Ethiopia & Kenya

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Africa Oil is a TSX Venture Exchange listed company with a significant exploration portfolio onshore East Africa. The acreage held by the company is located in Kenya, Ethiopia and Somalia and comprises one of the largest exploration portfolios in the region. East Africa is recognized as being greatly under-explored whilst offering world-class exploration potential based upon existing discoveries and analogous basins. Africa Oil Corp (“Africa Oil”) or (“the Company”) has engaged FirstEnergy Capital LLP (“FirstEnergy”) as exclusive financial advisor to the farm-out of certain blocks in Ethiopia and Kenya.

With the exception of Block 9 in Kenya, which is CNOOC operated, the entire portfolio is operated by Africa Oil. The Company has actively managed its portfolio and has initiated exploration work on the acreage whilst continuing to screen and evaluate new business opportunities as demonstrated by the recent acquisition of blocks 12A and 13T in Kenya which are pending government approval.

In order to continue the management of the portfolio Africa Oil has mandated FirstEnergy to seek additional partners for its Block 10BB and 10A assets in Kenya and its Ogaden Blocks (Blks 2&6 and 7&8) and the Adigala Block in Ethiopia. The opportunity is being offered to a limited number of qualified potential partners and Africa Oil has a preference for strategic partners who are seeking a position in multiple assets within the divestment portfolio. The preferred deal structure will incorporate a 2 for 1 promote on the work programme (seismic and/or drilling) and a pro-rata share of past costs. Africa Oil is also prepared to have a broader discussion across other elements of its East Africa portfolio.

Key Investment Highlights

• Opportunity to partner with Africa Oil on a number of blocks offering exposure to a variety of plays and having world-class exploration potential
• An independent assessment of the Company’s contingent and prospective resources has been completed by Gaffney, Cline & Associates (“GCA”) with net working interest best estimate, which Africa Oil have aggregrated to a total prospective resources in excess of 5 billion barrels (1)
  
• Within the divestment portfolio, GCA recognises prospective resources which Africa Oil have aggregated to a total exceeding 2 billion barrels for the blocks to be partially divested (Ethiopia Adigala and Ogaden Blocks and Kenya 10BB and 10A) (1) (2)
  
• Acreage is located in basins which have proven hydrocarbon potential and/or nearby proven and productive analogues.
• The region is bounded to the north, west and south by established hydrocarbon provinces in Yemen, Sudan, Uganda and Madagascar
• The operator, Africa Oil, has a strong management team with in-country experience and expertise
• All of the blocks are governed by contracts offering highly attractive fiscal terms
  

1 Note: Whilst volumetric assessments for individual leads and prospects has been made by GCA, (effective 1st Dec 09) the stated aggregate values have been calculated by AOC management. Please see AOC’s press release dated 7 January 2010 for more detail of the prospective resources contained in the GCA report

2 GCA has not estimated prospective resources for the Adigala Block

Transaction Process

Having signed a Confidentiality Agreement, interested parties will be provided with an Information Memorandum and will also be provided with access to the online data room. A physical data room with access to a seismic workstation will also be available at FirstEnergy’s London office.

The firm bid deadline for these assets is July 15th, 2010 but consideration will be given to any proposals submitted prior to this date.

For more information please contact: