The Company has launched a major exploration initiative throughout its East Africa portfolio which includes at least 7 seismic acquisition programs (totaling just under 7,000 kilometers), 6 Full Tensor Gravity ("FTG") surveys, extensive environmental studies, acquisition of high resolution gravity and magnetic data, as well as geochemical surveys. Over the next 15 months, multiple exploratory wells are planned to test the numerous prospects identified throughout the blocks.

AOC, with partner Tullow, have acquired more than 50,000 line kilometers of FTG in Blocks 10BB, 10BA, 13T, 12A, 10A, and South Omo of Kenya and Ethiopia. The use of this new technology, developed by the US military, provides much greater resolution than traditional gravity and magnetic reconnaissance methods. This enhanced resolution allows operators to more precisely define prospective areas prior to acquiring seismic data. . FTG seismic surveys are being acquired in a timeframe of months, at 5- 10% of the cost of a loose grid of 2D seismic data. This is allowing operators to focus their seismic programs towards prospect-delineation sooner, and get to drillable prospects faster and more cost-effectively. Tullow has successfully used FTG to provide a structural model of fault blocks in the Albert Graben.

KENYA

The Company and Tullow, its operating partner in each of the Kenyan Blocks other than Block 9, are actively exploring for oil as described below.

Block 10BB

The Company and Tullow have integrated and interpreted all newly acquired (610 km) and vintage 2D seismic data. A number of prospects have been identified and are being high graded for the planned drill program. The Ngamia (Camel) prospect (previously named Fise-1) has been selected by the joint venture for the initial well in Block 10BB. The prospect will test the oil potential in Miocene age sandstones within a three way dip closure against the West Lokichar rift fault. Ngamia is directly analogous to successful oil accumulations drilled by Tullow and partners early in the exploration efforts in the Lake Albert graben of Uganda. The contract for the drilling rig has been awarded to Weatherford International. The Ngamia well is expected to spud in December of 2011. The Company and its partner recently completed a FTG survey to further define prospective areas of the block that lack 2D seismic data.

Block 10BA

The Company and Tullow recently completed a FTG survey over most of Block 10BA, covering all of Lake Turkana and most of the adjacent onshore areas. A seismic acquisition contract has been awarded to the Bureau of Geophysical Prospecting ("BGP") for 1350 km of 2D data to be acquired in both the offshore lake environment and nearshore transitional areas adjacent to Lake Turkana. The offshore data will be acquired using state of the art Ocean Bottom Cable ("OBC"), whereby the recording receivers will be positioned on the bottom of the lakebed. Pre-seismic environmental studies have been completed and the seismic survey is expected to commence in the first quarter of 2012.

Block 10A

The Company and Tullow have integrated and interpreted all newly acquired (750 km) and vintage 2D seismic data. A number of prospects have been identified and are being high graded for the planned drilling program. The Paipai-1 prospect has been selected by the joint venture for the initial well in Block 10A. The prospect will test the oil potential in Cretaceous age sandstones within a four way dip closure downthrown to the Lag Bagal fault, the northern bounding fault on the Anza Trough. Preparations for drilling, including purchase of materials, execution of drilling related contracts, civil works, and environmental permits are either completed or underway. The Block 10A well is expected to spud in the second quarter of 2012 using the same Weatherford rig as will be used in Block 10BB.

Block 13T

The Company and Tullow have awarded contracts for both a FTG survey and seismic acquisition. The FTG survey was completed early in the fourth quarter of 2011. The recording of approximately 600 km of 2D seismic data by BGP is planned to commence late in the fourth quarter of 2011. Environmental impact studies have been completed and government permits have been obtained. Interpretation of reprocessed vintage seismic data has revealed a string of interesting structures on trend with the Ngamia feature of Block 10BB. The seismic program will focus on further delineation of these leads to mature them to drillable prospect status and will explore a newly identified rift basin in the western portion of the block.

Block 12A

The Company and Tullow have awarded contracts for both a FTG survey and seismic acquisition. The FTG survey has recently been completed. The recording of at least 520 km of 2D seismic data by BGP is planned to commence in the second quarter of 2012. Environmental impact studies and Government permitting will precede the seismic survey.

Block 9

The Company holds 100% interest in Block 9 and has recently completed the acquisition of 750 km of 2D seismic data. The survey was focused on delineating a drillable prospect in the oil-prone Kaisut sub-basin in the northwestern portion of the block. Newly acquired data is of excellent quality and a number of interesting leads have been identified. Under the terms of the PSA, there is a one well drilling commitment before the end of 2013. The Company has completed a study associated with potential commercialization of gas resources in the 2010 Bogal discovery which could lead to a Bogal re-entry, and testing program. The Company plans to pursue a partner on Block 9 that brings gas development and marketing experience to the joint venture.

ETHIOPIA

South Omo Block

The Company and its operating partner on the Block, Tullow, have recently completed a FTG survey across most of the southern portion of the South Omo Block. The results of the survey were encouraging and have been used to lay out the current 2D seismic survey. A contract with BGP for the acquisition of approximately 1018 km of 2D seismic data has been executed. The seismic recording has recently commenced and is expected to be completed by the end of the first quarter of 2012. Environmental impact studies and government permitting preceded the seismic survey. One exploration well is planned for the second half of 2012.

Ogaden Blocks 7/8

The Company and its partners have integrated and interpreted all newly acquired (430 km) and vintage 2D seismic data over the two blocks. The joint venture is currently focused on developing a better understanding of the large El Kuran oil and gas accumulation in Block 8, discovered in the early 1970's. The Company has completed a reservoir characterization study and drilling engineering review over the El Kuran structure. A revised analysis of the well data has confirmed the presence of light oil in the Jurassic limestones. Preparations for drilling, including purchase of materials, execution of drilling related contracts, civil works, and environmental permits have commenced. Spud of the El Kuran well is not anticipated until late in 2012, at the earliest.

Ogaden Blocks 2/6

Ogaden Blocks 2/6 have been relinquished and Ministerial approval to waive remaining commitments has been obtained. The Company has written off all incurred oil and gas expenditures relating to Blocks 2/6.

Adigala Block

The Company and its partner have completed the first exploration period of three years and have exceeded the contractual work obligations. The Ministry of Mines approved the Company and its partners' entry into the next exploration period on the Adigala Block with amended minimum work commitments. Under the amended work commitments, the Company and its partners are obligated to complete certain geological and geophysical ("G&G") operations, including acquisition of 7,500 square kilometers of full tensor gravity. The partnership expects to begin the full tensor gravity survey late in December of 2011.

Rift Valley Block

The Company completed the acquisition of high resolution gravity and magnetic data over the Rift Valley Block in April 2011. Final processing and interpretation was completed during the third quarter of 2011 which has indicated that a deep sedimentary basin with potential for hydrocarbon charge is located in the southern portion of the block. The block is on trend with highly prospective blocks in the Tertiary rift valley such as Ethiopian South Omo block, and Kenyan blocks 10BA, 10BB, 13T, and 12A. Additionally, the Company mobilized geochemical specialists to collect fluid samples to detect potential oil seeps at the surface and/or margins of the rift lakes, within block. A total of 17 samples were collected of which 3 revealed hydrocarbon signatures.

PUNTLAND (SOMALIA)

Dharoor and Nugaal Valley Blocks

The Company is currently in final preparations to commence a two well drilling campaign in the Dharoor Valley Block, with the first well (Shabeel-1) planned to spud in December of 2011. Drilling locations have been selected over two robust prospects targeting gross best estimated prospective resources of over 300 million barrels each, based on internal estimates. A contract has been awarded to Sakson Drilling and Oil Services who will provide a 1500 horse-power, top drive equipped rig. All drilling related third party service contracts have been executed. The Company has completed sourcing drilling related materials and the majority of materials are on site or on route to the drilling site. Site preparation including the drill site, air strip and ingress route construction have been completed. Water wells are currently being drilled to provide source water for drilling operations.

MALI

Blocks 7 and 11

The Company and its partner, Heritage Oil and Gas Ltd. ("Heritage") have recently completed the acquisition of 848 km of 2D seismic in Block 11 and 243 km in Block 7. Both blocks are located in the Gao Graben which is on trend and adjacent to significant recent gas discoveries. The Company's share of costs for initial seismic and the drilling of the first exploratory well are fully carried by its single partner, Heritage.

The Company has launched a major exploration initiative throughout its East Africa portfolio which
includes at least 10 seismic acquisition programs (totaling over 7,000 kilometers), 6 full tensor gravity
surveys, extensive environmental studies, acquisition of high resolution gravity and magnetic data, as
well as geochemical surveys. Over the next 18 months, multiple exploratory wells are planned to test the
numerous prospects identified throughout the blocks.


KENYA

The Company and Tullow Oil plc. ("Tullow"), its operating partner in each of the Kenyan Blocks other
than Block 9, have completed the work and/or are proposing the work programs, described below.

Block 10BB
The Company and Tullow have integrated and interpreted all newly acquired (610 km) and vintage 2D
seismic data. A number of prospects have been identified and are being high graded for the planned drill
program. The Ngamia (Camel) prospect (previously named Fise-1) has been selected by the joint venture
for the initial well in Block 10BB. The prospect will test the oil potential in Miocene age sandstones within
a three way dip closure against the West Lokichar rift fault. Ngamia is directly analogous to successful oil
accumulations drilled by Tullow and partners early in the exploration efforts in the Lake Albert graben of
Uganda. The contract for the drilling rig has been awarded to Weatherford International. Additional
preparations for drilling, including purchase of materials, execution of drilling related contracts, civil
works, and environmental permits are either completed or underway. Spudding of the Ngamia well is
slated for the fourth quarter of 2011. In addition to drilling operations, the Company and its partner are
currently acquiring a full tensor gravity survey (FTG) to further define prospective areas of the block that
lack 2D seismic data. The survey should be completed in the fourth quarter of 2011.

Block 10BA
The Company and Tullow have initiated a FTG survey over most of Block 10BA, covering all of Lake
Turkana and most of the adjacent onshore areas. Two FTG contractors are working simultaneously to
expedite the survey, which is expected to be completed during the fourth quarter of 2011. A seismic
acquisition contract has been awarded to the Bureau of Geophysical Prospecting ("BGP") for 1350 km of
2D data to be acquired in both the offshore lake environment and nearshore transitional areas adjacent
to Lake Turkana. The offshore data will be acquired using state of the art Ocean Bottom Cable ("OBC"),
whereby the recording receivers will be positioned on the bottom of the lakebed. Pre-seismic
environmental studies are underway and the seismic survey is planned to commence in the fourth
quarter of 2011.


Block 10A
The Company and Tullow have integrated and interpreted all newly acquired (750 km) and vintage 2D
seismic data. A number of prospects have been identified and are being high graded for selection of the
first drilling location. Preparations for drilling, including purchase of materials, execution of drilling related
contracts, civil works, and environmental permits are either completed or underway. The Block 10A well
is expected to spud in early 2012 using the same Weatherford rig as will be used in Block 10BB. In
addition to the drilling operations, a small swath of full tensor gravity (FTG) is being acquired to test the
applicability of the FTG technology in Block 10A. The swath survey should be completed in the third
quarter of 2011.

Block 13T
The Company and Tullow have awarded contracts for both a FTG survey and seismic acquisition. The
FTG survey is underway and is anticipated to be completed by the third quarter of 2011. The recording of
at least 562 km of 2D seismic data by BGP is planned to commence in the fourth quarter of 2011.
Environmental impact studies and government permitting will precede the seismic survey. Interpretation
of reprocessed vintage seismic data has revealed a string of interesting structures on trend with the
Ngamia feature of Block 10BB. The seismic program will focus on further delineation of these leads to
mature them to drillable prospect status.

Block 12A
The Company and Tullow have awarded contracts for both an FTG survey and seismic acquisition. The
FTG survey is underway and is expected to be completed during the third quarter of 2011. The recording
of at least 520 km of 2D seismic data by BGP is planned to commence in January 2012. Environmental
impact studies and Government permitting will precede the seismic survey.

Block 9
The Company holds 100% interest in Block 9 and has recently completed the acquisition of 750 km of 2D
seismic data. The survey was focused on delineating a drillable prospect in the oil-prone Kaisut sub-basin
in the northwestern portion of the block. Newly acquired data is of excellent quality and a number of
interesting leads have been identified. One exploration well is expected to be drilled during 2012.
Additionally, the Company has completed a study associated with potential commercialization of gas
resources in the 2010 Bogal discovery prior to a potential 2012 Bogal re-entry, and testing program. The
Company plans to pursue a partner on Block 9 that brings gas development and marketing experience to
the joint venture.

ETHIOPIA

South Omo Block
The Company and its operating partner on the Block, Tullow, have recently completed a FTG survey
across most of the southern portion of the South Omo Block. The results of the survey are encouraging
and will be used to lay out the upcoming 2D seismic survey. A contract with BGP for the acquisition of at
least 1000 km of 2D seismic data has been executed and base camp construction began in July 2011.
The seismic recording is estimated to commence during the third quarter of 2011. Environmental impact
studies and government permitting will precede the seismic survey.

Ogaden Blocks 7/8
The Company and its partners have integrated and interpreted all newly acquired (430 km) and vintage
2D seismic data over the two blocks. The joint venture is currently focused on developing a better
understanding of the large El Kuran oil and gas accumulation in Block 8, discovered in the early 1970's.
The Company has completed a reservoir characterization study over the El Kuran structure. A revised
analysis of the well data has confirmed the presence of light oil in the Jurassic limestones. The Company
is currently analyzing how best to re-drill and test El Kuran in hopes of proving up movable, commercial
quantities of oil. Preparations for drilling, including purchase of materials, execution of drilling related
contracts, civil works, and environmental permits have commenced. Spud of the El Kuran well is
anticipated in the first half of 2012.

Ogaden Blocks 2/6
Ogaden Blocks 2/6 have been relinquished and Ministerial approval to waive remaining commitments is
expected shortly. The Company has written off all incurred and expected oil and gas expenditures
relating to Blocks 2/6.

Adigala Block
The Company and its partner have completed the first exploration period of three years and have
exceeded the contractual work obligations. Negotiations with the Ministry of Mines to enter the second
period of exploration for the Adigala Block are ongoing. The Company and its partner are proposing
additional geologic and geophysical studies to better understand the subsurface configuration of the
block. In addition, the partnership is contemplating drilling a stratigraphic test well if a suitable light rig
can be secured at reasonable costs.

Rift Valley Joint Study Block
The Company completed the acquisition of high resolution gravity and magnetic data over the Rift Valley
Block in April 2011. Final processing and interpretation is anticipated to be completed during the third
quarter of 2011. The gravity and magnetic interpretation will enable the Company to decide whether to
commit to a further work program under a formal production sharing agreement. The block is on trend
with highly prospective blocks in the Tertiary rift valley such as Ethiopian South Omo block, and Kenyan
blocks 10BA, 10BB, 13T, and 12A. Additionally, the Company mobilized geochemical specialists to collect fluid samples to detect potential oil seeps at the surface and/or margins of the major rift lakes Abaya and Chamo, within the southern portion of the block. A total of 17 samples were collected of which 3 revealed hydrocarbon signatures.

PUNTLAND (SOMALIA)

Dharoor and Nugaal Valley Blocks
The Company is currently in final preparations to commence a two well drilling campaign in the Dharoor
Valley Block, with the first well planned to spud in the fourth quarter of 2011. Drilling locations have been
selected over two robust prospects targeting gross best estimated prospective resources of over 300
million barrels each, based on internal estimates. A contract has been awarded to Sakson Drilling and Oil
Services who will provide a 1500 horse-power, top drive equipped rig. The majority of the drilling related
third party service contracts have been entered into and all outstanding service contracts are expected to
be complete before the end of August.

The Company is actively engaged in sourcing drilling related materials and early stage logistics including
drill site and ingress route construction. A contract has been signed with a water well drilling company
and water well drilling will commence in early September. Mobilization of required personnel and
equipment is planned to allow for spud of the first well, Shabeel-1, during the fourth quarter of this year.

The Puntland Government and Dharoor Valley communities are fully supportive of the drilling project and
have ensured they will do all to allow the project to move forward safely and expeditiously. Specific
milestone target dates have been adjusted by the Puntland Government allowing the Company and
partners to move the drilling start-up to the fourth quarter of 2011. In addition, partial relinquishments in
both the Dharoor Valley and Nugaal Valley agreements have been finalized and approved. The Puntland
Government has also given its approval for the formation of Horn Petroleum and the proposed
transaction with the Company.

MALI

Blocks 7 and 11
The Company and its partner, Heritage Oil and Gas Ltd. ("Heritage") have recently completed the
acquisition of 848 km of 2D seismic in Block 11 and 243 km in Block 7. Both blocks are located in the Gao Graben which is thought to be analogous to other Cretaceous age, oil productive, central African rift
basins. The Company's share of costs for initial seismic and the drilling of the first exploratory well are
fully carried by its single partner, Heritage.

The Company anticipates that 2011 will be a pivotal year in its progression with multiple exploration wells planned to spud during the year, over 4,000km (gross) of two dimensional seismic ("2D seismic") to be acquired and an extensive Full Tensor Gravity ("FTG") program planned to aid in assessing the overall prospectivity of the Tertiary and Cretaceous Rifts. The Company's Board of Directors has approved a $43 million (net) capital budget ($163 million gross exploration expenditures).

Tertiary Rift
Tullow has taken over operatorship and are currently in the process of undertaking Full Tensor Gravity ("FTG") surveys and finalizing the prospect and lead inventory on Block 10BB. FTG is an airborne, high resolution gravity mapping tool which has been successfully utilized in the Lake Albert area of Uganda by Tullow, where gross discovered resources are over 2 billion barrels of oil. This technology will be utilized to provide basement image faulting, reduce uncertainty surrounding the structural configuration and to delineate structures to narrow the focus for subsequent 2D seismic surveys. Environmental impact assessments have been completed on Block 10BB over four potential drill sites and Government permits have been issued. Exploratory drilling is expected to commence in the third quarter of 2011.

FTG will be undertaken on the remainder of the Tertiary Rift blocks (South Omo (Ethiopia), Blocks 10BA, 12A, 13T (Kenya)), all of which will be operated by Tullow. The South Omo FTG survey is nearly 50% complete and a second plane has been contracted to accelerate the Kenyan surveys beginning in June of this year. 2D seismic operations are planned to commence during Q3 2011 and continue through the year on all of these blocks. The 2D seismic acquisition programs on these blocks are planned as follows on a gross basis; 1,000km on the South Omo Block, 1,300km on Block 10BA, and 500km on each of Blocks 12A and 13T.

The Company has completed a block-wide airborne high resolution gravity and magnetic survey on the Rift Valley Block in Ethiopia. In addition, the Company has utilized a specialized satellite imagery technique to observe natural oil seepage on several of the rift valley lakes within the new block. A team was mobilized in early March to ground truth and sample the oil slicks. Samples have been collected and are being analyzed in a US based geochemical laboratory.

Cretaceous Rift
In Block 10A, Kenya, the Company completed recording approximately 800km (gross) of 2D seismic in the first quarter of 2011. Seismic data acquired is currently being processed. The Company has reprocessed all available vintage seismic data with the objective of improving the imaging of the data acquired in the late 1980s. New play concepts have been developed based on the reprocessed data in combination with vintage drilling data. Tullow has taken over operatorship of this block and exploratory drilling is expected to commence in the fourth quarter of 2011.

In Block 9, Kenya, previous operator CNOOC and partner OPIC CHAD elected to relinquish their rights to the block subsequent to the drilling of the Bogal gas discovery. The Company and partner Lion Energy opted to continue into the First Additional Exploration Period which spans 3 years and carries a commitment of one exploration well to be drilled to at least 1500 meters. Current exploration activities in Block 9 are focused on the acquisition of 600km (gross) 2D seismic survey focused on the oil prone Kaisut sub-basin. The seismic crew has recently commenced recording and is anticipated to be completed at the end of the third quarter of 2011.

The Company has initiated a gas commercialization study to better understand alternative options for monetizing natural gas in East Africa, in anticipation of performing extended well tests on the potentially significant gas discovery that resulted from drilling the Bogal 1-1 well in 2010.

Permian-Triassic
The Company completed its seismic acquisition program in the Company's Ogaden area of Ethiopia, acquiring 500 km of 2D seismic in December of 2010. The new data has been integrated with existing seismic to generate a series of new prospect maps. The Company continues to focus efforts on the large El Kuran prospect in the Blocks 7/8 license. The feature was de-risked in 1972 with two wells drilled by Tenneco; both wells recovered small amounts of light oil from Jurassic fractured carbonate reservoirs near 5000 feet. The Company contracted a Dubai-based consulting firm with extensive experience in appraising and developing analogous low porosity carbonate oil reservoirs in the Middle East. The consulting firm will evaluate the resource potential of the El Kuran discovery in addition to offering various options for appraisal and development of the accumulation. The Company plans to drill one well on the El Kuran prospect in 2012 in an attempt to establish commercial oil reserves. The Company holds 55% interest in both Blocks 2/6 and 7/8 licenses.

In Ethiopia, in the Adigala Block, the Company has completed interpretation of the 500 km of 2D seismic that was acquired during 2009. Additional geological and geophysical work is being contemplated, as part of a proposed one year extension. Earlier completed surface geology and sampling has documented the presence of excellent quality source and reservoir along the basin margin. The Company holds a 50% working interest in this Block.

Cretaceous -- Central Africa Rift Trend (Blocks 7 and 11 (Mali))
The Company completed the acquisition of Centric Energy Corp. in the first quarter of 2010, obtaining a 25% interest in Block 7 and 11, which are operated by Heritage Oil Corporation ("Heritage"). Heritage has entered into an agreement with a 2D seismic subcontractor, and is currently in the process of acquiring reconnaissance seismic. The Company's share of seismic expenditures and the drilling of one exploration well will be carried by Heritage.

Jurassic Rift
During 2009, in the Dharoor Block of Puntland, Somalia, the acquisition of 782 kilometers of good quality 2D seismic (comprised of 15 grid lines) was completed. The Company has combined 555 kilometers of previously acquired data into the seismic database which has been mapped to determine exploration well locations. Exploration activities in Puntland are focused on drilling the first exploration well in Somalia in over 20 years. The Company has recently signed a letter of intent with a drilling contractor and plans to spud the first well in the Dharoor Block during the third quarter of 2011. A second well in the Dharoor Block is planned to commence following completion of the first exploration well.

In the Nugaal Block in Puntland, Somalia, AOC acquired more than 4,000 kilometers of existing good quality 2D data which was recorded in the late 1980's. This has enabled the Company to work up an inventory of drilling prospects from which the first exploration well locations will be selected.

The Company anticipates that 2011 will be a pivotal year in its progression with three exploration wells planned to spud during the year, over 4,000km (gross) of two dimensional seismic ("2D seismic") to be acquired and an extensive Full Tensor Gravity ("FTG") program planned to aid in assessing the overall prospectivity of the Tertiary and Cretaceous Rifts. The Company's Board of Directors has approved a $43 million (net) capital budget ($163 million gross exploration expenditures).

Tertiary Rift
In Block 10BB, Kenya, the Company has completed the recording and processing of 610km of 2D seismic. The Company has reprocessed all available vintage seismic data sharpening the imaging and the amplitude response for use in detecting direct hydrocarbon indicators. A surface geochemical survey was completed during the third quarter of 2010, modules were analyzed in order to detect oil and gas seepage from identified prospects and leads on the Block. Tullow has taken over operatorship and are currently in the process of undertaking Full Tensor Gravity ("FTG") surveys and finalizing the prospect and lead inventory. FTG is an airborne, high resolution gravity mapping tool which has been successfully utilized in the Lake Albert area of Uganda by Tullow, where gross discovered resources are over 2 billion barrels of oil. This technology will be utilized to provide basement image faulting, reduce uncertainty surrounding the structural configuration and to delineate structures to narrow the focus for subsequent 2D seismic surveys. Environmental impact assessments have been completed on Block 10BB over four potential drill sites and Government permits have been issued. Exploratory drilling is expected to commence in the third quarter of 2011.

FTG will be undertaken on the remainder of the Tertiary Rift blocks (South Omo (Ethiopia), Blocks 10BA, 12A, 13T (Kenya)), all of which will be operated by Tullow. 2D seismic operations are planned to commence during Q2 2011 and continue through the year on all of these blocks. The 2D seismic acquisition programs on these blocks are planned as follows on a gross basis; 1,000km on the South Omo Block, 1,300km on Block 10BA, and 500km on each of Blocks 12A and 13T.

The Company has initiated a block-wide airborne high resolution gravity and magnetic survey on the Rift Valley Block in Ethiopia. In addition, the Company has utilized a specialized satellite imagery technique to observe natural oil seepage on several of the rift valley lakes within the new block. A team has been mobilized in early March to ground truth and sample the oil slicks.

Cretaceous Rift
In Block 10A, Kenya, the Company expects to be completed recording approximately 850km (gross) of 2D seismic by the end of March 2011. Seismic data acquired is currently being processed. The Company has reprocessed all available vintage seismic data with the objective of improving the imaging of the data acquired in the late 1980s. New play concepts are being developed based on the reprocessed data in combination with vintage drilling data. Tullow has taken over operatorship of this block and exploratory drilling is expected to commence in the fourth quarter of 2011.

In Block 9, Kenya, the CNOOC-operated Bogal-1 exploration well was spud on October 28, 2009. The well reached a total depth of 5,085 meters. Gas shows and petrophysical analysis of wireline logs indicated multiple gas pay zones totaling approximately 91 meters in Lower Cretaceous sandstones. Preliminary testing on two potential gas pay zones has been completed, with only minimal flow of gas from each zone. Analysis of the test results indicated that neither test was in communication with the extensive fracture network proven by the abundant fluid losses during drilling and the Formation Micro Imaging (FMI) log. The well was plugged pending further analysis of the test results to determine the feasibility of an additional testing program. The Company plans to investigate gas commercialization alternatives in East Africa, in anticipation of performing extended well tests on the potentially significant gas discovery that resulted from drilling the Bogal 1-1 well in 2010.

Exploration activities in Block 9 in 2011 are focused on a planned 600km (gross) 2D seismic survey focused on the oil prone Kaisut sub-basin.

Jurassic Rift
During 2009, in the Dharoor Block of Puntland, Somalia, the acquisition of 782 kilometers of good quality 2D seismic (comprised of 15 grid lines) was completed. The Company has combined 555 kilometers of previously acquired data into the seismic database which has been mapped to determine exploration well locations. Exploration activities in Puntland are focused on drilling the first exploration well in Somalia in over 20 years. The Company plans to spud the first well in the Dharoor Block during the third quarter of 2011. Activities are currently focused on the identification and contracting of drilling and drilling support contractors willing to operate in Puntland on commercially acceptable terms. A second well in the Dharoor Block is planned to commence following completion of the first exploration well.

In the Nugaal Block in Puntland, Somalia, AOC acquired more than 4,000 kilometers of existing good quality 2D data which was recorded in the late 1980's. This has enabled the Company to work up an inventory of drilling prospects from which the first exploration well locations will be selected.

Permian-Triassic
The Company completed its seismic acquisition program in the Company's Ogaden area of Ethiopia, acquiring 500 km of 2D seismic. The new data has been integrated with existing seismic to generate a series of new prospect maps. The Company continues to focus efforts on the large El Kuran prospect in the Blocks 7/8 license. The feature was de-risked in 1972 with two wells drilled by Tenneco; both wells recovered small amounts of light oil from Jurassic fractured carbonate reservoirs near 5000 feet. The Company plans to drill one well on the El Kuran prospect in early 2012 in an attempt to establish commercial oil reserves. The Company holds 55% interest in both Blocks 2/6 and 7/8 licenses.

In Ethiopia, in the Adigala Block, the Company has completed interpretation of the 500 km of 2D seismic that was acquired during 2009. Additional geological and geophysical work is being contemplated, potentially including basin modeling, field geology and additional seismic data acquisition. Earlier completed surface geology and sampling has documented the presence of excellent quality source and reservoir along the basin margin. The Company holds a 50% working interest in this Block.

Cretaceous - Central Africa Rift Trend (Blocks 7 and 11 (Mali))
AOC completed the acquisition of Centric Energy Corp. subsequent to year end, obtaining a 25% interest in Block 7 and 11, which are operated by Heritage Oil Corporation ("Heritage"). Heritage has entered into an agreement with a 2D seismic subcontractor, and is currently in the process of acquiring reconnaissance seismic. The Company's share of seismic expenditures and the drilling of one exploration well will be carried by Heritage.

Seismic Program

In Block 10BB, Kenya, the Company has completed the recording of 610km of 2D seismic. The seismic data acquired is currently being processed. Processing is approximately 50% complete. The Company has reprocessed all available vintage seismic data sharpening the imaging and the amplitude response for use in detecting direct hydrocarbon indicators. A surface geochemical survey was completed during the third quarter of 2010, modules are in the process of being analyzed in order to detect oil and gas seepage from identified prospects and leads on the Block. Drilling is expected to be initiated in the first half of 2011. The Company currently holds an 80% working interest in this Block, which is expected to reduce to 40% upon completion of farmout with Tullow and amendment to the farmout with Lion.

In Block 10A, Kenya, the Company is reprocessing all available vintage seismic data with the objective of improving the imaging of the data acquired in the late 1980s. New play concepts are being developed based on the reprocessed data in combination with vintage drilling data. The Company intends to acquire 750 km of 2D seismic in the Block. The seismic crew is currently being mobilized from Block 10BB as its seismic acquisition program has been completed. The Company holds a 55% working interest in this Block which is expected to reduce to 30% upon completion of farmout with Tullow and amendment to the farmout with Lion.

Seismic acquisition is in progress in the Company's Ogaden area of Ethiopia. It is anticipated that the 500 km 2D seismic acquisition program will be completed during the fourth quarter of 2010. The seismic program is aimed at previously identified leads in order to mature these leads into drillable prospects. The Company holds a 55% working interest in the Ogaden Blocks.

In Ethiopia, in the Adigala Block, the Company has completed interpretation of the 500 km of 2D seismic that was acquired during 2009. Additional geological and geophysical work is being contemplated, potentially including basin modeling, field geology and additional seismic data acquisition. Earlier completed surface geology and sampling has documented the presence of excellent quality source and reservoir along the basin margin. The Company holds a 50% working interest in this Block.

During 2009, in the Dharoor Block of Puntland, Somalia, the acquisition of 782 kilometers of good quality 2D seismic (comprised of 15 grid lines) was completed. The Company has combined 555 kilometers of previously acquired data into the seismic database which continues to be evaluated to determine exploration well locations.

In the Nugaal Block in Puntland, Somalia, AOC acquired more than 4,000 kilometers of existing good quality 2D data which was recorded in the late 1980's. This has enabled the Company to work up an inventory of drilling prospects from which the first exploration well locations will be selected.

Exploration Drilling

In Block 9, Kenya, the CNOOC-operated Bogal-1 exploration well was spud on October 28, 2009. The well reached a total depth of 5,085 meters. Gas shows and petrophysical analysis of wireline logs indicated multiple gas pay zones totaling approximately 91 meters in Lower Cretaceous sandstones. Preliminary testing on two potential gas pay zones has been completed, with only minimal flow of gas from each zone. Analysis of the test results indicates that neither test was in communication with the extensive fracture network proven by the abundant fluid losses during drilling and the Formation Micro Imaging (FMI) log. The well has been plugged pending further analysis of the test results to determine the feasibility of an additional testing program, which might include fracture and acid stimulation, due to potential wellbore damage during drilling. The Company holds a 20% working interest in this Block which contains a number of excellent oil and gas prone prospects.

The Company has completed a comprehensive interpretation of newly acquired 2D seismic data over the Dharoor Block in Puntland (Somalia). Several large prospects have been identified. Africa Oil and its joint venture partners are in discussion regarding drilling plans for 2010-2011 and continue to seek drilling contractors willing to operate in Puntland (Somalia) on commercially acceptable terms. The Company holds a 65% working interest in this project which is expected to reduce to 45% upon completion of the farmout agreement with Red Emperor.

Additional drilling activity in the Kenya Blocks and the Ethiopian Blocks will await completion of seismic acquisition, processing, and interpretation.

Seismic Program

In Block 10BB, Kenya, seismic acquisition is in progress, with over 120km of 2D seismic recorded out of an anticipated 600km program. It is anticipated that the Block 10BB seismic program will be completed during the third quarter of 2010. The Company has reprocessed all available vintage seismic data sharpening the imaging and the amplitude response for use in detecting direct hydrocarbon indicators. A surface geochemical survey is scheduled to commence during the third quarter of 2010 aimed at detecting oil and gas seepage from identified prospects and leads on the Block. Drilling is expected to be initiated in the first quarter of 2011. The Company holds an 80% working interest in this Block.

In Block 10A, Kenya, the Company is reprocessing all available vintage seismic data with the objective of improving the imaging of the data acquired in the late 1980s. New play concepts are being developed based on the reprocessed data in combination with vintage drilling data. The Company intends to acquire 750 km of 2D seismic in the Block following the Block 10BB seismic acquisition program. The Company holds a 55% working interest in this Block.

Seismic acquisition is in progress in the Company's Ogaden area of Ethiopia. It is anticipated that the 500 km 2D seismic acquisition program will be completed during the fourth quarter of 2010. The seismic program is aimed at previously identified leads in order to mature these leads into drillable prospects. The Company holds a 55% working interest in the Ogaden Blocks.

In Ethiopia, in the Adigala Block, the Company has completed interpretation of the 500 km of 2D seismic that was acquired during 2009. Additional geological and geophysical work is being contemplated, potentially including basin modeling, field geology and additional seismic data acquisition. Earlier completed surface geology and sampling has documented the presence of excellent quality source and reservoir along the basin margin. The Company holds a 50% working interest in this Block.

During 2008, in the Dharoor Block of Puntland, Somalia, the acquisition of 782 kilometers of good quality 2D seismic (comprised of 15 grid lines) was completed. The Company has combined 555 kilometers of previously acquired data into the seismic database and is currently being mapped to finalize exploration well locations.

In the Nugaal Block in Puntland, Somalia, AOC acquired more than 4,000 kilometers of existing good quality 2D data which was recorded in the late 1980's. This has enabled the Company to work up an inventory of drilling prospects from which the first exploration well locations will be selected.

Exploration Drilling

In Block 9, Kenya, the CNOOC-operated Bogal-1 exploration well was spud on October 28, 2009. The well reached a total depth of 5,085 meters. Gas shows and petrophysical analysis of wireline logs indicated multiple gas pay zones totaling approximately 91 meters in Lower Cretaceous sandstones. Preliminary testing on two potential gas pay zones has been completed, with only minimal flow of gas from each zone. Analysis of the test results indicates that neither test was in communication with the extensive fracture network proven by the abundant fluid losses during drilling and the Formation Micro Imaging (FMI) log. The well has been plugged pending further analysis of the test results to determine the feasibility of an additional testing program, which might include fracture and acid stimulation, due to potential wellbore damage during drilling. The Company holds a 20% working interest in this Block which contains a number of excellent oil and gas prone prospects.

Block 9 covers an area of 27,778 square kilometers in the centre of the Anza Basin. The Anza Basin is a NW-SE trending rift basin along trend with the prolific Mesozoic play of southern Sudan. The basin is over 580 kilometers long and 150 kilometers wide with a potential prospective area in excess of 50,000 square kilometers. The basin is filled in places with more than 6,000 meters of Mesozoic and Cenozoic sediments and locally by Plio-Pleistocene basalts. Bouger and residual gravity anomalies have highlighted several sub-basins separated by intra-basin highs. Historic wells drilled in the block have proven the existence of natural gas and possibly oil.

The Company has completed a comprehensive interpretation of newly acquired 2D seismic data over the Dharoor Block in Puntland (Somalia). Several large prospects have been identified. Africa Oil and its joint venture partners are in discussion regarding drilling plans for 2010-2011 and continue to seek drilling contractors willing to operate in Puntland (Somalia) on commercially acceptable terms. The Company holds a 65% working interest in this project.

Additional drilling activity in the Kenya Blocks and the Ethiopian Blocks will await completion of seismic acquisition, processing, and interpretation.

Exploration Drilling

In Block 9, Kenya, the CNOOC-operated Bogal-1-1 exploration well was spud on October 28, 2009. The well has reached a total depth of 5,085 meters. Gas shows and petrophysical analysis of wireline logs indicate multiple gas pay zones totaling approximately 91 meters in Lower Cretaceous sandstones. Seven inch casing has been set and testing equipment is currently being mobilized from China. Test results are expected to be available during the second quarter of 2010. The Company holds a 20% working interest in this Block.

Block 9 covers an area of 27,778 square kilometers in the centre of the Anza Basin. The Anza Basin is a NW-SE trending rift basin along trend with the prolific Mesozoic play of southern Sudan. The basin is over 580 kilometers long and 150 kilometers wide with a potential prospective area in excess of 50,000 square kilometers. The basin is filled in places with more than 6,000 meters of Mesozoic and Cenozoic sediments and locally by Plio-Pleistocene basalts. Bouger and residual gravity anomalies have highlighted several sub-basins separated by intra-basin highs. Historic wells drilled in the block have proven the existence of natural gas and possibly oil.

The Company has completed a comprehensive interpretation of newly acquired 2D seismic data over the Dharoor Block in Puntland (Somalia). Several large prospects have been identified. Africa Oil and its joint venture partners have agreed to initially drill one prospect in Dharoor. The well is expected to commence drilling before the end of 2010. The Company holds a 65% working interest in this project.

The Company has completed a re-interpretation of the existing 2D seismic data over the Nugaal Block in Puntland (Somalia). Several large prospects have been identified. Africa Oil and its joint venture partners are in discussion regarding drilling plans for 2010-2011. The Company holds a 65% working interest in this project.

Additional drilling activity in the Kenya Blocks and the Ethiopian Blocks will await completion of seismic acquisition, processing, and interpretation.

Seismic Program

In Ethiopia, in the Adigala Block, the Company completed 500 km of 2D seismic acquisition during the fourth quarter of 2009. The data processing has now been completed and interpretation is underway at the Company's technical office in Calgary. The basin prospectivity, at this early stage, appears excellent with a number of large structural leads having been identified from the seismic data. In addition, earlier completed surface geology and sampling has documented the presence of excellent quality source and reservoir along the basin margin. The Company holds a 50% working interest in this Block.

Seismic operations have been initiated in the Company's Ogaden area of Ethiopia. A base camp is under construction and supplies are being mobilized. Local labor has been hired and survey and line clearing crews are actively working. Seismic recording is planned to start during the second quarter of 2010. The Company's plans are to acquire 500 km of 2D data over previously identified leads in order to mature these leads into drillable prospects. The Company holds a 55% working interest in the Ogaden Blocks.

In Block 10BB, Kenya, the tendering process for 600 km of 2D seismic has been completed and it is anticipated the contract will be awarded shortly. The acquisition program is expected to commence before the end of the second quarter of 2010. The Company has reprocessed all available vintage seismic data sharpening the imaging and the amplitude response for use in detecting direct hydrocarbon indicators. The Company held its initial meeting with the local community leaders in March in order to formally introduce the Company and outline the planned work program for 2010. The Company holds an 80% working interest in this Block.

In Block 10A, Kenya, the Company is reprocessing all available vintage seismic data with the objective of improving the imaging of the data acquired in the late 1980s. New play concepts are being developed based on the reprocessed data in combination with vintage drilling data. The Company intends to acquire 750 km of 2D seismic in the Block following the Block 10BB seismic acquisition program. The Company holds a 55% working interest in this Block.

In the Nugaal Block in Puntland, Somalia, AOC acquired more than 4,000 kilometers of existing good quality 2D data which was recorded in the late 1980's. This has enabled the Company to work up an inventory of drilling prospects from which the first exploration well locations will be selected.

During 2008, in the Dharoor Block of Puntland, Somalia, the acquisition of 782 kilometers of good quality 2D seismic (comprised of 15 grid lines) was completed. The Company has combined 555 kilometers of previously acquired data into the seismic database and is currently being mapped to finalize exploration well locations.

The Company is currently planning to commence drilling of one exploration well in the Dharoor Block before the end of 2010.

Exploration Drilling

In Block 9, Kenya, the CNOOC-operated Bogal-1-1 exploration well was spud on October 28, 2009. The well is currently at a depth of approximately 5,000 meters of the originally planned total depth of approximately 5,500 meters. A comprehensive set of wireline logs has been run to assess the hydrocarbon potential of numerous Cretaceous age sandstones encountered to date. Evaluation of these logs is ongoing. The Company holds a 20% working interest in this Block.

Block 9 covers an area of 27,778 square kilometers in the centre of the Anza Basin. The Anza Basin is a NW-SE trending rift basin along trend with the prolific Mesozoic play of southern Sudan. The basin is over 580 kilometers long and 150 kilometers wide with a potential prospective area in excess of 50,000 square kilometers. The basin is filled in places with more than 6,000 meters of Mesozoic and Cenozoic sediments and locally by Plio-Pleistocene basalts. Bouger and residual gravity anomalies have highlighted several sub-basins separated by intra-basin highs. Historic wells drilled in the block have proven the existence of natural gas and possibly oil.

The Company has completed a comprehensive interpretation of newly acquired 2D seismic data over the Dharoor Block in Puntland (Somalia). Several large prospects have been identified. Africa Oil and its joint
venture partners have agreed to initially drill one prospect in Dharoor. The well is expected to commence drilling before the end of 2010. The Company holds a 65% working interest in this project.

The Company has completed a re-interpretation of the existing 2D seismic data over the Nugaal Block in Puntland (Somalia). Several large prospects have been identified. Africa Oil and its joint venture partners are in discussion regarding drilling plans for 2010-2011. The Company holds a 65% working interest in this project.

Additional drilling activity in the Kenya Blocks and the Ethiopian Blocks will await completion of seismic acquisition, processing, and interpretation.

Seismic Program

In Ethiopia, in the Adigala Block, the Company completed 500 km of 2D seismic acquisition during the fourth quarter of 2009. The data processing has now been completed and interpretation is underway at the Company's technical office in Calgary. The basin prospectivity, at this early stage, appears excellent with a number of large structural leads having been identified from the seismic data. In addition, earlier completed surface geology and sampling has documented the presence of excellent quality source and reservoir along the basin margin. The Company holds a 50% working interest in this Block.

Seismic operations have been initiated in the Company's Ogaden area of Ethiopia. A base camp is under construction and supplies are being mobilized. Local labor has been hired and survey and line clearing crews are actively working. Seismic recording is planned to start during the second quarter of 2010. The Company's plans are to acquire 500 km of 2D data over previously identified leads in order to mature these leads into drillable prospects. The Company holds a 55% working interest in the Ogaden Blocks.

In Block 10BB, Kenya, the tendering process for 600 km of 2D seismic has been completed and it is anticipated the contract will be awarded shortly. The acquisition program is expected to commence before the end of the second quarter of 2010. The Company has reprocessed all available vintage seismic data sharpening the imaging and the amplitude response for use in detecting direct hydrocarbon indicators. The Company held its initial meeting with the local community leaders in March in order to formally introduce the Company and outline the planned work program for 2010. The Company holds a 80% working interest in this Block.

In Block 10A, Kenya, the Company is reprocessing all available vintage seismic data with the objective of improving the imaging of the data acquired in the late 1980s. New play concepts are being developed based on the reprocessed data in combination with vintage drilling data. The Company intends to acquire 750 km of 2D seismic in the Block following the Block 10BB seismic acquisition program. The Company holds a 55% working interest in this Block.

In the Nugaal Block in Puntland, Somalia, AOC acquired more than 4,000 kilometers of existing good quality 2D data which was recorded in the late 1980's. This has enabled the Company to work up an inventory of drilling prospects from which the first exploration well locations will be selected.

During 2008, in the Dharoor Block of Puntland, Somalia, the acquisition of 782 kilometers of good quality 2D seismic (comprised of 15 grid lines) was completed. The Company has combined 555 kilometers of previously acquired data into the seismic database and is currently being mapped to finalize exploration well locations.

The Company is currently planning to commence drilling of one exploration well in the Dharoor Block before the end of 2010.

Exploration Drilling

In Block 9, Kenya, the CNOOC-operated Bogal-1 oil exploration well was spud on October 28, 2009. The well is expected to reach total depth of 5,500 meters within approximately 6 months. Block 9 covers an area of 27,778 square kilometers in the centre of the Anza Basin. The Anza Basin is a NW-SE trending rift basin along trend with the prolific Mesozoic play of southern Sudan. The basin is over 580 kilometers long and 150 kilometers wide with a potential prospective area in excess of 50,000 square kilometers. The basin is filled in places with more than 6,000 meters of Mesozoic and Cenozoic sediments and locally by Plio-Pleistocene basalts. Bouger and residual gravity anomalies have highlighted several sub-basins separated by intra-basin highs. Historic wells drilled in the block have proven the existence of natural gas and possibly oil.

Additional drilling activity in the Kenya Blocks and the Ethiopian Blocks will await completion of seismic acquisition, processing, and interpretation.

Seismic Program

In Ethiopia, in the Adigala Block, 500 kilometres of 2D seismic has been acquired. Processing and interpretation of the Adigala seismic is ongoing.

Upon completion of the seismic acquisition in Adigala, the Company is planning to commence seismic acquisition in the Ogaden region of Ethiopia. In Blocks 7/8, AOC plans to acquire approximately 150 kilometres of 2D seismic data. In Blocks 2/6, the Company plans to acquire approximately 350 kilometres.

In Block 10A, Kenya, the Company plans to acquire approximately 750 kilometres of 2D seismic data during 2010. In Block 10BB, Kenya, the Company plans to acquire approximately 600 kilometres of 2D seismic data during 2010. Seismic data related to Block 9 was previously acquired and has led to identification of various leads and prospects.

In the Nogal Block in Puntland, Somalia, AOC acquired more than 4,000 kilometres of existing good quality 2D data which was recorded in the late 1980's. This has enabled the Company to work up an inventory of drilling prospects from which the first exploration well locations will be selected.

During 2008, in the Dharoor Block of Puntland, Somalia, the acquisition of 782 kilometres of good quality 2D seismic (comprised of 15 grid lines) was completed. The Company has combined 555 kilometres of previously acquired data into the seismic database and is currently being mapped to finalize exploration well locations.

Seismic Program

In Ethiopia, in the Adigala Block, AOC plans to acquire approximately 500 kilometres of 2D seismic. The seismic crew and equipment has mobilized and acquisition commenced inmid-August, 2009. Following completion of the seismic acquisition in Adigala, the seismic crew will move to Blocks 7/8, where AOC plans to acquire approximately 200 kilometres of 2D seismic data. In Blocks 2/6, the Company plans to acquire 300 kilometres with plans to commence after the completion of Blocks 7/8.

In Kenya, in Block 10A, the Company plans to acquire approximately 750 kilometres of 2D seismic data which is expected to commence in Q2 2010. Subsequent to the 10A seismic acquisition, approximately 500 kilometres of 2D seismic is planned for the newly acquired Turkana 10BB Block. Seismic data related to Block 9 was previously acquired and has led to identification of various leads and prospects.

In the Nogal Block in Puntland, Somalia, AOC acquired more than 4,000 kilometres of existing good quality 2D data which was recorded in the late 1980's. This has enabled the Company to work up an inventory of drilling prospects from which the first exploration well locations will be selected.

During 2008, in the Dharoor Block of Puntland, Somalia, the acquisition of 782 kilometres of good quality 2D seismic (comprised of 15 grid lines) was completed. The Company has combined 555 kilometres of previously acquired data into the seismic database and is currently being mapped to finalize exploration well locations.

Exploration Drilling

The Company has assigned a full time Drilling Manager to commence efforts on the procurement and mobilization of a drill rig for the proposed Somalia exploration drilling campaign.

In the Kenyan non-operated Block 9, the operator has plans to spud a well during Q4 2009. Additional drilling activity in the Kenya Blocks and the Ethiopian Blocks will await completion of seismic acquisition, processing, and interpretation.

Seismic Program

In Somalia, in the Nogal Block, AOC has acquired all of the more than 4,000 kilometres of existing good quality 2D data which was recorded in the late 1980's. This has enabled the Company to work up an inventory of drilling prospects from which the first two well locations will be selected.

At the Dharoor Block, the acquisition of 2D seismic commenced on July 9, 2008. A total of 782 kilometers of good quality data has been acquired, comprised of 15 grid lines. The Company has combined 555 kilometers of previously acquired data into the seismic database.

In Ethiopia, in Blocks 7/8, AOC plans to acquire approximately 200 kilometres of 2D seismic data. It is anticipated that during Q2 2009, the seismic crew and equipment will mobilize. In Blocks 2/6, the Company plans to acquire 300 kilometres with plans to commence after the completion of Blocks 7/8. Finally, in the Adigala Block, AOC is expected to acquire approximately 500 kilometres of 2D seismic beginning in late Q2 2009.

In Kenya, in Block 10A, the Company plans to acquire 750 kilometres of 2D seismic data which is expected to commence in Q4 2009. Seismic data related to Block 9 was previously acquired and has led to identification of various leads and prospects.

Exploration Drilling

In Somalia, AOC has identified numerous potentially large prospects in both the Dharoor and Nogal Blocks on seismic and will select future drilling locations in late Q4 2009. In addition, the Company will start its efforts to procure and mobilize a drilling rig.

In the Kenyan non-operated Block 9, the operator has plans to spud a well during Q4 2009.

Additional drilling activity in Kenya Block 10A and the Ethiopian Blocks will await completion of seismic acquisition, processing, and interpretation.