Africa Oil JV Becomes Operator of Kenyan Project

Africa Oil Corp and its joint venture partner Lion Energy have entered into the First Additional Exploration Phase under the Block 9 Production Sharing Contract Agreement (PSC) in Kenya.

After the withdrawal of two other partners, Africa Oil will now hold a 66.7% working interest in the PSC, with Lion Energy holding the remaining 33.3%. The joint venture was approved as the operator of Block 9 by the Kenyan Government.

The additional exploration phase began on 31 December 2010 and is expected to expire on 31 December 2013, with a one well work commitment.

During the previous exploration period, the partners drilled one well to a depth of 5,085m and discovered a potentially large gas accumulation.

The north-western portion of the block contains the Kaisut Basin, an extension of the Anza Basin oil play being pursued by Africa Oil and partners.