a oil pi f o h e t af ian oil pioneer of onshore east africa oil pi f o h e t af ian oil pioneer of...

A Oil Pi f O h E t Af iAn Oil Pioneer of Onshore East Africa

Corporate PresentationMarch, 2014

A Lundin Group Company

A FRONTIER EXPLORATION SUCCESS STORY

• Size Does Matter– Secured exploration area the size of the entire North Sea – First Mover Advantage

– Brought in strong partners to fund and collaborate on exploration program (Tullow, Marathon)

– Identified 11 new rift basins, most of which have multi-billion barrel potential

• High intensity, high impact exploration program adds value– Extensive seismic programs unlock potential of all basins

– Drilled 7 consecutive discoveries in South Lokichar BasinDrilled 7 consecutive discoveries in South Lokichar Basin

– Over 600 MMBO contingent resources discovered to date as estimated by Operator*

• The best is yet to come– Over 100 leads and prospects identified

– Six new basin opening wells to be drilled in next 12 months

Seven rigs currently operating with at least six rigs full time for foreseeable future– Seven rigs currently operating, with at least six rigs full time for foreseeable future

2

*Tullow is LSE listed and therefore does not report resources in accordance with NI51‐101. Please refer to Africa Oil’s press release dated September 3, 2013 for details of the prospective and contingent resources by prospect and lead, including the geologic chance of success.

THE NEXT NORTH SEA?Lokichar Basin Confirmed as major oil province– 11 more basins and 100+ prospects to go

North Sea Reserves:60+ BBO

Tertiary/Cretaceous Rifts Unrisked Gross Best Estimate of Prospective Resources 23 BBO1

Exploration Wells: 2,408Prospective Resources 23 BBO1

Exploration Wells: Tertiary: 11, Cretaceous: 12

3100 km

1Please refer to Prospective and Contingent Resources slide detailing specific contingencies relating to the classification of resources and cautionary statements.

100 km100 km

2014 PROGRAM GOALS

• Continue to add resources and de-risk South Lokichar BasinD ill t i i t i t– Drill out remaining prospect inventory

– Appraise existing and future discoveries with aid of new 3D seismic

– Update third party resource report in early 2nd quarter to include new discoveries at Agete, Ekales, Amosing and Ewoi – include appraisal drilling and test results from 1st quarter

– Initiate Extended Well Test (EWT) at Twiga field to confirm reservoir properties

• Open up at least one new basinOpen up at least one new basin– Drilling to commence on three of the six new basin targets in the first half of 2014

– Seismic programs planned to be completed in at least four future target basins

• Move forward aggressively on development project– Working closely with Kenyan government on infrastructure projects with focus on pipeline

J i d ti t d l l f j i t K U d t i li j t– Joined consortium to develop plans for joint Kenya – Uganda export pipeline project

– Initiated Environmental and Social Impact Assessment (ESIA) studies and Front End Engineering Design (FEED) studies on pipeline and facilities projects

4

– Goal is to have project sanction by end of 2015 / early 2016

STEP UP COMMUNITY ENGAGEMENT Local Employment and Contracts• Ensure a transparent process for awarding local contracts and

hiring local staff – community involvement critical

Capacity Building• Opening new local vocational training center

• Build on needs assessment study to match current local training capabilities, suggested enhancement and employment requirements

• Establish an entrepreneurial advisory panel to assist locals to create new businesses required to support oil development projects

• Explore community based companies based on conservancy model

Better CommunicationBetter Communication• Opened 3 new offices in Turkana to more effectively

communicate ongoing operations, address grievances and manage expectations

5

• Better engage groups on issues such as land and water use, environmental issues, archeology sensitivity and drought relief

IMPROVE DRILLING PERFORMANCE

70

80• Smectite clays cause hole problems with

Tullow Kenya Drilling Performance (Days/1000m – excludes testing)

40

50

60

70 Smectite clays cause hole problems with water based drilling muds, controlled with improved mud chemistry

• Use of synthetic-based muds from early

Basin opening well - sidetracked

10

20

30

40 y y2014 will deliver further performance improvement (Twiga-2 is the first well)

• Improved contracts deliver 25% cost

0

10p

reduction

• Reduced rig move durations

• Testing off-line with more cost efficient testTesting off-line with more cost efficient test rig

• South Lokichar basin wells now running at $15mm to $20mm untested$15mm to $20mm untested

• New basin opening wells will be $25mm to $30mm untested due to additional rig move, civil engineering & logistics costs

6

c e g ee g & og s cs cos s

Smectite in oil Smectite in fresh water in 5 minutes!

2014 Exploration

Tullow-Operated:

ShimelaExploration:•Amosing √ (Discovery)•Ewoi √ (Discovery)•Emong (Ngamia West)Gardim Emong (Ngamia West)•Ekunyuk•Etom•Ekosowan•Dyepa

Kiboko

Gardim

El Kuran(off map)

Dyepa •Aze•Kiboko •Shimela •GardimAze

Sala

Etom

Ewoi (discovery)

Gardim

AOC-Operated Exploration:•Sala

Dyepa

Emong

Bahasi

Ewoi (discovery) Sala

New Age-Operated Exploration:•El Kuran-3 (testing)

Ekunyuk

Bogal

Ekosowan

Amosing(discovery)

Emong

INSET MAP

50 km 7

Lokichar Basin Exploration & Appraisal through 2014

Upcoming Wells:

•Amosing - √ Discovery

Gross Best Estimate Contingent (2C) Resources to date:368 MMBO (gross)1

1 2013 Competent Persons Report (CPR)CPR pre dated Agete Ekales Amosing & Ewoi

Etom NorthBest-Estimate Gross Resources:Prospective : 234 MMBO

Etom Complex – Spud 1H 2014

•Ewoi - √ Discovery

•Emong (Ngamia West)

•Et

Etuko-1 (2013), TD: 3051m~40m net pay in Auwerwer & U. LokhonePossible 50m net in Lower LokhoneEtom

CPR pre-dated Agete,Ekales, Amosing & Ewoi DiscoveriesEtom

North

Etom Complex Spud 1H, 2014Best-Estimate Gross Resources:Prospective : 467 MMBO

Agete–1 (2013): New Discovery100m net pay, Sampled oilPre-drill Best-Estimate Gross Resources: •Etom

•Ekunyuk

•Ekosowan

Best-Estimate Gross Resources:Contingent (2C) : 100 MMBO

Etuko

Twiga South-1 (2012), TD: 3227m>70m net pay: 2,812 bopd constrained

Best-Estimate Gross Resources:

Agete

Twiga South Ewoi– Spud Q3, 2013, -Discovery

P D ill B t E ti t G

Resources:Prospective : 276 MMBO

•EtukoTest and Appraisal

•Twiga Appraisal

Ewoi

Ekales-1 (2013) TD:2,554mPre-Drill Best-Estimate Gross Resources:

Best Estimate Gross Resources:Contingent (2C) : 87 MMBOProspective : 132 MMBO

Ekales

Pre-Drill Best-Estimate Gross Resources:Prospective : 317 MMBOLoperot

Loperot-1 (Shell, 1992), TD: 2950mProspective net pay included with Ewoi estimated

•Ngamia Appraisal

•Agete Appraisal

EkunyukResources:Prospective : 234 MMBO

3D Outline:550 sqkm

Ngamia & Emong

Ngamia-1 (2012), TD: 2340m>200m net pay: 3,200 BOPD constrained

Best-Estimate Gross Resources:Contingent (2C) : 180 MMBO

Ekunyuk– Spud Q2, 2014 Best Estimate Gross Resources:Prospective : 203 MMBO

Seismic:

•Ngamia-Twiga 3D Ekosowan13T

550 sqkmg

AmosingContingent (2C) : 180 MMBOProspective : 242 MMBO (includes Emong)

10km

Amosing- Spud Q4, 2013 - DiscoveryPre-Drill Best-Estimate Gross Resources:Prospective : 172 MMBO 10BB

8

g g

(550 sqkm)Ekosowan

Block 12A

10km

Resource estimates are gross best estimates of “Prospective” resources from a Third Party Independent Resource Assessment, except when noted as “Contingent”. Please refer to Prospective and Contingent Resources slide detailing specific contingencies relating to the classification of resources and cautionary statements.

Ekosowan, Spud Q4, 2014Best-Estimate Gross Resources:Prospective : 153 MMBO

12A

Ekales-Twiga-Agete-Etom Prospect AreaEtom North

Etom NorthwestBest-Estimate Gross

Resources81 MMBO

Etom NorthBest-Estimate Gross

Resources234 MMBO

COS: 21-25%Etom East

Best-Estimate Gross Resources

42 MMBO

Enlarged Map

Etom ComplexBest-Estimate Gross

Resources

COS: 29% COS: 21-25%

467 MMBOCOS: 25-38%

Agete-1 DiscoveryPre-drill Best-Estimate Gross Resources:276 MMBO, COS: 54%

Twiga South-1 DiscoveryBest-Estimate Gross Resources:Contingent (2C): 87 MMBOProspective: 132 MMBO, COS: 64%

Ekales-1 DiscoveryPre-drill Best-Estimate Gross

Resources: 234 MMBO, 56% COS5 km

9

Depth Structure Top Auwerwer Reservoirs

COS: Geologic Chance of Success (%)

Resource estimates are gross best estimates of prospective resources from Third Party Independent Resource Assessment except where noted as “Contingent”. Please refer to Prospective and Contingent Resources slide detailing specific contingencies relating to the classification of resources and cautionary statements.

“The Rift Flank Play” - Ewoi Discovery & Ekunyuk Prospect’

Depth Structure: Top Lokhone Source Rock

Large Structural Traps

Enlarged Map

o o e Sou ce oc

5kmPossible Stratigraphic Component

Ewoi- DiscoveryPre-drill Best-Estimate

Gross Resources317 MMBO(COS: 34%)

Etuko-1 Discovery (2013)Best-Estimate Gross Resources:Contingent (2C) : 100 MMBO

(COS: 34%)

EkunyukBest-Estimate

Gross Resources

Loperot-1 Discovery (1992)Best-Estimate Gross Prospective Resources:(Included with Ewoi estimate)

G oss esou ces203 MMBO(COS: 34%)

Resource estimates are gross best estimates of prospective resources from Third Party Independent Resource Assessment except

“C f

10COS: Geologic Chance of Success (%)

where noted as “Contingent”. Please refer to Prospective and Contingent Resources slide detailing specific contingencies relating to the classification of resources and cautionary statements.

High Quality Auwerwer ReservoirEkales Core PlugPorosity 23.6% & Perm 13.2 Darcies

100000

Auwerwer Core Data

Twiga

10000

Ekales

Ngamia

Etuko

1000

ity m

d

100Perm

eabi

li

• Porosity 15% to 30%10

• Permeability 50 mD to multi Darcy

• Waxy sweet crude 25 – 38 deg API110 15 20 25 30

11

1110 15 20 25 30

Porosity %

South Lokichar Basin Significant Discovered Resource Upside(Based on most recent CPR report effective July 31, 2013)

Gross Contingent Resources*Gross Contingent Resources*

1000mmbo

3C2C 851

Appraisal Candidates by end 2014

483600

800Ngamia & Twiga South to be fully appraised by end 2014

368216

147 120200

400 396

220234EWT

Excludes Prospective Resource upside & recent

18087 100147 120

0Ngamia Twiga South Etuko Total

3D S i i

Appraisal Plans:• Multiple appraisal wells planned through to end of

2014

p p &Ekales/Agete/Amosing/Ewoi discoveries3D Seismic

2014• Establishment of Area of Interest (AOI) – allows

coordinated exploration & appraisal activities• 550sq km 3D seismic programme commencing in 2013

121 This summary chart was prepared by Company management for the convenience of readers.2 Please refer to the Company’s press release dated September 3, 2013 for details of the contingent resources by discovery.

• Extended well testing to assist in proving of volumes and characterisation of reservoir quality and connectivity

South Lokichar Basin Building World Class Resource Base

b

South Lokichar BasinBest Estimate Gross Contingent Resources,Gross Risked and Unrisked Prospective Resources

Exploration Candidates by end 2014

3,500

4,000 mmbo

Drilling program to end 2014 60% t 70% f S th

2,500

3,000 accesses 60% to 70% of South

Lokichar Basin prospective resources

3,301

1,500

2,000

2C resource

368

1,213

0

500

1,000 2C resource increase of

557% since 2012

0 2C Prospective

Risked Prospective

Unrisked 1 This summary table was prepared by Company management for the convenience of readers.2 Please refer to the Company’s press release dated September 3, 2013 for details of the prospective and contingent resources byprospect and lead, including the geologic chance of success.

3 Risked resources have been calculated and summed by the company after risking prospects and leads individually. Geological Chance of S ccess (GCOS) aries ith each prospect or lead

13

Success (GCOS) varies with each prospect or lead. 4 Net Prospective and Contingent Resources are stated herein in terms of the Company’s net working interest in the properties. Due to the very immature nature of these Resources, net estimates have not been computed as net entitlement volumes under the PSAs/PSCs. In this regard the volumes stated herein will exceed the volumes which will arise to AOC under the terms of the PSAs/PSCs.

5 There is no certainty that any portion of the Prospective Resources will be discovered. If discovered, there is not certainty that the discovery will be commercially viable to produce any portion of the resources.

2014 Exploration Outside of Lokichar-Focus on Opening New Basins

• Chew Bahir Basin (South Omo Block)New seismic identified large inventory of prospects

Prospects supported direct hydrocarbon indicators

2 wells planned

• Western Shore, Lake Turkana (10BA)Latest seismic confirms large prospect inventory

Several interesting prospects drillable onshoreSeveral interesting prospects drillable onshore

2 wells planned

• South Kerio Basin (Block 10BB)

Western ShoreChew Bahir

• South Kerio Basin (Block 10BB)New seismic identifies Ngamia-style play

Several prospects & leadsA B i

South KerioAze

2 wells planned

• Anza Basin (Block 9)

Anza Basin Aze

14

( )Spud Sala Feb. 2014

Potential to extend the Sudan play into Kenya

Chew Bahir Basin (South Omo Block)

Chew Bahir BasinZorit

Wemay NESIR

Jigra

Jigra S.Sila

Best-Estimate Gross Resources

ShimelaBest-Estimate Gross

Resources48 MMBO

Shimela S.

241 MMBO

East BM

GardimBest-Estimate

Gross Resources89 MMBO

Sorene

100 km

• Possible basin-opener • Spud first well March 2014• Large prospect inventory

CherebaBest-Estimate Gross

Resources166 MMBO

• Large prospect inventory• DHI’s, AVO anomalies

visible over some prospects

KesamiKesamiBest-Estimate

Gross Resources 20 MMBO

Tertiary

Chereba S.

Kesami SEBest-Estimate

G

15

Marker 3

Shala 10km



Chew Bahir Basin Prospects (South Omo Block)Shi l 48 MMBO

CB Marker 3

SW NE

Shimela: 48 MMBOBest-Estimate Gross Resources Sila: 241 MMBO

Best-Estimate Gross ResourcesNW SE

Jigra: 5 MMBO Best-Estimate Gross Resources

CB Marker 5

CB Marker 7

CB Marker 3

CB Marker 5

Line CB-09 Line CB-40

CB Marker 7

Line CB 09

Jigra

Sila: 241 MMBOBest-Estimate Gross Resources

Gardim: 89 MMBOBest-Estimate Gross Resources

Chereba: 166 MMBOBest-Estimate Gross Resources

N S

ShimelaSila

Gardim

Resource estimates are gross best

16

Kesami

10km

CB-11

Kesami SE


Line CB-11

Newly-Awarded Rift Basin Area PPSA• PPSA award follows 3-year Joint Study• Extends AOC position in Tertiary Rift Basins• Frontier area, no existing seismic data or wells

Rift Basin AreaRift Basin Area42,519 sq km • Completed 37,000 sq km Full Tensor Gradiometry survey

• Fieldwork confirming nearby source rocks• Preparing to acquire 2D Seismic Survey• AOI operates (50% WI), Marathon (50%)

Newly acquired FTG

50km

Newly acquired FTG

JimaJimaSource rocks at surface Tar reported

Volcanic Volcanic CenterCenter

JimaJima

TerchaTerchaEocene-Miocene shales & lignitesTOC’s up to 16%

Overmature (Ro>1.5)

along shoreline

Basins of Interest

Volcanic Centers

Oil slicks identified on landsat

Eocene-Miocene oil shalesTOC’s up to 59%

Immature (Ro = .33)

GochoGocho

1750km

Miocene black shalesTOC’s: 5-7%

Early Mature for Oil (Ro = .6-.8)

Dyepa Prospect, South Kerio Basin (Block 10BB)

S Kerio ANew prospects from ongoing seismic program

S Kerio G

Estimated prospective resources in the 50-100 MMBO class, pending CPR audit Dyepa

South Kerio

S Kerio C• Two possible basin-openers• Ngamia-type traps large number of follow-on prospects

100 km

S Kerio D

Ngamia type traps, large number of follow on prospects• Try to confirm extension of Lokhone source rocks• Spud first well mid 2014

DyepaNW SE

S Kerio E Lukwa (formerly Mamba)

Mrkr 5

Mrkr 3

Tertiary Marker 3 Ti St t

S Kerio F

Mrkr 1

Time Structure0 10km

18

Aze Prospect- North Kerio Basin (Block 10BB)Time Structure Lower

Pliocene Marker

5km

Block 10BA

Block 10BB

Aze: 343 MMBOBest-Estimate Gross Resources (1)

(1) Resource estimates are gross best estimates of prospective resources from Third Party Independent Resource Assessment except where noted as “Contingent”. Please refer to Prospective and Contingent Resources slide detailing specific contingencies relating to the l ifi ti f d

Aze

classification of resources and cautionary statements.

W E

25km

• Aze prospect to spud Q3 2014Aze prospect to spud Q3, 2014• Possible basin-opener (North Kerio)• Large 4-way anticlinal closure• Infill seismic program underway

Pio Mkr

19

• Several follow-on prospects mapped

Lake Turkana Western Shore Prospects (Block 10BA)

• 1,558 km of new onshore and marine seismic significantlmarine seismic significantly increased prospect inventory

S i i i iti t t d• Seismic acquisition concentrated along western shore

Kiboko• Large prospects, different play

types, drillable from land

Kiboko

Shaba

Kifaru

• Uncertain stratigraphy between sub-basins

Samaki Lake Turkana

• ‘Bright spots’ seen in new offshore seismic

20

• Spud first well Q3, 201410 km

Lake Turkana Western Shore Prospects (10BA)Kiboko

Line 2012-36

Western Shore

Mrkr 5

KibokoBest-Estimate


Shore

Line 2012-36

Mrkr 1

ShabaBest-Estimate


Lake Turkana

Samaki (projected)Kifaru

KifaruBest-Estimate


Line 2012-32-TZ Marine

Flat Spots

Onshore

Line 2012-32TZ

Samaki(new, from

recent seismic)

Plio. Mrkr

Resource estimates are gross best

5 kmPlio. Volc

21

estimates of prospective resources from Third Party Independent Resource Assessment except where noted as “Contingent”. Please refer to Prospective and Contingent Resources slide detailing specific contingencies relating to the classification of resources and cautionary statements.

Time StructureTertiary Marker-1

Anza Graben, Block 9: Extension of the Sudan Play

• Cretaceous Basin on trend with South Sudan with over 6 billion barrels of oil discovered along trend

• Play concept confirmed at Paipai wellPlay concept confirmed at Paipai well

• Bahasi-1 drilled to 2,900m in Basement (P&A), late trap formation, minor shows. Surface volcanics

Sala:Best-Estimate


• Sala-1 will drill to 3,400m to test ‘old structure’ and rift-bounding fault play, Spud Feb. 20, 2014

• AOC Operates (50% WI) Marathon (50%)

Ndovu

AOC Operates (50% WI), Marathon (50%)

SW NESala-1

Bahasi-1 P&A

Tert. MarkerBogal 1 Discovery:

Best-Estimate Gross Resources1.88 TCFG

L. Cretaceous

L. Tertiary


22

Basementy

Basin Opening Strategy 2013/2014

New Basin De-Risking ScheduleGross Best Estimate Unrisked Prospective Resources

mmbo

New Basin De-RiskingBest Estimate Net Unrisked & Risked Prospective Resources

1H 2H 2015+

8,012

7 000

8,000

9,000mmbo

Net Unrisked Best Estimate Prospective ResourcesNet Risked Best Estimate Prospective Resources

Need to switch order of basins

2014 2014 2015+

5,696

5,000

6,000

7,000 p

being drillled north Lokichar and North Kerio to switch positions

2,000

3,000

4,000p

522 690

0

1,000

2013/14 Program Total Prospective Resources

1 This summary table was prepared by Company management for the convenience of readers.2 Please refer to the Company’s press release dated September 3, 2013 for details of the prospective and contingent resources byprospect and lead, including the geologic chance of success.

3 Risked resources have been calculated and summed by the company after risking prospects and leads individually. Geological Chance of

23

y p y g p p y gSuccess (GCOS) varies with each prospect or lead.

4 Net Prospective and Contingent Resources are stated herein in terms of the Company’s net working interest in the properties. Due to the very immature nature of these Resources, net estimates have not been computed as net entitlement volumes under the PSAs/PSCs. In this regard the volumes stated herein will exceed the volumes which will arise to AOC under the terms of the PSAs/PSCs.

5 There is no certainty that any portion of the Prospective Resources will be discovered. If discovered, there is not certainty that the discovery will be commercially viable to produce any portion of the resources.

What you will see by end 2014

1H 2014 2H 2014(Timing of well results)

Basin OpenersSala(Anza)

Shimela(Chew Bahir #1)

Dyepa(S. Kerio #1)

Gardim(Chew Bahir #2)

Kiboko(W. Turkana #1)

Aze(N.Kerio-1)

Lokichar Drill Out

Lokichar Appraisal

EkunyukEwoi EtomAmosing Emong

Ngamia-2 Agete-2

Ekosowan

Lokichar AppraisalEtuko-2 Twiga-2 Twiga-4 Twiga-3 Ngamia-3 Amosing-2

EWT

LokicharDevelopment

Gov’t Kenya Pipeline tender & Pre-FEED

Long-term Development Plan Definition

• 6 Basin Openers• Drill key Lokichar Prospects

24

Drill key Lokichar Prospects• Appraise Ngamia, Twiga, Agete & Amosing• Define development way forward

World Class Development Project

• Seven discoveries from seven wells prove prolific light oil South Lokichar basin with significant running room

• South Lokichar Basin exceeds threshold volumes for development

• Kenyan & Ugandan Presidents agree joint export pipeline

• Concept work on pipeline and offshore loading*

• Concept work on pipeline and offshore loading complete

• Concluded pipeline cooperation agreement between Kenyan & Ugandan Joint Venturesbetween Kenyan & Ugandan Joint Ventures

• Pipeline Pre-FEED and ESIA underway

• Project sanction anticipated by end of 2015 / early 2016

25*Tullow public disclosure

AOI Corporate Summary

• Funding 2014 Forecast O&G Expenditures (gross): $814MM

101.4 79.7 Drilling

g

• $450MM equity issuance completed Oct-2013

• Funding in place through mid-2015

• $43 5MM Marathon farmout carry dedicated to

p (g ) $

539.4

Seismic

DevelopmentStudies

• $43.5MM Marathon farmout carry – dedicated to Block 9, Block 12 and Rift Basin Area fully utilized in 2014

• Drilling focused 2014 exploration budget:

93.8 Studies

Other• Drilling: 70%

• Seismic: 6%

• Development Studies: 15% 2014 Forecast O&G Expenditures (net): $348MM

• Capital Structure

• 310.5MM Shares

• 18 3MM Options

p ( ) $

50 7

35.1 Drilling

Seismic18.3MM Options

• Nil warrants

• Nil debt243.3

19.4

50.7 Seismic

DevelopmentStudies

2626

19.4 Other

Step Up Community Engagement

Africa Oil is committed to addressing the challenge of

Risk Management and Value Creation

sustainability - delivering value to our shareholders, while providing economic and social benefits to impacted communities and minimizing our environmental footprint.

•To create a working environment such that we cause no harm to people, and where we minimize our impact on the environment.

•To create a secure and safe working environment for our peopleTo create a secure and safe working environment for our people and assets

•To conduct our business in an honest and ethical manner.

•To enter into dialogue and engagement with key stakeholders, conducted in the spirit of transparency and good faith.

•To deliver tangible and sustainable benefits that contribute to theTo deliver tangible and sustainable benefits that contribute to the social and economic well being of citizens in our host countries.

•To support the development of financial transparency and good governance mechanisms

27

governance mechanisms.

•To support and protect internationally recognized human rights.

A History of Value Creation

Company 2002 Recent NotesCompany 2002 Recent Notes

Tanganyika $0.55/share$13.5 million MC

$31.50/share$1.9 billion MC

Sold to Sinopec 2008

Valkyries $0.45/share $16.00/share Sold to Lundin Petroleum 2006y $ /$4 million MC

$ /$750 million MC

Africa Oil $0.27/share$1 million MC

$9.24/share$2.9 billion MC

Active

di l $ / h $ / hLundin Petroleum U $0.41/shareU $101 million MC

$23/share$6.9 billion MC+ Enquest spin off US $1.5 billion MC

Active

BlackPearl $0.25/share$2.1 million MC

$2.18/share$645 million MC

Active

ShaMaran $0.175 (2003)$6.7 million MC

$0.46/share$377 million MC

Active

12 Year value increase: $128MM => $15 BillionAverage share price increase: 39x

28

Average share price increase: 39x

Opportunity Summary

• Africa Oil has the best onshore acreage position in East Africa and• Africa Oil has the best onshore acreage position in East Africa, and perhaps the largest upside exploration portfolio in the world

• The Ngamia, Twiga, Etuko, Ekales, Agete, Amosing and Ewoi g g g gdiscoveries have significantly de-risked the South Lokichar Basin –expect very high future success rate

Th C h 7 ti i ith 5 i K (4 tl i th• The Company has 7 active rigs with 5 in Kenya (4 currently in the Lokichar basin) and 2 in Ethiopia with at least 20 wells planned in 2014

• New basin opening wells have chance for high impact growth and step change in share valuation

• Research coverage from 26 analysts with an average target price of $13.43 per share

29

AOI has a Strong Management TeamKeith Hill, President and CEOMr. Hill has over 27 years experience in the oil industry including international new venture management and senior exploration positions at Occidental Petroleum and Shell Oil Company. His education includes a Master of Science degree in Geology and Bachelor of Science degree in Geophysics from Michigan State University as well as an MBA from the University of St. Thomas in Houston. Prior to his involvement with Africa Oil, Mr. Hill was President and CEO of Valkyries where he led the company through rapid growth and ultimately a highly successful $700 million takeover by Lundin Petroleum. In addition, Mr. Hill was one of the founding directors of Tanganyika Oil which was recently the subject of a $2 billion takeover by Sinopec International Petroleum.of a $2 billion takeover by Sinopec International Petroleum.

Ian Gibbs, CFOIan Gibbs is a Canadian Chartered Accountant and a graduate of the University of Calgary where he obtained a bachelor of commerce degree. He has been a member of Africa Oil’s Board of Directors or Executive Management Team since 2006. Since 2004, Mr. Gibbs has been the Chief Financial Officer of several TSX‐Venture and TSX Listed international oil exploration and production companies including Valkyries Petroleum Corp. and Tanganyika Oil Company Ltd. and has been actively involved in the day to day operation of these companies with operations in Russia Syria Egypt Kenya Ethiopia and Puntland (Somalia) Prior to 2004 Mr Gibbs spent several years working in Russia andoperation of these companies with operations in Russia, Syria, Egypt, Kenya, Ethiopia and Puntland (Somalia). Prior to 2004, Mr. Gibbs spent several years working in Russia and Kazakhstan in the upstream oil and gas industry. As CFO of Tanganyika Oil, in 2008, he played a pivotal role in the $2 billion acquisition by Sinopec International Petroleum. Prior to Tanganyika Oil, Mr. Gibbs was CFO of Valkyries Petroleum which was the subject of an $750 million takeover.

Nick Walker, COOMr. Walker has 28 years of industry experience including 17 years with Talisman Energy Inc. where he served as Executive Vice‐President of International Operations West as well as country manager positions in the UK and Malaysia/Vietnam He has extensive international upstream oil and gas experience across Europe Latin America Asia and Africawell as country manager positions in the UK and Malaysia/Vietnam. He has extensive international upstream oil and gas experience across Europe, Latin America, Asia and Africa and has led operating businesses in all those areas. He started his career as a petroleum engineer with BP plc. and also worked in senior management positions at Bow Valley Energy Inc. He previously served on the Board of Oil & Gas UK, the trade association representing the UK oil and gas business. His education includes a Bachelor of Science Degree in Mining Engineering from Imperial College in London, a Master of Science Degree in Computing Science from University College in London and an MBA from City University Business School, also in London.

James Phillips VP Business DevelopmentJames Phillips, VP Business DevelopmentBefore joining Africa Oil, Mr. Phillips was Vice President Exploration‐Africa and Middle East for Lundin Petroleum AB where he played a pivotal role in securing the majority of Africa Oil’s current portfolio. Mr. Phillips is a graduate of the University of California, Berkeley and San Diego State University where he obtained BS and MS degrees, both in Geology. He has over 30 years of experience in the oil industry including senior positions with Shell Oil company and Occidental including heading up Oxy’s African exploration ventures.

Paul Martinez VP ExplorationPaul Martinez, VP ExplorationDr. Martinez, most recently Director of International Business Development with Occidental Petroleum Corporation, has over 23 years of domestic US and international experience in oil and gas exploration and development, including projects in the Texas Gulf Coast, Permian Basin, Rockies, Latin America, Africa, Middle East, and Russia. He has held overseas management positions for Oxy in Libya, Oman and Peru. Dr. Martinez holds Master of Science and Doctorate degrees in applied earth sciences from Stanford University and a Bachelor of Science degree in petroleum geology from the University of Texas at Austin. Dr. Martinez is based in Africa Oil’s Calgary office and is responsible for all geological and geophysical activities of the Company.

30

Alex Budden, VP External RelationsBefore joining Africa Oil Alex Budden served as a Diplomat for the British Foreign & Commonwealth Office for 21 years. His international experience has seen him serve in Africa, Asia, the Middle East, Russia, the Balkans and North America. Throughout his career he has focused on international security, conflict, governance, human rights, energy and environment issues and specializes in government and security relations, complex stakeholder management and strategic communications work.

Cautionary Statements

This document has been prepared and issued by and is the sole responsibility of Africa Oil Corp. (the “Company”) and its subsidiaries. It comprises the written materials for a t ti t i t d/ i d t f i l i th C ’ b i ti iti B tt di thi t ti d/ ti f thi d tpresentation to investors and/or industry professionals concerning the Company’s business activities. By attending this presentation and/or accepting a copy of this document,

you agree to be bound by the following conditions and will be taken to have represented, warranted and undertaken that you have agreed to the following conditions.

This presentation may not be copied, published, distributed or transmitted. The document is being supplied to you solely for your information and for use at the Company’s presentation to investors and/or industry professionals concerning the Company’s business activities. It is not an offer or invitation to subscribe for or purchase any securities and nothing contained herein shall form the basis of any contract or commitment whatsoever This presentation does not constitute or form part of any offer or invitation to whatsoever. sell or issue, or any solicitation of any offer to purchase or subscribe for, any shares in the Company in any jurisdiction nor shall it or any part of it nor the fact of it di t ib ti f th b i f b li d i ti ith t t it t i t t d i i i l ti th t d it tit t d tiits distribution form the basis of, or be relied on in connection with, any contract commitment or investment decision in relation thereto nor does it constitute a recommendation regarding the securities of the Company. The information contained in this presentation may not be used for any other purposes.

This update contains certain forward looking information that reflect the current views and/ or expectations of management of the Company with respect to its performance, business and future events including statements with respect to financings and the Company’s plans for growth and expansion. Such information is subject to a number of risks, uncertainties and assumptions, which may cause actual results to be materially different from those expressed or implied including the risk that the Company is unable to obtain required financing and risks and uncertainties inherent in oil exploration and development activities. Readers are cautioned that the assumptions used in the

ti f h i f ti h k t i f il d d h i l d t th C ’ bilit t l d l d d t t d il dpreparation of such information, such as market prices for oil and gas and chemical products, the Company’s ability to explore, develop, produce and transport crude oil and natural gas to markets and the results of exploration and development drilling and related activities, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking information. The Company assumes no future obligation to update these forward looking information except as required by applicable securities laws.

Certain data in this presentation was obtained from various external data sources, and the Company has not verified such data with independent sources. Accordingly, no representation or warranty, express or implied, is made and no reliance should be placed, on the fairness, accuracy, correctness, completeness or reliability of that data, and

h d t i l i k d t i ti d i bj t t h b d i f tsuch data involves risks and uncertainties and is subject to change based on various factors.

No reliance may be placed for any purposes whatsoever on the information contained in this presentation or on its completeness. The Company and its members, directors, officers and employees are under no obligation to update or keep current information contained in this presentation, to correct any inaccuracies which may become apparent, or to publicly announce the result of any revision to the statements made herein except where they would be required to do so under applicable law, and any opinions expressed in them are subject to change without notice, whether as a result of new information or future events. No representation or warranty, express or implied, is given by the Company or any of its subsidiaries undertakings or affiliates or directors, officers or any other person as to the fairness, accuracy, correctness, completeness or reliability

f th i f ti i i t i d i thi t ti h th i d d tl ifi d h i f ti d li l th ill b t l i kof the information or opinions contained in this presentation, nor have they independently verified such information, and any reliance you place thereon will be at your sole risk. Without prejudice to the foregoing, no liability whatsoever (in negligence or otherwise) for any loss howsoever arising, directly or indirectly, from any use of this presentation or its contents or otherwise arising in connection therewith is accepted by any such person in relation to such information.

For additional details on the Company, please see the Company’s profile at www.sedar.com.

31

Prospective and Contingent ResourcesThere is no certainty that any discovered resources referred to in this presentation will be commercially viable to produce. There is no certainty that any portion of the undiscovered resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the resources.

Risks associated with discovering oil:The estimation of prospective resource volumes for high-risk and poorly calibrated basins can be subject to large variation from the introduction of new information. The estimates presented herein are based on all of the information available at the effective date of the resource estimate. New data or information is likely to have a material effect on the resource assessment values. Since the effective date of the resource estimates provided, the Company has continued to actively explore, with multiple seismic crews operational and several exploration wells drilled. There p p y y p p p pis no certainty that any additional resources will be discovered. Once discovered, there is no certainty that the discovery will be commercially viable to produce any portion of the resources. Given that most of the resources in the portfolio are in leads that require additional data to fully define their potential it is likely that significant changes to the resource estimates will occur with the incorporation of additional data and information.

Risk Associated with the Estimates:In the event of a discovery, basic reservoir parameters, such as porosity, net hydrocarbon pay thickness, fluid composition and water saturation, may vary from those assumed by the Company’s independent third party resource evaluator affecting the volume of hydrocarbon estimated to be present. Other factors such as the reservoir pressure, density and viscosity of the p y p p y g y p p y yoil and solution gas/oil ratio will affect the volume of oil that can be recovered. Additional reservoir parameters such as permeability, the presence or absence of water drive and the specific mineralogy of the reservoir rock may affect the efficiency of the recovery process. Recovery of the resources may also be affected by well performance, reliability of production and process facilities, the availability and quality of source water for enhanced recovery processes and availability of fuel gas. There is no certainty that certain mineral interests are not affected by ownership considerations that have not yet come to light.

Substantial Capital Requirements:Africa Oil expects to make substantial capital expenditures for exploration, development and production of oil and gas reserves in the future. The Company's ability to access the equity or debt markets may be affected by any prolonged market instability. The inability to access the equity or debt markets for sufficient capital, at acceptable terms and within required time frames, could have a material adverse effect on the Company's financial condition, results of operations and prospects.

Ability to Execute Exploration and Development Program:It may not always be possible for Africa Oil to execute its exploration and development strategies in the manner in which the Company considers optimal. Execution of exploration and development strategies is dependent upon the political and security climate in the host countries where the Company operates and agreement amongst the Company joint venture partners. The Company's exploration and development programs in East Africa may involve the need to obtain approvals from relevant authorities who may require conditions to be satisfied or the exercise of discretion by the relevant authorities. It may not be possible for such conditions to be satisfied.

Absence of a Formal Development Plan including Required Funding:There is no certainty the Company will prepare and have approved a development plan for any portion of the contingent resources or that the Company will be successful in funding any development should such a plan be prepared. General market conditions, the sufficiency of such a development plan and the outlook regarding oil and gas prices are some factors that will influence the availability of funding or the Company’s ability to attract oil and gas industry partners to participate in the project.

Access to Infrastructure:Currently there is limited local infrastructure for the production and distribution of oil and gas in the countries in which Africa Oil operates. Export infrastructure to enable other markets to be accessed has not yet been developed and is contingent on numerous factors including, but not limited to, sufficient reserves being discovered to reach a commercial threshold to justify the construction of export pipelines and agreement amongst various government agencies regulating the transportation and sale of oil and gas. Africa Oil is working with its joint venture partners and government authorities to evaluate the commercial potential and technical feasibility of discoveries made to date and potential future discoveries.

Additional Risks:

32

Additional risks associated with the estimate of the prospective and contingent resources include risks associated with the oil and gas industry generally (i.e. financing; operational risks in exploration, development and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of estimates and projections related to production; costs and expenses; health, safety, security and environmental risks; and the uncertainty of resource estimates), drilling equipment availability and efficiency, the ability to attract and retain key personnel, the risk of commodity price and foreign exchange rate fluctuations, the uncertainty associated with dealing with governments and obtaining regulatory approvals, and the risk associated with international activities.

a oil pi f o h e t af ian oil pioneer of onshore east africa oil pi f o h e t af ian oil pioneer of...

Documents