- The Company signed a Farmout Agreement and Joint Venture Agreement with Agriterra Ltd. (formerly White Nile Ltd.) to acquire an 80% participating interest and operatorship of the South Omo Block in Ethiopia. The block encompasses 29,465 km2 and is within the Tertiary age East African Rift, just north of Lake Turkana, Kenya and within the same petroleum system as the Company's Kenya Block 10BB and Tullow's Uganda discoveries. Ethiopian Government approval of the farmout was obtained during August 2010.
- During August 2010, the Kenyan Government approved the assignment of a 100% interest in Blocks 12A and 13T in Kenya. The new contract areas are adjacent to the Company's Block 10BB. Existing gravity data on Blocks 12A and 13T suggests that the proven Lokichar basin and other prospective sub-basins and known strong leads in Block 10BB may extend onto these new blocks. These blocks, which comprise an area of over 23,800 km2, brings the total gross acreage that Africa Oil has signed contracts on to almost 250,000 km2.
First Quarter 2010 Highlights
- CNOOC Africa's‐operated Bogal‐1‐1 well in Block 9, Kenya reached a total depth of 5,085 metres in early May, 2010. Gas shows and petrophysical analysis of wireline logs indicate multiple gas pay zones totaling approximately 91 metres in Lowe Cretaceous sandstones. Seven inch casing has been set and testing equipment is currently being mobilized from China. Test results are expected to be available in the second quarter, 2010. Following evaluation of the test results, the Joint Venture partners will meet to discuss the plan going forward for Block 9 including possible appraisal work, further exploration, as well as reviewing marketing scenarios to best commercialize gas in East Africa. The Company holds a 20% working interest in this Block.
- A Letter of Intent to award a contract with the Bureau of Geophysical Prospecting was signed to acquire 1350 km of 2D seismic o Block 10BB and Block 10A in Kenya. Drilling in these blocks is expected to take place in 2011. The Company holds an 80% working interest in Block 10BB and a 55% working interest in Block 10A.
2009 Annual Report
The year 2009 was one of considerable achievement for Africa Oil. A year of seizing exciting opportunities -- a year of expansion and diversification. Our goal is to build Africa Oil into a leading oil and gas explorer in East Africa. We've long recognized the enormous potential of this underexplored region. What little exploration has taken place over the past several years has yielded major new world class oil discoveries -- and we want to be part of that.
As a member of the Lundin Group of companies we've had early access to some of the best exploration acreage in the East African Rift Trend located adjacent to the big new discoveries and on trend with all the major petroleum systems in the region. We were able to obtain a portfolio of over 200,000 square kilometers (gross) of land before the major rush occurred into East Africa. To date we've successfully completed three leveraged farmout transactions and are pursuing additional leveraged farmouts given the significant working interests we hold in each of our operated blocks.
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Third Quarter 2009
- 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. The Company holds a 20% working interest in the Block (subject to the completion of the Lion farmout discussed below).
- 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.
Second Quarter 2009
To our shareholders,
Africa Oil Corp. (the "Company") completed the acquisition of a large portfolio of East African oil exploration projects from Lundin Petroleum AB. The projects are located within a vastly underexplored region of the highly prospective East African rift basin petroleum system. The projects acquired include an 85% working interest in Blocks 2, 6, 7 and 8 and a 50% working interest in the Adigala Block in Ethiopia plus a 100% interest in Block 10A and a 30% interest in Block 9 in Kenya. Africa Oil has assumed operatorship of these projects, excluding Block 9 in Kenya.
During the quarter, the Company raised CAD$35.5 million by way of a private placement of 37.4 million subscription receipts at $0.95 per unit. Each subscription receipt entitled the holder to receive one unit of the Company without further payment upon completion of the acquisition of the East African properties from Lundin Petroleum AB. One unit comprised one common share plus one share purchase warrant exercisable at CAD $1.50 per share for a period of three years. In the event that Africa Oil trades at or above CAD $2.00 for a period of 20 consecutive days, a forced exercise provision will come into effect.
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First Quarter 2009
To our shareholders,
Africa Oil Corp. ("Africa Oil" or the "Company") recently completed the acquisition of a large portfolio of East African oil exploration projects from Lundin Petroleum AB ("Lundin Petroleum"). The projects are located within a vastly underexplored region of the rich East African rift basin petroleum system. The projects acquired include an 85% working interest in Blocks 2, 6, 7 and 8 and a 50% working interest in the Adigala Block in Ethiopia plus a 100% interest in Block 10A and a 30% interest in Block 9 in Kenya. Africa Oil has assumed operatorship of these projects, excluding Block 9 in Kenya.
The new acreage acquired is complementary to Africa Oil's existing holdings in what is considered a truly world-class exploration play fairway. The Company's total land package in this prolific region is in excess of 200,000 square kilometers - an area roughly the size of Great Britain.
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2008 Annual Report
To our shareholders,
Africa Oil has secured a major acreage position within the prolific petroleum systems of East Africa. Located in Somalia, Kenya and Ethiopia, the projects lie within a vastly underexplored tract of the petroleum-rich East African rift system. The projects include an 85% working interest in Blocks 2, 6, 7 and 8 and a 50% working interest in the Adigala Block in Ethiopia, a 100% interest in Block 10A and a 30% interest in Block 9 in Kenya as well as an 80% interest in the Dharoor and Nogal Blocks in Somalia. The Company's total land package in this prolific region is in excess of 200,000 square kilometers -- an area roughly the size of Great Britain. Africa Oil is the operator of all of these projects except Block 9 in Kenya.
The East African Rift system contains some of the few remaining great rift basins yet to be explored. New discoveries have been announced on all sides of Africa Oil's virtually unexplored land position including the major Heritage/Tullow Albert Graben oil discovery in neighbouring Uganda. Similar to the Albert Graben play model, Africa Oil's concessions have older wells, a legacy database, and host numerous oil seeps indicating an active petroleum system. Good quality existing seismic data show robust leads and prospects throughout Africa Oil's project areas.
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Third Quarter 2008
To our Shareholders,
Africa Oil Corp. holds an 80% interest in two large oil exploration licenses encompassing the Dharoor and Nogal Valleys in the state of Puntland in northern Somalia. The concessions encompass two highly prospective hydrocarbon basins and cover an area of 81,000 square kilometres or more than 20 million acres. Both blocks are considered world-class exploration plays with petroleum systems geologically similar to and formerly contiguous with those in the prolific oil producing Republic of Yemen.
Subsequent to quarter end, the Company fulfilled its obligation of sole funding in the Dharoor Valley and has earned its 80% working interest.
Dharoor and Nogal Oil Exploration Projects, Puntland
Seismic recording in the Dharoor Valley of Puntland, Somalia is continuing. The Company had acquired approximately 425 kilometres of 2D vibroseis data as of September 30, 2008. To date, the Company has acquired approximately 740 kilometres. The Company is reviewing the scope of the seismic program and anticipates completing the acquisition by the end of 2008.
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Second Quarter 2008
To our Shareholders,
Africa Oil Corp. (the "Company") holds an 80% interest in two large oil exploration licenses encompassing the Dharoor and Nogal Valleys in the state of Puntland in northern Somalia. The concessions encompass two highly prospective hydrocarbon basins and cover an area of 81,000 square kilometres or more than 20 million acres. Both blocks are considered world-class exploration plays with petroleum systems geologically similar to and formerly contiguous with those in the prolific oil producing Republic of Yemen.
Dharoor and Nogal Oil Exploration Projects, Puntland
Seismic recording in the Dharoor Valley of Puntland, Somalia commenced on July 9, 2008. The Company plans to acquire up to 2,600 kilometres of 2D vibroseis data on the Dharoor Block before drilling 2 wells in each of its two Puntland concessions. To date approximately 300 kilometres has been acquired and the daily production rate is continuing to increase.
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First Quarter 2008
To our Shareholders,
Africa Oil Corp. holds an 80% interest in two large oil exploration licenses encompassing the Dharoor and Nogal Valleys in the state of Puntland in northern Somalia. Both blocks are considered world-class exploration plays with petroleum systems geologically similar to and formerly contiguous with those in the prolific oil producing Republic of Yemen.
Dharoor and Nogal Oil Exploration Projects, Puntland
A comprehensive seismic acquisition program is currently underway on the Dharoor Block. Previous seismic coverage on the Block was insufficient to define a drillable prospect and, therefore, the Company designed a survey of approximately 2,600 kilometres of 2D data to cover the prospective areas of the concession. IMC/Tesla were the successful bidders on the project. Their crew and equipment was mobilized to the project area and seismic recording will begin in mid-June.
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2007 Annual Report
To our Shareholders,
Africa Oil Corp. holds an 80% interest in two large oil exploration licenses encompassing the Dharoor and Nogal Valleys in the state of Puntland in northern Somalia. Both blocks are considered world-class exploration plays with petroleum systems geologically similar to and formerly contiguous with those in the prolific oil producing Republic of Yemen. During the year, the Company made excellent progress advancing its exploration efforts on these two highly prospective concessions.
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