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Africa Oil Kenya operations update

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Oilfield Technology,

Africa Oil Corp. has announced that the Etom-2 well in Block 13T, Northern Kenya, has encountered 102 m of net oil pay in two columns. The objective of the well was to explore the north flank of the Etom structure in an untested fault block identified by recent 3D seismic. Oil samples, sidewall cores and wire line logging all indicate the presence of high API oil in the highest quality reservoir encountered in the South Lokichar Basin to date. Additional prospectivity identified on the 3D seismic in the Etom Field area and in the northern portion of the basin, including the Erut and Elim prospects, will now be considered.

Discovering this thick interval of high quality oil reservoirs further underpins the development options and resource base. The result follows careful evaluation of 3D seismic data which was shot after the Etom-1 well and demonstrates how the partnership has improved its understanding of the South Lokichar Basin. This result also suggests significant potential in this underexplored part of the block as it is the most northerly well drilled in South Lokichar and is located close to the axis of the basin away from the basin-bounding fault. Accordingly, Tullow Oil plc and Africa Oil will review the potential of the greater Etom area and neighbouring prospects to decide on the forward program.

The PR Marriott Rig-46 drilled the Etom-2 well to a final depth of 1655 m and will now move to Block 12A where it will spud the Cheptuket-1 well around year end, the first well to be drilled in the Kerio Valley Basin.

In Block 10BB, the partnership has completed the Ngamia Extended Well Test production phase with approximately 38 000 bbls of oil produced. Five completed zones of the Ngamia-8 production well were tested individually at a cumulative rate of 2400 bpd and all except the lowest zone produced without artificial lift. Communication between the producer well and an observation well, at a distance of approximately 500 m, was also demonstrated.

Africa Oil CEO Keith Hill commented: “This discovery confirms a new potential exploration fairway in the northern portion of the Lokichar Basin. This result will greatly aid us in adding critical resources for the basin development as well as enhancing the recently announced farm out deal with Maersk Oil.”

Africa Oil holds a 50% interest in Blocks 13T and 10BB with equal partner and operator Tullow Oil Plc. Upon closing of the previously announced farm-out agreement (see news release dated 9 November 2015), Africa Oil will have a 25% interest in Blocks 13T and 10BB.

Edited from press release by

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