An independent assessment of the Company's Contingent Resources in the South Lokichar Basin located in Blocks 10BB and 13T in Kenya was completed by DeGolyer and MacNaughton Canada Limited ("DMCL"), with effective date December 31, 2015.
The estimated gross 2C unrisked resources in the South Lokichar Basin, Kenya have increased by 150 million barrels (or 24%) to 766 million barrels of oil (Development Pending: 754 million barrels and Development Unclarified: 12 million barrels).
Summary of South Lokichar Basin Unrisked 2C Oil Contingent Resources as of December 31, 20151 | |||
Unrisked GROSS 2C Estimate Millions of barrels ("mmbo") |
AOC Working Interest (%) |
Unrisked NET 2C Estimate (mmbo) |
|
Total Development Pending | 753.7 | 50% | 376.9 |
Total Development Unclarified | 12.2 | 50% | 6.1 |
Note:
1 This summation of resources has been prepared for convenience by the Company and not by DMCL.
Contingent resources South Lokichar Basin: blocks 10BB and 13T (Dec 31, 2015)
For the independent assessment of contingent resources for Blocks 10BB and 13T (effective date December 31, 2015), see May 10, 2016 news release: Africa Oil Announces Significant Increase 2C Oil Resources
Summary of South Lokichar Basin Unrisked 2C Oil Contingent Resources as of December 31, 2015 3 | |||
Field | Unrisked GROSS 2C Estimate Millions of barrels (“mmbo”) 2 |
AOC Working Interest (%) 1 |
Unrisked NET 2C Estimate (mmbo) |
Development Pending | |||
Ngamia | 296.7 | 50% | 148.3 |
Amosing | 151.1 | 50% | 75.5 |
Ekales | 104.5 | 50% | 52.3 |
Etom | 96.9 | 50% | 48.4 |
Twiga | 86.7 | 50% | 43.3 |
Agete | 17.9 | 50% | 8.9 |
TOTAL | 753.7 | 50% | 376.9 |
Development Unclarified | |||
Etuko | 11.6 | 50% | 5.8 |
Ewoi | 0.6 | 50% | 0.3 |
TOTAL | 12.2 | 50% | 6.1 |
Notes:
The effective date of this resource evaluation is December 31, 2015. Subsequent to this date, AOC completed a farmout transaction with Maersk Olie og Gas A/S (“Maersk”), whereby Maersk acquired 50% of Africa Oil’s interest in Blocks 10BB and 13T, amongst others. Accordingly, the net contingent resources described below do not represent AOC’s current working interest of 25% in these blocks nor its actual Net Entitlement volumes under the terms of the Production Sharing Contracts (“PSCs”) that governs the asset, which would be lower.
The independent assessment of the Company’s Contingent Resources in the South Lokichar Basin located in Blocks 10BB and 13T in Kenya has been completed by DMCL in accordance with the standards established by the Canadian Securities Administrators in National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities with an effective date of December 31, 2015.
New disclosure rules, implemented to NI51-101 to improve quality of disclosure of resources other than reserves, require that an assessment of project maturity and chance of development be included to determine associated risked estimates of Contingent Resources:
Summary of South Lokichar Basin Risked 2C Oil Contingent Resources as of December 31, 2015 |
|||||
Field | Unrisked GROSS 2C Estimate Millions of barrels (“mmbo”) |
AOC Working Interest (%) |
Chance of Commerciality (%) 1 |
Risked NET 2C Estimate (mmbo) |
NI 51-101 Resource Category |
Ngamia | 296.7 | 50% | 86% | 127.6 | Development Pending |
Amosing | 151.1 | 50% | 86% | 65.0 | Development Pending |
Ekales | 104.5 | 50% | 86% | 44.9 | Development Pending |
Etom | 96.9 | 50% | 86% | 41.6 | Development Pending |
Twiga | 86.7 | 50% | 86% | 37.3 | Development Pending |
Agete | 17.9 | 50% | 86% | 7.7 | Development Pending |
TOTAL (Development Pending) | 753.7 | 324.1 | |||
Etuko | 11.6 | 50% | 50% | 2.9 | Development Unclarified |
Ewoi | 0.6 | 50% | 50% | 0.1 | Development Unclarified |
TOTAL (Development Unclarified) | 12.2 | 3.0 |
Notes:
Summary of South Lokichar Basin NET Risked 2C Oil Contingent Resources (Development Pending) Net Present Value as of December 31, 2015 (US$MM) 1,2,3,4 |
||||
0% | 5% | 10% | 15% | 20% |
8,266 | 4,026 | 2,069 | 1,083 | 551 |
Notes:
Summary of South Lokichar Basin Risked and Unrisked Contingent Oil Resources as of December 31, 2015 1 | |||
GROSS Unrisked Contingent Resources (mmbo) |
GROSS Risked Contingent Resources (mmbo) |
NET Risked Contingent Resources (mmbo) |
|
Low (1C) Estimate | 205 | 176 | 88 |
Best (2C) Estimate | 754 | 648 | 324 |
High (3C) Estimate | 1,630 | 1,402 | 701 |
Notes: