Horn Petroleum provides operational update

Friday, Nov 16, 2012

Africa Oil Corp. (“Africa Oil” or the “Company”) is pleased to provide the following update on exploration operations in Puntland (Somalia) operated by Horn Petroleum Corp. (“Horn”). Africa Oil holds an approximate 45% equity interest in Horn which in turn holds a 60% working interest in the Dharoor and Nugaal Valley Production Sharing Agreements (“PSAs”). Horn’s joint venture partners in these blocks are Range Resources (20%) and Red Emperor (20%).

Horn has demobilized the drilling rig and associated equipment and has completed restoration of both drilling locations.  Efforts are now focused on making preparations for a seismic acquisition campaign in the Dharoor PSA which will include a regional seismic reconnaissance grid in the previously unexplored eastern portion of the basin as well as prospect specific seismic to delineate a drilling candidate in the western portion of the basin where an active petroleum system was confirmed by the recent drilling at the Shabeel-1 and Shabeel North-1 locations.  This seismic program is expected to commence in the first half of 2013.  The Company continues to pursue efforts to drill an exploration well in the Nugaal PSA and is working with the Puntland government authorities to move this project forward.

Horn is in active discussions with potential joint venture partners and also is reviewing new venture opportunities in the region.

Horn President and CEO, David Grellman, commented, “We remain very encouraged by the exploration potential of these Jurassic rift basins in Puntland. We have committed to the next exploration phase in both PSAs and plan to aggressively explore both areas to confirm this potential. We are also optimistic that the political progress in Somalia will continue and allow oil and gas exploration in the region to expand.”

Source: Horn Petroleum Corp.

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