Africa Oil (V.AOI) announces major oil discovery in Kenya

Stockhouse
Friday, November 22, 2013

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Africa Oil Corp. (TSX: V.AOI, Stock Forum) said that the Agete-1 exploration well in Block 13T, onshore Northern Kenya, has discovered and sampled moveable oil with an estimated 100 metres of net oil pay in good quality sandstone reservoirs.

The Agete-1 wildcat well is part of a major exploration campaign and has made the fifth consecutive oil discovery in the first of a chain of multiple rift basins across Africa Oil's acreage in the region.

According to the Africa Oil press release, this discovery de-risks several follow-on prospects located to the north and on trend with the Twiga South, Ekales, and Ngamia oil discoveries and adds to the significant resource base already discovered.

The Sakson PR5 rig drilled Agete-1 to a total depth of 1,930 metres. Following completion of logging operations the well will be suspended for future flow testing which will confirm the net pay count.

The rig will then move to drill the Ewoi-1 wildcat in the east of this basin, targeting a rift flank prospect similar to the recent Etuko oil discovery.

Africa Oil has a 50% interest in the discovery with operator Tullow Oil plc holding the remaining 50% interest.

Elsewhere in Kenya, exploration drilling activities continue to accelerate with the Amosing-1 well in Block 10BB, expected to commence drilling before the end of November with the Weatherford 804 rig.

The Etuko-1 well test in Block 10BB is also scheduled to commence this month with the PR Marriott 46 rig which recently arrived in country and the Ekales-1 well test is scheduled to commence in early December with the recently mobilized SMP-5 completion unit.

The Africa Oil operated Bahasi-1 well in the Block 9 is currently drilling as planned with results expected by the end of December.

An additional two wells are currently drilling in Ethiopia, the Tutule-1 well in the South Omo block, and the El Kuran-3 well in Block 8, with results also expected before the end of the year.

Africa Oil is a Canadian oil and gas company with assets in Kenya and Ethiopia as well as Puntland (Somalia) through its 45% equity interest in Horn Petroleum Corporation.

On Friday morning, Africa Oil was up 5.8% and was trading at $10.26 a share. The company had a market cap of $3.2 billion, based on 309.5 million shares outstanding.

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