Africa Oil Encouraged by East African Resource Estimates
Africa Oil announced that an independent assessment of the Company's contingent and prospective resources has been completed by Gaffney, Cline & Associates. The independent assessment was carried out in accordance with the standards established by the Canadian Securities Administrators in National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities. The effective date of the report is December 1, 2009.
The Company's assets in East Africa contain major oil resource potential. Africa Oil operates Production Sharing Contracts in Kenya, Ethiopia and Puntland (Somalia). The Company also has a non-operated block in Kenya (Block 9). These blocks contain under-explored plays in basins that have proven and productive analogues, or where the petroleum system is calibrated by existing well and seismic data.
Keith Hill, Africa Oil's President and Chief Executive Officer, commented, "We are very pleased that this independent assessment confirms the Company's view that we have assembled a highly prospective pool of East African exploration properties. The impact of a discovery in any of these countries would be of major significance to the Company. The aggressive seismic and drilling programs planned across all geographic areas of interest over the next two years are designed to convert these large potential resources into reserves."