, and oil saturation in the reservoir sands. The ongoing appraisal drilling program and early Amosing EWT results provides significant comfort that the reservoir sands are connected over an area larger than the assumed development well spacing, which will narrow the range of uncertainty around recovery factors. And the early detailed core analysis is reducing the uncertainty around oil saturations in the reservoir. The program planned during 2015 is aimed at growing and narrowing the range of uncertainty of the contingent resources estimates, and early results are positive in this respect.

The Engomo-1 exploration well in Block 10BA was drilled to a total depth of 2,353 metres utilizing the SMP-106 rig. The well encountered interbedded siltstones, sandstones and claystones, becoming more tuffaceous and tight until reaching a total depth in basement. No significant oil or gas shows were encountered and the well has been plugged and abandoned. The prevalence of tight facies in the wellbore may be due to the well's close proximity to the basin bounding fault. Engomo was the first well drilled in the very large North Turkana Basin and is located west of Lake Turkana where numerous naturally occurring oil slicks and seeps have been observed. Analysis will be focused on understanding how this result impacts the remaining prospectivity in the basin. The SMP-106 rig will now be demobilized.

Africa Oil owns a 50% working interest in Kenya Blocks 10BA, 1BB and 13T with Operator Tullow Oil holding the remaining 50%.

The 2015 work program will include multiple appraisal and exploration wells in the South Lokichar Basin, 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. The recent equity raise will provide funding for the critical work program necessary to move the Lokichar Basin development forward to a development plan stage.