Welcome!

.NET Authors: Lori MacVittie, Yeshim Deniz, Ivan Antsipau, Liz McMillan, Michael Bushong

News Feed Item

CORRECTION FROM SOURCE/Africa Oil Provides Operational Update and Second Quarter Results

VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 08/09/14 -- Africa Oil Corp. (TSX:AOI)(OMX:AOI) ("Africa Oil" or the "Company") reports a correction to the second quarter 2014 financial results issued on August 8, 2014. The 17th bullet point should have stated "Africa Oil opened the second quarter with cash of $434.3 million and working capital of $360.1 million. Africa Oil ended the second quarter with cash of $350.1 million and working capital of $245.3 million."

For clarity the entire amended news release is appended. No further corrections were made to the remainder of the news release.

Entering the year, the Company and its partners had seven drilling rigs operating in the region. Four Tullow-Africa Oil joint venture rigs are operating in the discovered basin in Northern Kenya in Blocks 10BB and 13T, one of which is a testing and completions unit. In addition, the Company and its partner have a rig operating in Block 9 in Kenya. In Ethiopia, the Company and its partners in the South Omo Block and Block 7/8 had rigs operating in each block. Drilling operations in Block 7/8 have been completed, and the rig has been released. Additionally, drilling operations in the South Omo Block have been completed and the rig is being de-mobilized whilst future drilling opportunities are being assessed. The Company expects to have five drilling rigs operating in Kenya through the remainder of 2014.


--  In January, the Company announced further drilling success with its
    sixth and seventh consecutive discoveries in the discovered basin in
    Northern Kenya at Amosing-1 and Ewoi-1. Amosing-1 is located 7
    kilometers southwest of the Ngamia-1 discovery along the Basin Bounding
    Fault Play in Block 10BB. Logs indicated 160 to 200 meters of potential
    net oil pay in good quality sandstone reservoirs. A down-dip appraisal
    well with a planned sidetrack is currently being drilled at Amosing-2/2A
    with an extended well test planned to start towards the end of the year.
    Ewoi-1 is located 4 kilometers to the east of the Etuko-1 discovery in
    the Basin Flank Play on the eastern side of the discovered basin in
    Northern Kenya also in Block 10BB. Logs indicated potential net pay of
    20 to 80 meters. Results of Ewoi-1 testing operations are expected to be
    announced in the coming weeks. 
--  In February, the Company announced the results of five well tests
    conducted on five Lokhone pay intervals at Etuko-1 located on the Basin
    Flank Play in Block 10BB. Light 36 degree API waxy crude oil was
    successfully flowed from three zones at a combined average rate of over
    550 barrels of oil equivalent per day ("bopd"). 
--  In March, the Company announced the results of the Etuko-2 exploration
    well drilled to test the upper Auwerwer sands overlying the previously
    announced Etuko discovery. Etuko-2 penetrated a potential significant
    oil column identified from formation pressure data and oil shows while
    drilling and in core, with good quality reservoir but flowed only water
    on drill stem test. The results are considered inconclusive and analysis
    is underway to consider further options to evaluate this reservoir. 
--  In March, the Company announced the results of a well test on the
    Ekales-1 discovery drilled in 2013 and located on the Basin Bounding
    Fault Play between the Ngamia-1 and Twiga South-1 discoveries. Testing
    operations on the Ekales-1 well confirmed this significant oil
    discovery. Two drill stem tests were completed and flowed at a combined
    rate of over 1,000 bopd from a combined 41 meter net pay interval. The
    upper zone had a very high productivity index of 4.3 stb/d/psi. 
--  In March, the Company announced the results of the Emong-1 well located
    in Block 13T (Kenya), 4 kilometers northwest of the Ngamia-1 field
    discovery. The well encountered oil and gas shows while drilling,
    however the Auwerwer sandstones that are the primary reservoirs in the
    Ngamia field were thin and poorly developed in Emong-1 and the well was
    plugged and abandoned. It is believed that the reservoir was poorly
    developed due to its proximity to the basin bounding fault and its
    location within what appears to be a local isolated slumped fault
    margin. This well, which was aimed at establishing an additional play,
    has no impact on the potential of the Ngamia oil accumulation or any
    other prospectivity in the discovered basin in Northern Kenya. 
--  In March, the Company completed a farmout transaction with Marathon Oil
    Corporation ("Marathon") whereby Marathon acquired a 50% interest in the
    Rift Basin Area leaving the Company with a 50% working interest. In
    accordance with the farmout agreement, Marathon was obligated to pay the
    Company $3.0 million in consideration of past exploration expenditures,
    and has agreed to fund the Company's working interest share of future
    joint venture expenditures to a maximum of $15.0 million with an
    effective date of June 30, 2012. Upon closing of the farmout, Marathon
    paid the Company $3.0 million in consideration of past exploration
    expenditures and $10.2 million being Marathon's and the Company's share
    of exploration expenditures from the effective date to the closing date
    of the farmout. 
--  In March, the Company completed a farmout transaction with New Age
    whereby New Age (Africa Global Energy) Limited ("New Age") acquired an
    additional 40% interest in the Company's Adigala Block leaving AOC with
    10% working interest. In accordance with the farmout agreement, New Age
    is obligated to fund the Company's 10% working interest share of
    expenditures related to the acquisition of a planned 1,000 kilometer 2D
    seismic program to a maximum expenditure of $10.0 million on a gross
    basis, following which the Company would be responsible for its working
    interest share of expenditures. 
--  In May, the Company announced the results of the Twiga-2 appraisal well
    where the initial wellbore was drilled near the basin bounding fault and
    encountered some 18 meters of net oil pay within alluvial fan facies,
    with limited reservoir quality. A decision was made to sidetrack the
    well away from the fault to explore north of Twiga-1 and some 62 meters
    of vertical net oil pay was discovered in the Auwerwer formation at
    Twiga-2A, similar in quality to the initial Twiga-1 discovery. Testing
    at Twiga-2A is expected to commence in August. 
--  In May, the Company announced the results of the Sala-1 exploration well
    at Block 9 in Kenya, which tested a large prospect on the northeastern
    flank of the Cretaceous Anza rift, which is up- dip of two wells that
    had significant hydrocarbon shows. An upper gas bearing interval tested
    dry gas at a maximum rate of 6 mmcf/d from a 25 meter net pay interval.
    The interval had net sand of over 125 meters and encountered as gas-
    water contact so there is potential to drill up-dip on the structure
    where the entire interval will be above the gas-water contact. A lower
    interval tested low rates of dry gas from a 50 meter net pay interval
    which can also be accessed at the up-dip location. Significant oil shows
    were also encountered while drilling. The Sala-2 appraisal well located
    on the crest of the discovery spud in early August. The Company believes
    there is a very strong market for gas in Kenya and have already engaged
    in discussions with the Government of Kenya around a fast track gas to
    power development and discussions are also ongoing around securing PSC
    gas terms. 
--  In May, the Company drilled a new prospect in the discovered basin in
    Northern Kenya, the Ekunyuk-1 well, located on the Basin Flank Play on
    trend with the Etuko and Ewoi discoveries. The well encountered 5 meters
    of net oil pay and found 150 meters of good quality Lokhone sands,
    although there was a lack of trap at this level within the well. The
    quality of Lokhone sands indicates that there is further exploration
    potential in this area of the basin. 
--  In May, the Company completed drilling of the Shimela-1 exploration well
    at the South Omo Block in Ethiopia to test a new basin in the Tertiary
    trend, the Chew Bahir Basin, located on the eastern side of the block,
    but the well encountered water bearing reservoirs and volcanics with
    trace gas shows. 
--  In June, the Company announced the results of the Ngamia-2 appraisal
    well which was drilled 1.7 kilometers from the Ngamia-1 discovery well
    to test the northwest flank of the field. The well encountered up to 39
    meters of net oil pay and 11 meters of net gas pay and appeared to have
    identified a new fault trap, north of the main Ngamia accumulation. Four
    to six additional appraisal wells are planned in the Ngamia field area,
    including the Ngamia-3 well which is currently drilling. 
--  In June, the Company drilled the Agete-2 exploratory appraisal well
    drilled some 2.2 kilometers southeast of Agete-1. The well intersected
    water bearing reservoirs at this down-dip location and further appraisal
    drilling is planned. Additionally in June, the Agete-1 well was tested
    at 500 bopd. 
--  In July, the Company completed drilling of the Gardim-1 exploration well
    on the eastern flank of the Chew Bahir Basin. The Gardim-1 well
    intersected lacustrine and volcanic formations, similar to those found
    in the Shimela-1 well, again minor intervals encountered gas shows.
    Drilling operations are being demobilized while these results are
    integrated into the regional basin model. Seismic interpretation
    continues on independent prospectivity elsewhere in the South Omo Block
    and the next phase of the Ethiopia exploration campaign will target
    these prospects. 
--  Additionally in Ethiopia, the Company and its partners completed the
    drilling of the El Kuran-3 appraisal well on Block 8 in the first half
    of the year. El Kuran-3 was an appraisal of a discovery made by Tenneco
    in the 1970's, and encountered a significant but tight gas-condensate
    zone in Jurassic Hammanlei carbonates. The well was suspended pending
    further evaluation. Options regarding the future of the blocks are being
    evaluated. 
--  The Company and its partners continue to actively acquire and process
    seismic data in Blocks 12A, 10BA, 10BB and 13T in Kenya. In Block 12A, a
    674 kilometer 2D seismic program was completed in the first quarter and
    the crew has demobilized. In Block 10BB, a 750 kilometer North Kerio
    Basin 2D seismic program was completed in the first quarter and the crew
    is mobilizing to acquire a 600 kilometer 2D program split between Blocks
    10BA, 10BB and 13T over the North Lokichar Basin. In Blocks 10BB and
    13T, acquisition of a 550 square kilometer 3D seismic program over the
    discoveries and prospects along the Basin Bounding Fault Play in the
    discovered basin in Northern Kenya is ongoing and is scheduled to
    complete in the fourth quarter. In Ethiopia, the Company, as operator,
    and its partner are making preparations to acquire a minimum 400
    kilometer 2D seismic program over the Rift Basin Area commencing in the
    fourth quarter. Also in Ethiopia, the Company and its partners continue
    to acquire a 1,000 kilometer 2D seismic program on the Adigala Block. 
--  Africa Oil opened the second quarter with cash of $434.3 million and
    working capital of $360.1 million. Africa Oil ended the second quarter
    with cash of $350.1 million and working capital of $245.3 million. 
--  The Company is currently working with its independent resource evaluator
    and expects to release an update to the contingent and prospective
    resources for the discovered basin in Northern Kenya in Blocks 10BB and
    13T during the third quarter. 
--  The company has now graduated to the main board of the TSX and to the
    NASDAQ OMX Stockholm main board. 
--  Mark Dingley has been appointed to the role of Vice President,
    Operations of the Company, responsible for all of the Company's operated
    activities. Mr. Dingley has been with the Company since May, 2013 acting
    as the President of Africa Oil Ethiopia B.V. and Chief Operating Officer
    of Horn Petroleum Corporation. Mr. Dingley joined the Company after 12
    years with Talisman Energy Inc. where he served as Vice President,
    Middle East Operations as well as General Manager, Peru; Manager,
    Corporate Security & Surface Risk; and Manager, Government Affairs &
    Deputy General Manager, Sudan. David Grellman, formerly Vice President,
    Operations will retire following the drilling of the Sala-2 appraisal
    well in Block 9. 
--  The Company has a significant exploration and appraisal program set out
    for 2014 which will see over 20 wells completed. The program is focused
    on drilling out the remaining prospect inventory in the discovered basin
    in Northern Kenya, appraising existing and future discoveries with the
    aid of the new 3D seismic survey, drilling three new basin opening wells
    in the second half of the year and progressing the development studies
    towards project sanction in the discovered basin in Northern Kenya. This
    significant program in 2014 is fully funded. 

Keith Hill, President and CEO of Africa Oil, commented, "We are looking forward to the results of three new basin opening wells to be drilled in the second half of 2014 which have the potential to unlock significant value in terms of new prospects and resources. The ongoing drilling in the discovered basin in Northern Kenya has been quite helpful in understanding the distribution of the best reservoir facies and will no doubt be enhanced by the ongoing 3D seismic survey. We remain very bullish in not only the existing discoveries but in the remaining prospects in the discovered basin in Northern Kenya. Our goal is to open up at least one new basin and to move a significant number of barrels from prospective to contingent resources by the end of 2014 as we move the field development program forward."


                                                                            
                                                                            
Second Quarter 2014 Financial and Operating Highlights                      
                                                                            
Consolidated Statement of Net Loss and Comprehensive Loss                   
(Thousands of United States Dollars)                                        
(Unaudited)                                                                 
                       -----------------------------------------------------
                        Three months Three months   Six months   Six months 
                               ended        ended        ended        ended 
                                         June 30,     June 30,     June 30, 
                       June 30, 2014         2013         2014         2013 
----------------------------------------------------------------------------
                                                                            
                                                                            
Operating expenses                                                          
  Salaries and benefits $        464 $        477 $        922 $      1,040 
  Stock-based                                                               
   compensation                2,955        7,088       12,507        7,785 
  Travel                         288          446          597          727 
  Office and general             232          257          416          460 
  Donation                       750            -        1,500          100 
  Depreciation                    17           12           34           25 
  Professional fees              157           91          352          194 
  Stock exchange and                                                        
   filing fees                   882          162        1,071          362 
  Impairment of                                                             
   intangible                                                               
   exploration assets         30,833            -       30,833            - 
----------------------------------------------------------------------------
                                                                            
                              36,578        8,533       48,232       10,693 
                                                                            
Finance income                  (433)        (464)        (824)      (3,563)
Finance expense                    5        1,354           86        2,405 
----------------------------------------------------------------------------
                                                                            
Net loss and                                                                
 comprehensive loss           36,150        9,423       47,494        9,535 
----------------------------------------------------------------------------
Net (income) loss and                                                       
 comprehensive (income)                                                     
 loss attributable to                                                       
 non-controlling                                                            
 interest                        294          160          500       (1,602)
Net loss and                                                                
 comprehensive loss                                                         
 attributable to common                                                     
 shareholders                 35,856        9,263       46,994       11,137 
----------------------------------------------------------------------------
                                                                            
Net loss attributable                                                       
 to common shareholders                                                     
 per share                                                                  
  Basic                 $       0.12 $       0.04 $       0.15 $       0.04 
  Diluted               $       0.12 $       0.04 $       0.15 $       0.04 
----------------------------------------------------------------------------
                                                                            
Weighted average number                                                     
 of shares outstanding                                                      
 for the purpose of                                                         
 calculating earnings                                                       
 per share                                                                  
  Basic                  310,528,286  252,735,463  310,249,223  252,452,274 
  Diluted                310,528,286  252,735,463  310,249,223  252,452,274 
----------------------------------------------------------------------------

Operating expenses increased $28.0 million for the three months ended June 30, 2014 compared to the same period in the prior year. Upon further evaluating the drilling results of the El Kuran-3 well, the Company has written off $30.8 million of previously capitalized Blocks 7/8 exploration expenditures in Ethiopia. The $4.1 million decrease in stock-based compensation is result of 120,000 stock options of AOC issued to directors, officers and employees in the second quarter of 2014 versus 5,673,500 stock options of AOC issued to directors, officers and employees in the second quarter of 2013, of which one- third vested immediately. The Company made $0.8 million of donations to the Lundin Foundation in the second quarter of 2014 versus nil in the same period in 2013, resulting in a $0.8 million increase in operating expenses. Stock exchange and filing fees increased $0.7 as a result of costs associated with the graduation to the TSX in Canada and the NASDAQ OMX Stockholm main board.

Operating expenses increased $37.5 million for the six months ended June 30, 2014 compared to the same period in the prior year. Upon further evaluating the drilling results of the El Kuran-3 well, the Company has written off $30.8 million of previously capitalized Blocks 7/8 exploration expenditures in Ethiopia. The $4.7 million increase in stock-based compensation is mainly the result of an increase in the fair value of each stock option granted in the first half of 2014 compared to those granted in the first half of 2013. The increase in the fair market value is primarily attributable to the exercise price being higher for the options granted in the first half of 2014 compared to those granted in the first half of 2013. The Company made $1.5 million and $0.1 million of donations to the Lundin Foundation in the first half of 2014 and 2013, respectively, resulting in a $1.4 million increase in operating expenses. Stock exchange and filing fees increased $0.7 as a result of costs associated with the graduation to the TSX in Canada and the NASDAQ OMX Stockholm main board.

Financial income and expense is made up of the following items:


(Thousands of United States Dollars)                                        
(Unaudited)                                                                 
                        Three months Three months   Six months   Six months 
                               ended        ended        ended        ended 
                            June 30,     June 30,     June 30,     June 30, 
                                2014         2013         2014         2013 
----------------------------------------------------------------------------
                                                                            
Fair value adjustment -                                                     
 warrants                          5          155            1        2,882 
Interest and other                                                          
 income                          387          309          823          681 
Bank charges                      (5)          (5)         (11)         (13)
Foreign exchange loss             41       (1,349)         (75)      (2,392)
----------------------------------------------------------------------------
                                                                            
Finance income                   433          464          824        3,563 
Finance expense                   (5)      (1,354)         (86)      (2,405)
----------------------------------------------------------------------------

At June 30, 2014, nil warrants were outstanding in the Company. In June 2014, all of the remaining 9,546,248 Horn Petroleum Corporation ("Horn") warra nts expired unexercised. The Company recorded a $0.001 million gain on the revaluation of warrants for the six months ended June 30, 2014 as the Horn warrants expired unexercised.

Interest income increased in the second quarter of 2014 due to an increase in cash as a result of the brokered private placement in October of 2013.

Foreign exchange gains and losses are primarily related to changes in the value of the Canadian dollar in comparison to the US dollar. Historically, the Company has recorded foreign exchange gains when the Canadian dollar has strengthened versus the US dollar, and has recorded losses when the Canadian dollar has weakened versus the US dollar.


                                                                            
                                                                            
Consolidated Balance Sheets                                                 
(Thousands United States Dollars)                                           
(Unaudited)                                                                 
                                                                            
                                                     June 30,  December 31, 
                                                         2014          2013 
--------------------------------------------------------------------------- 
                                                                            
                                                                            
ASSETS                                                                      
Current assets                                                              
  Cash and cash equivalents                     $     350,052 $     493,209 
  Accounts receivable                                   1,896         3,195 
  Prepaid expenses                                      1,366         1,379 
--------------------------------------------------------------------------- 
                                                      353,314       497,783 
Long-term assets                                                            
  Restricted cash                                       1,700         1,250 
  Property and equipment                                   78           103 
  Intangible exploration assets                       651,081       488,688 
--------------------------------------------------------------------------- 
                                                      652,859       490,041 
                                                                            
Total assets                                    $   1,006,173 $     987,824 
--------------------------------------------------------------------------- 
                                                                            
LIABILITIES AND EQUITY                                                      
                                                                            
Current liabilities                                                         
  Accounts payable and accrued liabilities      $     108,048 $      57,976 
  Current portion of warrants                               -             1 
--------------------------------------------------------------------------- 
                                                      108,048        57,977 
                                                                            
Total liabilities                                     108,048        57,977 
--------------------------------------------------------------------------- 
                                                                            
Equity attributable to common shareholders                                  
  Share capital                                     1,012,255     1,007,414 
  Contributed surplus                                  35,327        24,396 
  Deficit                                            (197,730)     (150,736)
--------------------------------------------------------------------------- 
                                                      849,852       881,074 
  Non-controlling interest                             48,273        48,773 
--------------------------------------------------------------------------- 
Total equity                                          898,125       929,847 
--------------------------------------------------------------------------- 
                                                                            
Total liabilities and equity                    $   1,006,173 $     987,824 
--------------------------------------------------------------------------- 

The increase in total assets from December 2013 to June 2014 is primarily attributable to intangible exploration expenditures incurred during the quarter in Kenya, Ethiopia and Puntland (Somalia).


                                                                            
                                                                            
Consolidated Statement of Cash Flows                                        
(Thousands United States Dollars)                                           
(Unaudited)                                                                 
                                                                            
                    Three months  Three months    Six months     Six months 
                           ended         ended         ended          ended 
                   June 30, 2014 June 30, 2013 June 30, 2014  June 30, 2013 
----------------------------------------------------------------------------
                                                                            
Cash flows provided                                                         
 by (used in):                                                              
Operations:                                                                 
                                                                            
                                                                            
Net loss and                                                                
 comprehensive loss                                                         
 for the period     $    (36,150) $     (9,423) $    (47,494)    $   (9,535)
Items not affecting                                                         
 cash:                                                                      
  Stock-based                                                               
   compensation            2,955         7,088        12,507          7,785 
  Depreciation                17            12            34             25 
  Impairment of                                                             
   intangible                                                               
   exploration                                                              
   assets                 30,833             -        30,833              - 
  Fair value                                                                
   adjustment -                                                             
   warrants                   (5)         (155)           (1)        (2,882)
  Unrealized                                                                
   foreign exchange                                                         
   loss                      (42)        1,116            75          2,235 
  Changes in non-                                                           
   cash operating                                                           
   working capital            51           (46)         (680)          (796)
----------------------------------------------------------------------------
                          (2,341)       (1,408)       (4,726)        (3,168)
Investing:                                                                  
  Property and                                                              
   equipment                                                                
   expenditures               (1)          (27)           (9)           (41)
  Intangible                                                                
   exploration                                                              
   expenditures         (114,007)      (55,304)     (206,433)       (94,570)
  Farmout proceeds             -             -        13,207              - 
  Changes in non-                                                           
   cash investing                                                           
   working capital        30,511            (7)       52,064          6,827 
----------------------------------------------------------------------------
                         (83,497)      (55,338)     (141,171)       (87,784)
                                                                            
Financing:                                                                  
  Common shares                                                             
   issued                  1,515         1,005         3,265          1,005 
  Deposit of cash                                                           
   for bank                                                                 
   guarantee                   -        (1,250)         (450)        (1,250)
  Release of bank                                                           
   guarantee                   -           450             -            744 
----------------------------------------------------------------------------
                           1,515           205         2,815            499 
Effect of exchange                                                          
 rate changes on                                                            
 cash and cash                                                              
 equivalents                                                                
 denominated in                                                             
 foreign currency             42        (1,116)          (75)        (2,235)
----------------------------------------------------------------------------
Decrease in cash                                                            
 and cash                                                                   
 equivalents             (84,281)      (57,657)     (143,157)       (92,688)
Cash and cash                                                               
 equivalents,                                                               
 beginning of                                                               
 period                  434,333       237,144       493,209     $  272,175 
----------------------------------------------------------------------------
Cash and cash                                                               
 equivalents, end                                                           
 of period               350,052  $    179,487       350,052     $  179,487 
----------------------------------------------------------------------------
Supplementary                                                               
 information:                                                               
  Interest paid              Nil           Nil           Nil            Nil 
  Income taxes paid          Nil           Nil           Nil            Nil 
----------------------------------------------------------------------------

The decrease in cash for the six months ended June 30, 2014 is mainly the result of intangible exploration expenditures and cash-based operating expenses, offset partially by proceeds received on the Rift Basin Area farmout.


                                                                            
                                                                            
Consolidated Statement of Equity                                            
(Thousands United States Dollars)                                           
(Unaudited)                                                                 
                                            --------------------------------
                                                                            
                                                   June 30,        June 30, 
                                                       2014            2013 
----------------------------------------------------------------------------
                                                                            
                                                                            
Share capital:                                                              
  Balance, beginning of period               $    1,007,414  $      558,555 
  Exercise of options                                 4,841           1,468 
----------------------------------------------------------------------------
  Balance, end of period                          1,012,255         560,023 
----------------------------------------------------------------------------
                                                                            
Contributed surplus:                                                        
  Balance, beginning of period               $       24,396  $       12,123 
  Stock based compensation                           12,507           7,785 
  Exercise of options                                (1,576)           (463)
----------------------------------------------------------------------------
  Balance, end of period                             35,327          19,445 
----------------------------------------------------------------------------
                                                                            
Deficit:                                                                    
  Balance, beginning of period               $     (150,736) $      (98,076)
  Net loss and comprehensive loss                                           
   attributable to common shareholders              (46,994)        (11,137)
----------------------------------------------------------------------------
  Balance, end of period                           (197,730)       (109,213)
----------------------------------------------------------------------------
                                                                            
  Total equity attributable to common                                       
   shareholders                              $      849,852         470,255 
----------------------------------------------------------------------------
                                                                            
Non-controlling interest:                                                   
  Balance, beginning of period               $       48,773  $       47,551 
  Net income (loss) and comprehensive income                                
   (loss) attributable to non-controlling                                   
   interest                                            (500)          1,602 
----------------------------------------------------------------------------
  Balance, end of period                             48,273          49,153 
----------------------------------------------------------------------------
                                                                            
  Total equity                               $      898,125  $      519,408 
----------------------------------------------------------------------------

The Company's consolidated financial statements, notes to the financial statements, management's discussion and analysis for the three and six months ended June 30, 2014 and the 2013 Annual Information Form have been filed on SEDAR (www.sedar.com) and are available on the Company's website (www.africaoilcorp.com).

Outlook

The Company expects to have five drilling rigs operating through the remainder of 2014, one of which is currently being utilized as testing and completion rig. Completion of the brokered private placement in October 2013 increased the Company's liquidity and capital resource position which is expected to fully fund the Company's portion of 2014 exploration, appraisal and development activities.

The near term focus of exploration is to continue drilling out the remaining prospect inventory in the discovered basin in Northern Kenya, appraising existing and future discoveries with the aid of the new 3D seismic survey, drilling three new basin opening wells in the second half of the year and progressing the development studies towards project sanction in the discovered basin in Northern Kenya.

Given the significant volumes discovered and the extensive exploration and appraisal program planned to fully assess the upside potential of the basin, the Tullow-Africa Oil joint venture has agreed with the Government of Kenya to commence development studies. In addition, the partnership is involved in a comprehensive pre-FEED study of the export pipeline. The current ambition of the Government of Kenya and the joint venture partnership is to reach project sanction for development, including an export pipeline, by the end of 2015/early 2016. The governments of Kenya, Uganda and Rwanda have signed a MoU and formed a Steering Committee to progress a regional crude oil export pipeline from Uganda through Kenya. The Kenya upstream partners have also signed a cooperation agreement with the Uganda upstream partners in support of the same objective.

Africa Oil Corp. 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. Africa Oil's East African holdings are in within a world-class exploration play fairway with a total gross land package in this prolific region in excess of 215,000 square kilometers. The East African Rift Basin system is one of the last of the great rift basins to be explored. Seven new significant discoveries have been announced in the discovered basin in Northern Kenya in which the Company holds a 50% interest along with operator Tullow Oil plc. Good quality existing seismic show robust leads and prospects throughout Africa Oil's project areas. The Company is listed on the TSX and on NASDAQ OMX Stockholm main board under the symbol "AOI".

FORWARD LOOKING INFORMATION

Certain statements made and information contained herein constitute "forward-looking information" (within the meaning of applicable Canadian securities legislation). Such statements and information (together, "forward looking statements") relate to future events or the Company's future performance, business prospects or opportunities. Forward-looking statements include, but are not limited to, statements with respect to estimates of reserves and or resources, future production levels, future capital expenditures and their allocation to exploration and development activities, future drilling and other exploration and development activities, ultimate recovery of reserves or resources and dates by which certain areas will be explored, developed or reach expected operating capacity, that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management.

All statements other than statements of historical fact may be forward-looking statements. Statements concerning proven and probable reserves and resource estimates may also be deemed to constitute forward-looking statements and reflect conclusions that are based on certain assumptions that the reserves and resources can be economically exploited. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "seek", "anticipate", "plan", "continue", "estimate", "expect, "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe" and similar expressions) are not statements of historical fact and may be "forward-looking statements". Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. The Company believes that the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon. The Company does not intend, and does not assume any obligation, to update these forward- looking statements, except as required by applicable laws. These forward-looking statements involve risks and uncertainties relating to, among other things, changes in oil prices, results of exploration and development activities, uninsured risks, regulatory changes, defects in title, availability of materials and equipment, timeliness of government or other regulatory approvals, actual performance of facilities, availability of financing on reasonable terms, availability of third party service providers, equipment and processes relative to specifications and expectations and unanticipated environmental impacts on operations. Actual results may differ materially from those expressed or implied by such forward-looking statements.

ON BEHALF OF THE BOARD

"Keith C. Hill" President and CEO

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

@ThingsExpo Stories
Software AG helps organizations transform into Digital Enterprises, so they can differentiate from competitors and better engage customers, partners and employees. Using the Software AG Suite, companies can close the gap between business and IT to create digital systems of differentiation that drive front-line agility. We offer four on-ramps to the Digital Enterprise: alignment through collaborative process analysis; transformation through portfolio management; agility through process automation and integration; and visibility through intelligent business operations and big data.
There will be 50 billion Internet connected devices by 2020. Today, every manufacturer has a propriety protocol and an app. How do we securely integrate these "things" into our lives and businesses in a way that we can easily control and manage? Even better, how do we integrate these "things" so that they control and manage each other so our lives become more convenient or our businesses become more profitable and/or safe? We have heard that the best interface is no interface. In his session at Internet of @ThingsExpo, Chris Matthieu, Co-Founder & CTO at Octoblu, Inc., will discuss how these devices generate enough data to learn our behaviors and simplify/improve our lives. What if we could connect everything to everything? I'm not only talking about connecting things to things but also systems, cloud services, and people. Add in a little machine learning and artificial intelligence and now we have something interesting...
Last week, while in San Francisco, I used the Uber app and service four times. All four experiences were great, although one of the drivers stopped for 30 seconds and then left as I was walking up to the car. He must have realized I was a blogger. None the less, the next car was just a minute away and I suffered no pain. In this article, my colleague, Ved Sen, Global Head, Advisory Services Social, Mobile and Sensors at Cognizant shares his experiences and insights.
We are reaching the end of the beginning with WebRTC and real systems using this technology have begun to appear. One challenge that faces every WebRTC deployment (in some form or another) is identity management. For example, if you have an existing service – possibly built on a variety of different PaaS/SaaS offerings – and you want to add real-time communications you are faced with a challenge relating to user management, authentication, authorization, and validation. Service providers will want to use their existing identities, but these will have credentials already that are (hopefully) irreversibly encoded. In his session at Internet of @ThingsExpo, Peter Dunkley, Technical Director at Acision, will look at how this identity problem can be solved and discuss ways to use existing web identities for real-time communication.
Can call centers hang up the phones for good? Intuitive Solutions did. WebRTC enabled this contact center provider to eliminate antiquated telephony and desktop phone infrastructure with a pure web-based solution, allowing them to expand beyond brick-and-mortar confines to a home-based agent model. It also ensured scalability and better service for customers, including MUY! Companies, one of the country's largest franchise restaurant companies with 232 Pizza Hut locations. This is one example of WebRTC adoption today, but the potential is limitless when powered by IoT. Attendees will learn real-world benefits of WebRTC and explore future possibilities, as WebRTC and IoT intersect to improve customer service.
From telemedicine to smart cars, digital homes and industrial monitoring, the explosive growth of IoT has created exciting new business opportunities for real time calls and messaging. In his session at Internet of @ThingsExpo, Ivelin Ivanov, CEO and Co-Founder of Telestax, will share some of the new revenue sources that IoT created for Restcomm – the open source telephony platform from Telestax. Ivelin Ivanov is a technology entrepreneur who founded Mobicents, an Open Source VoIP Platform, to help create, deploy, and manage applications integrating voice, video and data. He is the co-founder of TeleStax, an Open Source Cloud Communications company that helps the shift from legacy IN/SS7 telco networks to IP-based cloud comms. An early investor in multiple start-ups, he still finds time to code for his companies and contribute to open source projects.
The Internet of Things (IoT) promises to create new business models as significant as those that were inspired by the Internet and the smartphone 20 and 10 years ago. What business, social and practical implications will this phenomenon bring? That's the subject of "Monetizing the Internet of Things: Perspectives from the Front Lines," an e-book released today and available free of charge from Aria Systems, the leading innovator in recurring revenue management.
The Internet of Things will put IT to its ultimate test by creating infinite new opportunities to digitize products and services, generate and analyze new data to improve customer satisfaction, and discover new ways to gain a competitive advantage across nearly every industry. In order to help corporate business units to capitalize on the rapidly evolving IoT opportunities, IT must stand up to a new set of challenges.
There’s Big Data, then there’s really Big Data from the Internet of Things. IoT is evolving to include many data possibilities like new types of event, log and network data. The volumes are enormous, generating tens of billions of logs per day, which raise data challenges. Early IoT deployments are relying heavily on both the cloud and managed service providers to navigate these challenges. In her session at 6th Big Data Expo®, Hannah Smalltree, Director at Treasure Data, to discuss how IoT, Big Data and deployments are processing massive data volumes from wearables, utilities and other machines.
All major researchers estimate there will be tens of billions devices – computers, smartphones, tablets, and sensors – connected to the Internet by 2020. This number will continue to grow at a rapid pace for the next several decades. With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo in Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be!
P2P RTC will impact the landscape of communications, shifting from traditional telephony style communications models to OTT (Over-The-Top) cloud assisted & PaaS (Platform as a Service) communication services. The P2P shift will impact many areas of our lives, from mobile communication, human interactive web services, RTC and telephony infrastructure, user federation, security and privacy implications, business costs, and scalability. In his session at Internet of @ThingsExpo, Erik Lagerway, Co-founder of Hookflash, will walk through the shifting landscape of traditional telephone and voice services to the modern P2P RTC era of OTT cloud assisted services.
While great strides have been made relative to the video aspects of remote collaboration, audio technology has basically stagnated. Typically all audio is mixed to a single monaural stream and emanates from a single point, such as a speakerphone or a speaker associated with a video monitor. This leads to confusion and lack of understanding among participants especially regarding who is actually speaking. Spatial teleconferencing introduces the concept of acoustic spatial separation between conference participants in three dimensional space. This has been shown to significantly improve comprehension and conference efficiency.
The Internet of Things is tied together with a thin strand that is known as time. Coincidentally, at the core of nearly all data analytics is a timestamp. When working with time series data there are a few core principles that everyone should consider, especially across datasets where time is the common boundary. In his session at Internet of @ThingsExpo, Jim Scott, Director of Enterprise Strategy & Architecture at MapR Technologies, will discuss single-value, geo-spatial, and log time series data. By focusing on enterprise applications and the data center, he will use OpenTSDB as an example to explain some of these concepts including when to use different storage models.
SYS-CON Events announced today that Gridstore™, the leader in software-defined storage (SDS) purpose-built for Windows Servers and Hyper-V, will exhibit at SYS-CON's 15th International Cloud Expo®, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Gridstore™ is the leader in software-defined storage purpose built for virtualization that is designed to accelerate applications in virtualized environments. Using its patented Server-Side Virtual Controller™ Technology (SVCT) to eliminate the I/O blender effect and accelerate applications Gridstore delivers vmOptimized™ Storage that self-optimizes to each application or VM across both virtual and physical environments. Leveraging a grid architecture, Gridstore delivers the first end-to-end storage QoS to ensure the most important App or VM performance is never compromised. The storage grid, that uses Gridstore’s performance optimized nodes or capacity optimized nodes, starts with as few a...
The Transparent Cloud-computing Consortium (abbreviation: T-Cloud Consortium) will conduct research activities into changes in the computing model as a result of collaboration between "device" and "cloud" and the creation of new value and markets through organic data processing High speed and high quality networks, and dramatic improvements in computer processing capabilities, have greatly changed the nature of applications and made the storing and processing of data on the network commonplace. These technological reforms have not only changed computers and smartphones, but are also changing the data processing model for all information devices. In particular, in the area known as M2M (Machine-To-Machine), there are great expectations that information with a new type of value can be produced using a variety of devices and sensors saving/sharing data via the network and through large-scale cloud-type data processing. This consortium believes that attaching a huge number of devic...
Innodisk is a service-driven provider of industrial embedded flash and DRAM storage products and technologies, with a focus on the enterprise, industrial, aerospace, and defense industries. Innodisk is dedicated to serving their customers and business partners. Quality is vitally important when it comes to industrial embedded flash and DRAM storage products. That’s why Innodisk manufactures all of their products in their own purpose-built memory production facility. In fact, they designed and built their production center to maximize manufacturing efficiency and guarantee the highest quality of our products.
All major researchers estimate there will be tens of billions devices - computers, smartphones, tablets, and sensors - connected to the Internet by 2020. This number will continue to grow at a rapid pace for the next several decades. Over the summer Gartner released its much anticipated annual Hype Cycle report and the big news is that Internet of Things has now replaced Big Data as the most hyped technology. Indeed, we're hearing more and more about this fascinating new technological paradigm. Every other IT news item seems to be about IoT and its implications on the future of digital business.
Can call centers hang up the phones for good? Intuitive Solutions did. WebRTC enabled this contact center provider to eliminate antiquated telephony and desktop phone infrastructure with a pure web-based solution, allowing them to expand beyond brick-and-mortar confines to a home-based agent model. Download Slide Deck: ▸ Here
BSQUARE is a global leader of embedded software solutions. We enable smart connected systems at the device level and beyond that millions use every day and provide actionable data solutions for the growing Internet of Things (IoT) market. We empower our world-class customers with our products, services and solutions to achieve innovation and success. For more information, visit www.bsquare.com.
With the iCloud scandal seemingly in its past, Apple announced new iPhones, updates to iPad and MacBook as well as news on OSX Yosemite. Although consumers will have to wait to get their hands on some of that new stuff, what they can get is the latest release of iOS 8 that Apple made available for most in-market iPhones and iPads. Originally announced at WWDC (Apple’s annual developers conference) in June, iOS 8 seems to spearhead Apple’s newfound focus upon greater integration of their products into everyday tasks, cross-platform mobility and self-monitoring. Before you update your device, here is a look at some of the new features and things you may want to consider from a mobile security perspective.