Corporate Presentation March, A Lundin Group Company

Transcription

1 An Oil Pioneer of Onshore East Africa Corporate Presentation March, 2014 A Lundin Group Company

2 A FRONTIER EXPLORATION SUCCESS STORY Size Does Matter Secured exploration area the size of the entire North Sea First Mover Advantage Brought in strong partners to fund and collaborate on exploration program (Tullow, Marathon) Identified 11 new rift basins, most of which have multi-billion barrel potential High intensity, high impact exploration program adds value Extensive seismic programs unlock potential of all basins Drilled 7 consecutive discoveries in South Lokichar Basin Over 600 MMBO contingent resources discovered to date as estimated by Operator* The best is yet to come Over 100 leads and prospects identified Six new basin opening wells to be drilled in next 12 months Seven rigs currently operating, with at least six rigs full time for foreseeable future *Tullow is LSE listed and therefore does not report resources in accordance with NI Please refer to Africa Oil s press release dated September 3, 2013 for details of the prospective and contingent resources by prospect and lead, including the geologic chance of success. 2

3 THE NEXT NORTH SEA? Lokichar Basin Confirmed as major oil province 11 more basins and 100+ prospects to go Tertiary/Cretaceous Rifts North Sea Reserves: Unrisked Gross Best Estimate of 60+ BBO Prospective Resources 23 BBO 1 Exploration Wells: Exploration Wells: 2,408 Tertiary: 11, Cretaceous: km 100 km 3 1 Please refer to Prospective and Contingent Resources slide detailing specific contingencies relating to the classification of resources and cautionary statements.

4 2014 PROGRAM GOALS Continue to add resources and de-risk South Lokichar Basin Drill out remaining i prospect inventory Appraise existing and future discoveries with aid of new 3D seismic Update third party resource report in early 2 nd quarter to include new discoveries at Agete, Ekales, Amosing and Ewoi include appraisal drilling and test results from 1 st quarter Initiate Extended Well Test (EWT) at Twiga field to confirm reservoir properties Open up at least one new basin Drilling to commence on three of the six new basin targets in the first half of 2014 Seismic programs planned to be completed in at least four future target basins Move forward aggressively on development project Working closely with Kenyan government on infrastructure projects with focus on pipeline Joined consortium to develop plans for joint Kenya Uganda export pipeline project Initiated Environmental and Social Impact Assessment (ESIA) studies and Front End Engineering Design (FEED) studies on pipeline and facilities projects Goal is to have project sanction by end of 2015 / early

5 STEP UP COMMUNITY ENGAGEMENT Local Employment and Contracts Ensure a transparent process for awarding local contracts and hiring local staff community involvement critical Capacity Building Opening new local vocational training center Build on needs assessment study to match current local training capabilities, suggested enhancement and employment requirements Establish an entrepreneurial advisory panel to assist locals to create new businesses required to support oil development projects Explore community based companies based on conservancy model Better Communication Opened 3 new offices in Turkana to more effectively communicate ongoing operations, address grievances and manage expectations Better engage groups on issues such as land and water use, environmental issues, archeology sensitivity and drought relief 5

6 IMPROVE DRILLING PERFORMANCE Tullow Kenya Drilling Performance (Days/1000m excludes testing) Smectite clays cause hole problems with water based drilling muds, controlled with 60 Basin opening well - sidetracked improved mud chemistry Use of synthetic-based muds from early 2014 will deliver further performance improvement (Twiga-2 is the first well) Improved contracts deliver 25% cost reduction Reduced rig move durations Testing off-line with more cost efficient test rig South Lokichar basin wells now running at $15mm to $20mm untested New basin opening wells will be $25mm to $30mm untested due to additional rig move, civil engineering ee g & logistics costss Smectite in oil Smectite in fresh water in 5 minutes! 6

7 2014 Exploration Tullow-Operated: Kiboko Etom Shimela Aze Dyepa Gardim El Kuran (off map) Exploration: Amosing (Discovery) Ewoi (Discovery) Emong (Ngamia West) Ekunyuk Etom Ekosowan Dyepa Aze Kiboko Shimela Gardim Emong Ewoi (discovery) Sala AOC-Operated Exploration: Sala INSET MAP Amosing (discovery) Ekunyuk Ekosowan Bahasi Bogal New Age-Operated Exploration: El Kuran-3 (testing) 50 km 7

8 Lokichar Basin Exploration & Appraisal through 2014 Etom North Best-Estimate Gross Resources: Prospective : 234 MMBO Etom Complex Spud 1H, 2014 Best-Estimate Gross Resources: Prospective : 467 MMBO Agete 1 (2013): New Discovery 100m net pay, Sampled oil Pre-drill Best-Estimate Gross Resources: Prospective : 276 MMBO Twiga South-1 (2012), TD: 3227m >70m net pay: 2,812 bopd constrained Best-Estimate Gross Resources: Contingent (2C) : 87 MMBO Prospective : 132 MMBO Ekales-1 (2013) TD:2,554m Pre-Drill Best-Estimate Gross Resources: Prospective : 234 MMBO Ngamia-1 (2012), TD: 2340m >200m net pay: 3,200 BOPD constrained Etom Best-Estimate Gross Resources: Contingent (2C) : 180 MMBO Prospective : 242 MMBO (includes Emong) Agete Twiga South Ekales Amosing- Spud Q4, Discovery Pre-Drill Best-Estimate Gross Resources: Prospective : 172 MMBO Etom North Ngamia & Emong Ekosowan, Spud Q4, 2014 Best-Estimate Gross Resources: Prospective : 153 MMBO Amosing 13T 10BB 12A Etuko Gross Best Estimate Contingent (2C) Resources to date: 368 MMBO (gross) Competent Persons Report (CPR) CPR pre-dated Agete,Ekales, Amosing & Ewoi Discoveries Loperot Ekosowan Etuko-1 (2013), TD: 3051m ~40m net pay in Auwerwer & U. Lokhone Possible 50m net in Lower Lokhone Best-Estimate Gross Resources: Contingent (2C) : 100 MMBO Ewoi 3D Outline: 550 sqkm Ewoi Spud Q3, 2013, -Discovery Pre-Drill Best-Estimate ti t Gross Resources: Prospective : 317 MMBO Loperot-1 (Shell, 1992), TD: 2950m Prospective net pay included with Ewoi estimated Ekunyuk Ekunyuk Spud Q2, 2014 Best Estimate Gross Resources: Prospective : 203 MMBO 10km Resource estimates are gross best estimates of Prospective resources from a Third Party Independent Resource Assessment, except when noted as Contingent. Please Block 12A refer to Prospective and Contingent Resources slide detailing specific contingencies relating to the classification of resources and cautionary statements. Upcoming Wells: Amosing - Discovery Ewoi - Discovery Emong (Ngamia West) Etom Ekunyuk Ekosowan EtukoTest and Appraisal Twiga Appraisal Ngamia Appraisal Agete Appraisal Seismic: Ngamia-Twiga g 3D (550 sqkm) 8

9 Ekales-Twiga-Agete-Etom Prospect Area Enlarged Map Etom Northwest Best-Estimate Gross Resources 81 MMBO Etom North Best-Estimate Gross Resources 234 MMBO COS: 21-25% Etom East Best-Estimate Gross Resources 42 MMBO COS: 29% COS: 21-25% Etom Complex Best-Estimate Gross Resources 467 MMBO COS: 25-38% Agete-1 Discovery Pre-drill Best-Estimate Gross Resources: 276 MMBO, COS: 54% Twiga South-1 Discovery Best-Estimate Gross Resources: Contingent (2C): 87 MMBO Prospective: 132 MMBO, COS: 64% Ekales-1 Discovery Pre-drill Best-Estimate Gross Resources: 234 MMBO, 56% COS 5 km Resource estimates are gross best estimates of prospective resources from Third Party Independent Resource Assessment except where noted as Contingent. Please refer to Prospective and Contingent Resources slide detailing specific contingencies relating to the classification of resources and cautionary statements. Depth Structure Top Auwerwer Reservoirs COS: Geologic Chance of Success (%) 9

10 The Rift Flank Play - Ewoi Discovery & Ekunyuk Prospect Enlarged Map Large Structural Traps Possible Stratigraphic Component Depth Structure: Top Lokhone o Source Rock 5km Etuko-1 Discovery (2013) Best-Estimate Gross Resources: Contingent (2C) : 100 MMBO Ewoi- Discovery Pre-drill Best-Estimate Gross Resources 317 MMBO (COS: 34%) Loperot-1 Discovery (1992) Best-Estimate Gross Prospective Resources: (Included with Ewoi estimate) Ekunyuk Best-Estimate Gross Resources 203 MMBO (COS: 34%) Resource estimates are gross best estimates of prospective resources from Third Party Independent Resource Assessment except where noted as Contingent. Please refer to Prospective and Contingent Resources slide detailing specific contingencies relating to the classification of resources and cautionary statements. COS: Geologic Chance of Success (%) 10

11 High Quality Auwerwer Reservoir Auwerwer Core Data Twiga Ekales Core Plug Porosity 23.6% & Perm 13.2 Darcies Ekales Ngamia Etuko Permeabili ity md Porosity % Porosity 15% to 30% Permeability 50 md to multi Darcy Waxy sweet crude deg API 11

12 South Lokichar Basin Significant Discovered Resource Upside (Based on most recent CPR report effective July 31, 2013) Appraisal Candidates by end 2014 Gross Contingent Resources* mmbo C 2C 851 Ngamia & Twiga South to be fully appraised by end EWT 3D Seismic i Ngamia Twiga South Etuko Total Excludes Prospective Resource upside & recent Ekales/Agete/Amosing/Ewoi discoveries Appraisal Plans: Multiple appraisal wells planned through to end of 2014 Establishment of Area of Interest (AOI) allows coordinated exploration & appraisal activities 550sq km 3D seismic programme commencing in 2013 Extended well testing to assist in proving of volumes and characterisation of reservoir quality and connectivity 1 This summary chart was prepared by Company management for the convenience of readers. 2 Please refer to the Company s press release dated September 3, 2013 for details of the contingent resources by discovery. 12

13 South Lokichar Basin Building World Class Resource Base Exploration Candidates by end 2014 South Lokichar Basin Best Estimate Gross Contingent Resources, Gross Risked and Unrisked Prospective Resources mmbo 4,000 3,500 3,000 2,500 Drilling program to end 2014 accesses 60% to 70% of South Lokichar Basin prospective resources 2,000 3,301 1,500 1,000 2C resource increase of 557% since C 1,213 Prospective Risked Prospective Unrisked 1 This summary table was prepared by Company management for the convenience of readers. 2 Please refer to the Company s press release dated September 3, 2013 for details of the prospective and contingent resources by prospect and lead, including the geologic chance of success. 3 Risked resources have been calculated and summed by the company after risking prospects and leads individually. Geological Chance of Success ccess(gcos) varies with eachprospector or lead. 4 Net Prospective and Contingent Resources are stated herein in terms of the Company s net working interest in the properties. Due to the very immature nature of these Resources, net estimates have not been computed as net entitlement volumes under the PSAs/PSCs. In this regard the volumes stated herein will exceed the volumes which will arise to AOC under the terms of the PSAs/PSCs. 5 There is no certainty that any portion of the Prospective Resources will be discovered. If discovered, there is not certainty that the discovery will be commercially viable to produce any portion of the resources. 13

14 2014 Exploration Outside of Lokichar- Focus on Opening New Basins Chew Bahir Basin (South Omo Block) New seismic identified large inventory of prospects Prospects supported direct hydrocarbon indicators 2 wells planned Western Shore, Lake Turkana (10BA) Latest seismic confirms large prospect inventory Western Shore Chew Bahir Several interesting prospects drillable onshore 2 wells planned South Kerio Basin (Block 10BB) New seismic identifies Ngamia-style play South Kerio Aze Anza Basin Several prospects & leads 2 wells planned Anza Basin (Block 9) Spud Sala Feb Potential to extend the Sudan play into Kenya 14

15 Chew Bahir Basin (South Omo Block) Chew Bahir Basin Zorit Wemay NESIR Jigra Jigra S. Shimela Best-Estimate Gross Resources 48 MMBO Sila Best-Estimate Gross Resources 241 MMBO East BM Shimela S. 100 km Gardim Best-Estimate Gross Resources 89 MMBO Possible basin-opener Spud first well March 2014 Large prospect inventory DHI s, AVO anomalies visible over some prospects Kesami Best-Estimate Gross Resources 20 MMBO Resource estimates are gross best estimates of prospective resources from Third Party Independent Resource Assessment except where noted as Contingent. Please refer to Prospective and Contingent Resources slide detailing specific contingencies relating to the classification of resources and cautionary statements. Kesami SE Best-Estimate Gross Resources 120 MMBO Shala Sorene Chereba Best-Estimate Gross Resources 166 MMBO Chereba S. Tertiary Marker 3 10km 15

16 Chew Bahir Basin Prospects (South Omo Block) SW Shimela: 48 MMBO Best-Estimate Gross Resources NE NW Jigra: 5 MMBO Best-Estimate Gross Resources Sila: 241 MMBO Best-Estimate Gross Resources SE CB Marker 3 CB Marker 5 CB Marker 3 CB Marker 7 CB Marker 5 CB Marker 7 Line CB-09 Line CB-40 Jigra N Sila: 241 MMBO Best-Estimate Gross Resources Gardim: 89 MMBO Best-Estimate Gross Resources Chereba: 166 MMBO Best-Estimate Gross Resources S Shimela Sila Gardim Kesami Kesami SE CB-11 10km Resource estimates are gross best estimates of prospective resources from Third Party Independent Resource Assessment except where noted as Contingent. Please refer to Prospective and Contingent Resources slide detailing specific contingencies relating to the classification of resources and cautionary statements. Line CB-11 16

17 Newly-Awarded Rift Basin Area PPSA PPSA award follows 3-year Joint Study Extends AOC position in Tertiary Rift Basins Frontier area, no existing seismic data or wells Rift Basin Area 42,519 sq km Completed 37,000 sq km Full Tensor Gradiometry survey Fieldwork confirming nearby source rocks Preparing to acquire 2D Seismic Survey AOI operates (50% WI), Marathon (50%) Newly acquired FTG 50km Source rocks at surface Eocene-Miocene shales & lignites TOC s up to 16% Overmature (Ro>1.5) Jima Tercha Tar reported along shoreline Basins of Interest Volcanic Centers Volcanic Center Eocene-Miocene oil shales TOC s up to 59% Immature (Ro =.33) Gocho Oil slicks identified on landsat Miocene black shales TOC s: 5-7% Early Mature for Oil (Ro =.6-.8) 50km 17

18 Dyepa Prospect, South Kerio Basin (Block 10BB) New prospects from ongoing seismic program S Kerio A South Kerio Estimated prospective resources in the MMBO class, pending CPR audit Dyepa S Kerio G NW 100 km Two possible basin-openers Ngamia-type traps, large number of follow-on on prospects Try to confirm extension of Lokhone source rocks Spud first well mid 2014 Dyepa SE S Kerio D S Kerio C Mrkr 5 Mrkr 3 S Kerio E Lukwa (formerly Mamba) S Kerio F Mrkr 1 Tertiary Marker 3 Time Structure t 0 10km 18

19 Aze Prospect- North Kerio Basin (Block 10BB) Time Structure Lower Pliocene Marker 5km Block 10BA Block 10BB Aze: 343 MMBO Best-Estimate Gross Resources (1) W Aze (1) Resource estimates are gross best estimates of prospective resources from Third Party Independent Resource Assessment except where noted as Contingent. Please refer to Prospective and Contingent Resources slide detailing specific contingencies relating to the classification of resources and cautionary statements. E 25km Aze prospect to spud Q3, 2014 Possible basin-opener (North Kerio) Large 4-way anticlinal closure Infill seismic program underway Several follow-on prospects mapped Pio Mkr 19

20 Lake Turkana Western Shore Prospects (Block 10BA) 1,558 km of new onshore and marine seismic significantly increased prospect inventory Seismic acquisition concentrated along western shore Kiboko Shaba Kifaru Samaki Lake Turkana Large prospects, different play types, drillable from land Uncertain stratigraphy between sub-basins Bright spots seen in new offshore seismic 10 km Spud first well Q3,

21 Lake Turkana Western Shore Prospects (10BA) Line Kiboko Mrkr 5 Mrkr 1 Kiboko Best-Estimate Gross Resources 106 MMBO Western Shore Line Kifaru Samaki (projected) Shaba Best-Estimate Gross Resources 19 MMBO Lake Turkana Line TZ Onshore Marine Kifaru Best-Estimate Gross Resources 333 MMBO Flat Spots Line TZ Plio. Mrkr Samaki (new, from recent seismic) Plio. Volc Resource estimates are gross best estimates of prospective resources from Third Party Independent Resource Assessment except where noted as Contingent. Please refer to Prospective and Contingent Resources slide detailing specific contingencies relating to the classification of resources and cautionary statements. Time Structure Tertiary Marker-1 5 km 21

22 Anza Graben, Block 9: Extension of the Sudan Play Cretaceous Basin on trend with South Sudan with over 6 billion barrels of oil discovered along trend Play concept confirmed at Paipai well Bahasi-1 drilled to 2,900m in Basement (P&A), late trap formation, minor shows. Surface volcanics Sala: Best-Estimate Gross Resources 402 MMBO Sala-1 will drill to 3,400m to test old structure and rift-bounding fault play, Spud Feb. 20, 2014 Ndovu AOC Operates (50% WI), Marathon (50%) SW Sala-1 NE Bahasi-1 P&A Tert. Marker Bogal 1 Discovery: Best-Estimate Gross Resources 1.88 TCFG L. Tertiary L. Cretaceous Basement Resource estimates are gross best estimates of prospective resources from Third Party Independent Resource Assessment except where noted as Contingent. Please refer to Prospective and Contingent Resources slide detailing specific contingencies relating to the classification of resources and cautionary statements. 22

23 Basin Opening Strategy 2013/2014 New Basin De-Risking Schedule Gross Best Estimate Unrisked Prospective Resources New Basin De-Risking Best Estimate Net Unrisked & Risked Prospective Resources 1H 2H Need to switch order of basins being drillled north Lokichar and North Kerio to switch positions mmbo 9,000 8,000 7,000 p 6,000 5,000 4,000 3,000 Net Unrisked Best Estimate Prospective Resources Net Risked Best Estimate Prospective Resources 5,696 8,012 2,000 1, /14 Program Total Prospective Resources 1 This summary table was prepared by Company management for the convenience of readers. 2 Please refer to the Company s press release dated September 3, 2013 for details of the prospective and contingent resources by prospect and lead, including the geologic chance of success. 3 Risked resources have been calculated and summed by the company after risking prospects p and leads individually. Geological Chance of Success (GCOS) varies with each prospect or lead. 4 Net Prospective and Contingent Resources are stated herein in terms of the Company s net working interest in the properties. Due to the very immature nature of these Resources, net estimates have not been computed as net entitlement volumes under the PSAs/PSCs. In this regard the volumes stated herein will exceed the volumes which will arise to AOC under the terms of the PSAs/PSCs. 5 There is no certainty that any portion of the Prospective Resources will be discovered. If discovered, there is not certainty that the discovery will be commercially viable to produce any portion of the resources. 23

24 What you will see by end 2014 (Timing of well results) 1H H 2014 Basin Openers Sala (Anza) Shimela (Chew Bahir #1) Dyepa (S. Kerio #1) Gardim (Chew Bahir #2) Aze (N.Kerio-1) Kiboko (W. Turkana #1) Lokichar Drill Out Amosing Ewoi Emong Ekunyuk Etom Ekosowan Ngamia-2 Agete-2 Lokichar Appraisal Etuko-2 Twiga-2 Twiga-4 Twiga-3 Ngamia-3 Amosing-2 EWT Lokichar Development Gov t Kenya Pipeline tender & Pre-FEED Long-term Development Plan Definition 6 Basin Openers Drill key Lokichar Prospects Appraise Ngamia, Twiga, Agete & Amosing Define development way forward 24

25 World Class Development Project Seven discoveries from seven wells prove prolific light oil South Lokichar basin with significant running room South Lokichar Basin exceeds threshold volumes for development * Kenyan & Ugandan Presidents agree joint export pipeline Concept work on pipeline and offshore loading complete Concluded pipeline cooperation agreement between Kenyan & Ugandan Joint Ventures Pipeline Pre-FEED and ESIA underway Project sanction anticipated by end of 2015 / early 2016 *Tullow public disclosure 25

26 AOI Corporate Summary Funding 2014 Forecast O&G Expenditures (gross): $814MM $450MM equity issuance completed Oct-2013 Funding in place through mid-2015 $43.5MM Marathon farmout carry dedicated to Block 9, Block 12 and Rift Basin Area fully utilized in 2014 Drilling focused 2014 exploration budget: Drilling: 70% Seismic: 6% Drilling Seismic Development Studies Other Development Studies: 15% 2014 Forecast O&G Expenditures (net): $348MM Capital Structure 310.5MM Shares 18.3MM Options Nil warrants Nil debt Drilling 50.7 Seismic Development Studies Other 26

27 Step Up Community Engagement Risk Management and Value Creation Africa Oil is committed to addressing the challenge of sustainability - delivering value to our shareholders, while providing economic and social benefits to impacted communities and minimizing our environmental footprint. To create a working environment such that we cause no harm to people, and where we minimize our impact on the environment. To create a secure and safe working environment for our people and assets To conduct our business in an honest and ethical manner. To enter into dialogue and engagement with key stakeholders, conducted in the spirit of transparency and good faith. To deliver tangible and sustainable benefits that contribute to the social and economic well being of citizens in our host countries. To support the development of financial transparency and good governance mechanisms. To support and protect internationally recognized human rights. 27

28 A History of Value Creation Company 2002 Recent Notes Tanganyika $0.55/share $13.5 million MC $31.50/share $1.9 billion MC Sold to Sinopec 2008 Valkyries $0.45/share $16.00/share Sold to Lundin Petroleum 2006 $4 million MC $750 million MC Africa Oil $0.27/share $1 million MC $9.24/share $2.9 billion MC Lundin Petroleum U $0.41/share $23/share U $101 million MC $6.9 billion MC + Enquest spin off US $1.5 billion MC BlackPearl $0.25/share $2.1 million MC ShaMaran $0.175 (2003) $6.7 million MC $2.18/share $645 million MC $0.46/share $377 million MC Active Active Active Active 12 Year value increase: $128MM => $15 Billion Average share price increase: 39x 28

29 Opportunity Summary Africa Oil has the best onshore acreage position in East Africa, and perhaps the largest upside exploration portfolio in the world The Ngamia, Twiga, Etuko, Ekales, Agete, Amosing and Ewoi discoveries have significantly de-risked the South Lokichar Basin expect very high future success rate The Company has 7 active rigs with 5 in Kenya (4 currently in the Lokichar basin) and 2 in Ethiopia with at least 20 wells planned in 2014 New basin opening wells have chance for high impact growth and step change in share valuation Research coverage from 26 analysts with an average target price of $13.43 per share 29

30 AOI has a Strong Management Team Keith Hill, President and CEO Mr. Hill has over 27 years experience in the oil industry including international new venture management and senior exploration positions at Occidental Petroleum and Shell Oil Company. His education includes a Master of Science degree in Geology and Bachelor of Science degree in Geophysics from Michigan State University as well as an MBA from the University of St. Thomas in Houston. Prior to his involvement with Africa Oil, Mr. Hill was President and CEO of Valkyries where he led the company through rapid growth and ultimately a highly successful $700 million takeover by Lundin Petroleum. In addition, Mr. Hill was one of the founding directors of Tanganyika Oil which was recently the subject of a $2 billion takeover by Sinopec International Petroleum. Ian Gibbs, CFO Ian Gibbs is a Canadian Chartered Accountant and a graduate of the University of Calgary where he obtained a bachelor of commerce degree. He has been a member of Africa Oil s Board of Directors or Executive Management Team since Since 2004, Mr. Gibbs has been the Chief Financial Officer of several TSX Venture and TSX Listed international oil exploration and production companies including Valkyries Petroleum Corp. and Tanganyika Oil Company Ltd. and has been actively involved in the day to day operation of these companies with operations in Russia, Syria, Egypt, Kenya, Ethiopia and Puntland (Somalia). Prior to 2004, Mr. Gibbs spent several years working in Russia and Kazakhstan in the upstream oil and gas industry. As CFO of Tanganyika Oil, in 2008, he played a pivotal role in the $2 billion acquisition by Sinopec International Petroleum. Prior to Tanganyika Oil, Mr. Gibbs was CFO of Valkyries Petroleum which was the subject of an $750 million takeover. Nick Walker, COO Mr. Walker has 28 years of industry experience including 17 years with Talisman Energy Inc. where he served as Executive Vice President of International Operations West as well as country manager positions in the UK and Malaysia/Vietnam. He has extensive international upstream oil and gas experience across Europe, Latin America, Asia and Africa and has led operating businesses in all those areas. He started his career as a petroleum engineer with BP plc. and also worked in senior management positions at Bow Valley Energy Inc. He previously served on the Board of Oil & Gas UK, the trade association representing the UK oil and gas business. His education includes a Bachelor of Science Degree in Mining Engineering from Imperial College in London, a Master of Science Degree in Computing Science from University College in London and an MBA from City University Business School, also in London. JamesPhillips Phillips, VP BusinessDevelopment Before joining Africa Oil, Mr. Phillips was Vice President Exploration Africa and Middle East for Lundin Petroleum AB where he played a pivotal role in securing the majority of Africa Oil s current portfolio. Mr. Phillips is a graduate of the University of California, Berkeley and San Diego State University where he obtained BS and MS degrees, both in Geology. He has over 30 years of experience in the oil industry including senior positions with Shell Oil company and Occidental including heading up Oxy s African exploration ventures. Paul Martinez, VP Exploration Dr. Martinez, most recently Director of International Business Development with Occidental Petroleum Corporation, has over 23 years of domestic US and international experience in oil and gas exploration and development, including projects in the Texas Gulf Coast, Permian Basin, Rockies, Latin America, Africa, Middle East, and Russia. He has held overseas management positions for Oxy in Libya, Oman and Peru. Dr. Martinez holds Master of Science and Doctorate degrees in applied earth sciences from Stanford University and a Bachelor of Science degree in petroleum geology from the University of Texas at Austin. Dr. Martinez is based in Africa Oil s Calgary office and is responsible for all geological and geophysical activities of the Company. Alex Budden, VP External Relations Before joining Africa Oil Alex Budden served as a Diplomat for the British Foreign & Commonwealth Office for 21 years. His international experience has seen him serve in Africa, Asia, the Middle East, Russia, the Balkans and North America. Throughout his career he has focused on international security, conflict, governance, human rights, energy and environment issues and specializes in government and security relations, complex stakeholder management and strategic communications work. 30

31 Cautionary Statements This document has been prepared and issued by and is the sole responsibility of Africa Oil Corp. (the Company ) and its subsidiaries. It comprises the written materials for a presentation ti to investors and/or industry professionals concerning the Company s business activities. iti By attending this presentation ti and/or accepting a copy of this document, you agree to be bound by the following conditions and will be taken to have represented, warranted and undertaken that you have agreed to the following conditions. This presentation may not be copied, published, distributed or transmitted. The document is being supplied to you solely for your information and for use at the Company s presentation to investors and/or industry professionals concerning the Company s business activities. It is not an offer or invitation to subscribe for or purchase any securities and nothing contained herein shall form the basis of any contract or commitment whatsoever This presentation does not constitute or form part of any offer or invitation to whatsoever. sell or issue, or any solicitation of any offer to purchase or subscribe for, any shares in the Company in any jurisdiction nor shall it or any part of it nor the fact of its distribution ib ti form the basis of, or be relied on in connection with, any contract t commitment t or investment t decision i in relation thereto t nor does it constitute t a recommendation regarding the securities of the Company. The information contained in this presentation may not be used for any other purposes. This update contains certain forward looking information that reflect the current views and/ or expectations of management of the Company with respect to its performance, business and future events including statements with respect to financings and the Company s plans for growth and expansion. Such information is subject to a number of risks, uncertainties and assumptions, which may cause actual results to be materially different from those expressed or implied including the risk that the Company is unable to obtain required financing and risks and uncertainties inherent in oil exploration and development activities. Readers are cautioned that the assumptions used in the preparation of such information, such as market prices for oil and gas and chemical products, the Company s ability to explore, develop, produce and transport t crude oil and natural gas to markets and the results of exploration and development drilling and related activities, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking information. The Company assumes no future obligation to update these forward looking information except as required by applicable securities laws. Certain data in this presentation was obtained from various external data sources, and the Company has not verified such data with independent sources. Accordingly, no representation or warranty, express or implied, is made and no reliance should be placed, on the fairness, accuracy, correctness, completeness or reliability of that data, and such hdata involves risks and uncertainties ti and dis subject tto change based on various factors. No reliance may be placed for any purposes whatsoever on the information contained in this presentation or on its completeness. The Company and its members, directors, officers and employees are under no obligation to update or keep current information contained in this presentation, to correct any inaccuracies which may become apparent, or to publicly announce the result of any revision to the statements made herein except where they would be required to do so under applicable law, and any opinions expressed in them are subject to change without notice, whether as a result of new information or future events. No representation or warranty, express or implied, is given by the Company or any of its subsidiaries undertakings or affiliates or directors, officers or any other person as to the fairness, accuracy, correctness, completeness or reliability of the information or opinions i contained in this presentation, ti nor have they independently d verified such information, and any reliance you place thereon will be at your sole risk. Without prejudice to the foregoing, no liability whatsoever (in negligence or otherwise) for any loss howsoever arising, directly or indirectly, from any use of this presentation or its contents or otherwise arising in connection therewith is accepted by any such person in relation to such information. For additional details on the Company, please see the Company s profile at 31

32 Prospective and Contingent Resources There is no certainty that any discovered resources referred to in this presentation will be commercially viable to produce. There is no certainty that any portion of the undiscovered resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the resources. Risks associated with discovering oil: The estimation of prospective resource volumes for high-risk and poorly calibrated basins can be subject to large variation from the introduction of new information. The estimates presented herein are based on all of the information available at the effective date of the resource estimate. New data or information is likely to have a material effect on the resource assessment values. Since the effective date of the resource estimates provided, the Company has continued to actively explore, with multiple seismic crews operational and several exploration wells drilled. There is no certainty that any additional resources will be discovered. Once discovered, there is no certainty that the discovery will be commercially viable to produce any portion of the resources. Given that most of the resources in the portfolio are in leads that require additional data to fully define their potential it is likely that significant changes to the resource estimates will occur with the incorporation of additional data and information. Risk Associated with the Estimates: In the event of a discovery, basic reservoir parameters, such as porosity, net hydrocarbon pay thickness, fluid composition and water saturation, may vary from those assumed by the Company s independent third party resource evaluator affecting the volume of hydrocarbon estimated to be present. Other factors such as the reservoir pressure, density and viscosity of the oil and solution gas/oil ratio will affect the volume of oil that can be recovered. Additional reservoir parameters such as permeability, the presence or absence of water drive and the specific mineralogy of the reservoir rock may affect the efficiency of the recovery process. Recovery of the resources may also be affected by well performance, reliability of production and process facilities, the availability and quality of source water for enhanced recovery processes and availability of fuel gas. There is no certainty that certain mineral interests are not affected by ownership considerations that have not yet come to light. Substantial Capital Requirements: Africa Oil expects to make substantial capital expenditures for exploration, development and production of oil and gas reserves in the future. The Company's ability to access the equity or debt markets may be affected by any prolonged market instability. The inability to access the equity or debt markets for sufficient capital, at acceptable terms and within required time frames, could have a material adverse effect on the Company's financial condition, results of operations and prospects. Ability to Execute Exploration and Development Program: It may not always be possible for Africa Oil to execute its exploration and development strategies in the manner in which the Company considers optimal. Execution of exploration and development strategies is dependent upon the political and security climate in the host countries where the Company operates and agreement amongst the Company joint venture partners. The Company's exploration and development programs in East Africa may involve the need to obtain approvals from relevant authorities who may require conditions to be satisfied or the exercise of discretion by the relevant authorities. It may not be possible for such conditions to be satisfied. Absence of a Formal Development Plan including Required Funding: There is no certainty the Company will prepare and have approved a development plan for any portion of the contingent resources or that the Company will be successful in funding any development should such a plan be prepared. General market conditions, the sufficiency of such a development plan and the outlook regarding oil and gas prices are some factors that will influence the availability of funding or the Company s ability to attract oil and gas industry partners to participate in the project. Access to Infrastructure: Currently there is limited local infrastructure for the production and distribution of oil and gas in the countries in which Africa Oil operates. Export infrastructure to enable other markets to be accessed has not yet been developed and is contingent on numerous factors including, but not limited to, sufficient reserves being discovered to reach a commercial threshold to justify the construction of export pipelines and agreement amongst various government agencies regulating the transportation and sale of oil and gas. Africa Oil is working with its joint venture partners and government authorities to evaluate the commercial potential and technical feasibility of discoveries made to date and potential future discoveries. Additional Risks: Additional risks associated with the estimate of the prospective and contingent resources include risks associated with the oil and gas industry generally (i.e. financing; operational risks in exploration, development and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of estimates and projections related to production; costs and expenses; health, safety, security and environmental risks; and the uncertainty of resource estimates), drilling equipment availability and efficiency, the ability to attract and retain key personnel, the risk of commodity price and foreign exchange rate fluctuations, the uncertainty associated with dealing with governments and obtaining regulatory approvals, and the risk associated with international activities. 32