3 Which has a long, successful history in Africa 2 billion invested in Africa to date
The Last Undiscovered Elephants Poor contract terms except Kurdistan High potential Deep water Expensive BP disaster Deep water Highly competitive High potential Source Casey Research Report 2010
5 Why East Africa One of the last areas on earth where onshore billion barrel accumulations can still be found with good contract terms. Ability to assemble massive acreage position of almost 300,000 sq. km. (74MM acres,…
6 Surrounded on all sides by billions of barrels of oil AOI Assets - Ethiopia - Kenya - Puntland (Somalia)
7 Recent Highlights Closed Tullow farm-out and Centric acquisition Signed agreement to acquire Lion Energy Corp. Balance Sheet strengthened by forced warrant exercise and Lion transaction resulting in 118mm in cash with a 50mm…
8 Tullow Deal Closed Tullow is one of the most successful explorers in last decade and found the analogous deposit in the Albert Graben of Uganda. Drilled 35 out of 36 successful wells. Tullow takes 50% and operatorship in 4…
9 Centric Acquisition Closing Feb, 2011 Block 10BA is last remaining prospective block in heart of East Africa rift trend Hydrocarbon fields New potential rift trend in Mali Tertiary Rift Cretaceous Fully or partially carried…
10 Africa Oil Promotes* Minimum Kenya Working Interest Paying Interest Work Program Block 10BB 50% 10% 600 km seismic and 1 well Block 10BA 50% 20% 750 km seismic and 1 well Block 10A 30% 0% 500 km seismic and 1 well…
11 Partnership Interests Kenya Tullow (Operator) 50% Tullow (Operator) 50% Africa Oil 30% Block 10BB Block 10A Africa Oil 50% EAX (Black Marlin) 20% Tullow (Operator) 50% Africa Oil (Operator) Blocks 12A/13T Block 9 Africa…
12 Kenya Gas discovery Africa Oil now operating AOI holds 6 blocks in Kenya* 4 blocks on Tertiary Rift trend, 2 on Cretaceous Rift trend All blocks except Block 9 farmed out to Tullow *Subject to Centric deal…
13 Kenya Block 10BB Area = 12,638 km2 13T Loperot oil discovery in 10BB with N-Kerio many large follow up prospects Lake Turkana AOC holds a 40% carried interest, 10% paying interest Analogous to Albert Graben of Uganda…
Surface Geochemical Anomalies Southern Lake Albert Block 10BB Lake Seeps Outboard Nzizi / Mputa (Pelican prospect) Deep basin center vertical migration (episodic) w/smaller seeps Basin margins lateral migration w/massive…
Lead Chorea 15 Chorea Complex Loperot discovery Most Likely Prospective Resources = 400 MMBO
Kerio North Kerio North Kerio North Kerio North ML Prospect size 150 MMBO
Block 10BA Multiple slicks interpreted from ASAR satellite data Onshore seep documented 1984; similar to Lake Albert seeps Total gross P50 prospective resources totaling 2.2 billion barrels (unrisked)* P10 4.4 billion barrels P90…
18 Lake Turkana Block 10BA 1984 Seismic
19 Kenya--Block 10A Kenya Area = 14,597 km 2 AOC holds a 30% carried working interest Lake Cretaceous rift graben Turkana extending into Kenya from Sudan 3 old wells with up to 2000 foot thick columns of residual oil…
20 Block 10A New Play Concepts Paipai Prospect-575 MMBO Turtle structure () AOC Exploration Strategy: Find & drill structural traps which have maintained structural integrity through Tertiary readjustments Paipai…
21 Kenya Blocks 12A / 13T AOC holds 50% ground floor interest Protection acreage along Tertiary rift trend south of 10BB Highly underexplored with no seismic or wells drilled Plan Full Tensor Gravity (FTG), geochem and…
22 Kenya Block 9 Bogal-1 Summary (5,085m TD): - Cretaceous SS are gas-bearing - 91 m net gas pay - Best estimate for total gas 3 TCF (gross) Challenges: - Commercial flow rates - Monetizing dry gas
Kenyas Need for Gas Kenyas energy Kenya Primary Energy consumption growing by Consumption, 1980- 1980-2008 8% annually 0.25 Currently, 68% of 0.2 Energy Consumed (Quadrillion BTU) Kenyas primary energy needs come from the 0.15…
Ethiopia AOI holds blocks in 3 different trends - in Tertiary Rift (South Omo) Karoo Rift (Ogaden) and Jurassic rift (Adigala) Exploration activity in area increasing but remains extensively under explored Proven petroleum…
Ethiopia - South Omo Area = 29,465 km 2 AOC holds 30% interest Protection acreage along Tertiary rift trend north of Lake Turkana Highly underexplored Omo with no seismic or wells National Mago Park drilled National Park…
26 Ethiopia - Adigala Area = 27,193 km 2 20 19 AOC holds 50% interest 18 17 16 15 Field work confirms source, 14 13 seal and reservoir 12 11 Oil extracted from source 10 9 8 7 rock matches oil…
27 Ethiopia - Ogaden Blocks Acquiring seismic over existing leads. Blocks 6 & 7 complete, finishing Block 8 in December Light oil recovered from Jurassic in both El Kuran wells Plan to drill one well in 2012 depending on…
28 Puntland Oil seeps and shows in wells Oil Indications Concessions located in Puntland, a more stable and semi-autonomous region of Somalia Oil Indications Direct analog to Yemen discoveries with numerous shows and…
Puntland-Dharoor & Nugaal Farmout completed to Red Emperor to take 20% for paying 30% of first wells Remapping Dharoor prospects for final prospect selection Currently attempting to procure rig contractor under acceptable terms 29
30 Mali Blocks 7 and 11 25% in Blocks 7 and 11 Farmed-out 75% interest to Heritage Oil 18 mm acres in Central African rift system Oil shows in nearby water well Analogous rift basins include the Agadem block, Niger, reported…
31 Community Development CD projects include: CD projects must have: School rehabilitation Religious neutrality Bursary Fund Sustainability Farm tools Local content Birkahs (water storage) Potential for capacity building Human…
33 Cash Sources Cash Sources: 118.5 MM Past costs are subject to Tullow audit Cash (end of (post-closing matter) 2010) Additional CAD9.7MM of warrant proceeds potentially receivable (expiring Tullow/Lion past May-2012) 30.3…
34 World Class Potential in Multiple Petroleum Systems Pro-forma Working Interests Current Working Interests (Lion Energy Corp. Acquisition)4 Geographic PSC/PSA Operator Gross Best AOC Net Best AOC Working Net Best Region…
35 Size of the Prize Prospective Indicative Risked Potential Potential Resources Net Best Risk Prospective Value Estimate (MMbbl) Factor Resources (MM) 20% 5,474 (MMbbl) 1,294 6,470 10% 647 2,737 1% 65 274 Recently completed…
36 A history of value creation Company 2002 Present Notes Tanganyika 0.55 / share 31.50 / share Sold to Sinopec 13.5 million MC 1.9 billion MC 2008 Valkyries 0.45 / share 16.00 / share Sold to Lundin 4 million MC 750 million MC…
37 Summary and Conclusions Africa Oil now has the largest acreage position in East Africa on four highly prospective rift basin trends one of the few places left on earth for billion barrel fields onshore with good fiscal…
38 AOI has a strong management team Keith Hill, President and CEO Mr. Hill has over 25 years experience in the oil industry including international new venture management and senior exploration positions at Occidental Petroleum and…
39 Cautionary Statements This document contains statements about expected or anticipated future events and financial results that are forward-looking in nature and, as a result, are subject to certain risks and uncertainties,…
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