2009 Second Quarter Report

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.